Monday Morning Outlook 10 October 2016

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Lionel Wade
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1 Monday Morning Outlook 10 October 2016 In this Monday Morning Outlook, Prestige Bulletin offers you the following: 1. Last week on the commodity and currency markets and our forecast. 2. Last week on the stock markets and our forecast. 3. The secret to create a growing stream of income. 1. Last week on the commodity and currency markets and our forecast As Monday Morning Outlook forecast, a few weeks ago, the gold price in dollars fell to less than $ However, our expectation that the gold price could first increase before the sharp fall occurs didn't materialise. This morning, the gold price was $ The fall in the gold price was 4.8% last week. We previously indicated the red, support line to you on the graph of the gold price in dollars. At that stage, we indicated that if the gold price made a downward break through the red line, and cut through $1 290, it could fall much further. This has now happened. TimBukOne We've indicated the next target for the gold price in dollars for you with the green line on the graph. If the gold price falls to the green, support line, which is unlikely, the price will be $ Our analysis indicates that after the current fall, the gold price could soon test $ The reason why the gold price experienced a hard fall over the past week, and could fall even further, is because the Federal Reserve in America could possibly increase interest rates by 0.25% to 0.75% in December this year. It's detrimental to the gold price when interest rates increase. Investors don't receive any return on gold that they hold. Hence, it's more beneficial to invest money for interest income when interest rates increase. 1 Copyright 2016 SA Consult Group (Pty) Ltd. All rights reserved.

2 Our advice regarding gold, in January this year, was that you should not start buying gold on a large scale now. However, Prestige Bulletin and Monday Morning Outlook's advice is still that you should keep a portion of your high-risk capital in gold as a long-term investment. Gold is an excellent hedge against inflation in any country. There is not currently a great danger of inflation in South Africa over the next few months. Over the long term, South Africa will experience high inflation again, as occurred in the past. Hence, it's still important to hold a portion of your wealth in physical gold, such as Krugerrands and NewGold, as protection against high inflation. Another reason why you can invest in gold is because the rand will also continue to weaken against currencies, such as the pound, euro and yen, over the long term. An investment in physical gold also offers protection against a weak rand, because the gold price is determined internationally in dollars. The gold price in rand terms decreased by 4.8% last week. This morning, the gold price in rands was R In January 2016, when the gold price in rands was R18 419, Monday Morning Outlook forecast that the gold price could decrease to R during That is exactly where the price is now. On the graph of the gold price in rands, below, you can see that the price made a strong, downward break through the red, support line. A similar support line was also penetrated by the gold price in dollars, as you saw on the graph on the previous page. TimBukOne The purple line on the adjacent graph indicates a later target of R for the gold price in rands, for early in If the gold price in dollars weakens considerably, in 2017, on its way to our target of $700, the gold price in rands could at that stage fall far to R15 000, as indicated by the green line on the graph. However, remember that the most wealth is built on the financial markets over the long term. Hence, even if the gold price in both the dollar and the rand decreases, as we forecast above, our advice would still be that you should invest a small portion of your high-risk capital, such as 5%, in gold. 2 Copyright 2016 SA Consult Group (Pty) Ltd. All rights reserved.

3 This morning, the platinum price in dollars opened at $980. The platinum price in dollars made a strong, downward break through its support line, which we indicated to you last week. In this process, the platinum price quickly fell by 6.2% last week. Monday Morning Outlook forecast in September this year, while the platinum price was at $1 030, that a fall to $972 could take place. This forecast was particularly accurate. Last Wednesday the platinum price traded as $973. This morning the platinum price opened at $980. Over the next few weeks the price could rise again to $1 030, before decreasing to $850 early in The increase in the Brent crude oil price was 3.6% last week. This morning, the Brent crude oil price opened at $ Our target for Brent crude oil is $60 over the next few months. As Monday Morning Outlook mentioned last week, this increase will occur once Brent remains above $50 for a few weeks. Even if Brent was to decrease to $40, the price could recover to $60 per barrel by the end of the year. The CRB Index, which contains a large number of mining materials, increased slightly last week. The increase was 0.2%. The current price of the CRB Index is $ The CRB could possibly increase to $450 over the next few months. Our analysis subsequently indicates a possible decrease to less than $390. Last Tuesday, the rand was at its strongest, over the past week, when it was trading at R13.63 for one dollar. However, the rand rapidly began to weaken again last Thursday. It cost R13.85 for a dollar last Friday. As a result of government problems and student unrest, the rand can't achieve its actual value of R12.80 to the dollar at the moment. Hence, we expect that the rand will continue to move in a band between R13 and R15, in the coming few weeks, but that it will probably be close to R14. As Monday Morning Outlook forecast, the dollar strengthened against the euro, pound and the yen last week. The dollar will strengthen considerably against all currencies, such as the rand, euro, pound and yen, over the next few years. In our view, the dollar is the best currency for your long-term, offshore investments. 3 Copyright 2016 SA Consult Group (Pty) Ltd. All rights reserved.

