I am a complete n00b at this stock stuff.
I have tried and tried, but I cannot make any sense out of what's happening, I have read all the stuff regarding the resale of debtors books that basically stacked the crumble, but, I cannot for the life of me understand how this affects our shares.
I tried to do some predictions and was wrong 70% of the time, which is a disastrous ratio.
I did notice that the rand/dollar is affected quite quickly by overseas investors retrieving their money back from our shares, but .. I cannot actually find out where these shares were sold from, as there seems to be a sudden spate of opportunistic buying straight after the sale.
But, I cannot see who is doing the opportunistic buying, specifically, which currency.
I wonder if the JSE is designed to be this non-transparent on purpose ...
Anywayz .. Pure speculation : I recon that our shares are changing ownership from one country to another superfast, and that there is a distinct possibility that the country behind the initial crumble is the one ending up owning most of everything.
How does this affect me? I don't think that the process is finished yet, as there is still too many overvalued shares out there that can be exposed to force a sudden selling panic (in the morning) and then of course the quick buyback.
If I was in front of the queue on the floor at the JSE I would wait for a bulk sale and immediately snap up those shares just before the the buyback arrives, which seems to be in the afternoon.
But, it's not possible for me to be first in the queue, so all that's left is the leftover unwanted bits and pieces after the price of the share has re-settled.
So, sit and wait says I, unless you can be on the floor in the action, in which case ... make your own conclusions, and share them with us ..
But I guess thats how people learn. And you think the long recovering also apply to the satrix 40? I'm still learning how to "read" these things. Maybe some day I'll understand.
