Trading stocks isn’t a hit topic on this site, but for the few of you who have an interest, South Africa is a buy right now. This chart of the EZA index shows why I think so.
In this chart you see a clear upward trend over the past 5 years. As investors, we want to be on board for these types of trends, especially since it has been pretty moderate. No bubble has formed yet but since most trends that look like this end in a bubble, we have an opportunity to be in at the start of a bubble.
Further, the index price is currently right at the lower end of the trend line. To me, this is the perfect entry point. If it drops below 105 and holds, it becomes a sale, so we risk only losing a little. If it resumes it’s upward trend it has room to go all the way up to 180 in the next year. So, by my calculations, a purchase today at 111 has a downside risk of 7 percent (sale at 103) and an upside potential of 60 percent (sale at 180). This is the type of opportunity I look for in the markets.