4 2. Last week on stock markets and our forecast Below, you can see how the stock markets performed last week. Stock market Closing price Friday 07/10/2016 Movement last week Current P/E JSE All Share Index % 24.3 USA Dow Jones Industrial Average % 20.2 USA Dow Jones Transportation Average % 12.7 USA S&P % 24.6 USA Nasdaq Composite % 25.3 UK FTSE % 20.9* France CAC % 21.5 Germany DAX % 20.1 India Sensex % 20.7 Japan Nikkei % 20.5 Australia ASX All Ordinaries % 23.9 South Korea Kospi % 18.2 China Shanghai Composite % 14.8 * Monday Morning Outlook calculated the FTSE 100's current p/e as 20.9 Monday Morning Outlook's forecast, early in January this year, was correct when we said that stock markets globally are in a bull market. In line with this forecast, the American markets recently recorded new highs. Furthermore, in line with our forecast, the FTSE 100 is currently only 0.8% below its all-time high. During the next few weeks, the FTSE should manage to record a new all-time high. At the end of this year, the FTSE 100 should be at a new all-time high for As far as the American stock markets are concerned, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq all achieved new all-time highs recently. Although limited, short-term decreases may occur, further increases to new record levels, could take place before the end of this year. The JSE is struggling to increase. The JSE is currently still 6.4% below its alltime high. Last week the JSE decreased by 0.6% and is currently at Due to government problems and student unrest, the JSE will not record a new record high any time soon. Nevertheless, Monday Morning Outlook's analysis indicates that the JSE could increase to a new all-time high, over the next few months. We will keep you up to date with developments. 4 Copyright 2016 SA Consult Group (Pty) Ltd. All rights reserved.

5 3. The secret to create a growing stream of income The secret that some of the wealthiest people in the world use to create a growing stream of income is to do it through networks, rather than attempting to do all of the work themselves. Think for a moment about how successful money-making works. Examples are plentiful. Take a successful car salesperson, as an example. Immediately after someone has bought a car from a salesperson, the salesperson quickly asks for the names of one or two other people who may also be interested in buying a car. In this way, the successful salesperson achieves everything through networks. Use the following method to create a growing stream of income for yourself through your network. 1. How to be the brain behind your business To make the most money with the least amount of work, you need to force yourself to be lazy. In this way, you will succeed in making big money by using other people to do the work for you. You must simply be the brain behind the whole idea; the person who puts everything together and organises. Delegate, delegate, delegate! 2. How to get all the work done Appoint certain people in your team as managers as soon as possible, so they can supervise the others. Normally, two managers would be required: a sales manager, who supervises your sales agents and motivates them, and an administrative manager, who will manage most of your business's administration. By making use of managers, you will be able to do the absolute minimum amount of work yourself. A family member such as your spouse or child can, naturally, also be appointed as a manager. In order to reduce the financial risks linked to your business, the manager should also rather be paid a commission, such as 5% of the business's total sales. Managers do not have to work for you full-time. A good, motivated, part-time manager is worth much more than a poor, full-time manager! 5 Copyright 2016 SA Consult Group (Pty) Ltd. All rights reserved.

6 3. How super high remuneration will get your products sold It is important to get the largest possible team of people together to sell your products for you part-time or full-time. Do not pay fixed salaries, but pay exceptionally high sales commissions. A recipe, which has been proven over and over again in the business world, is to give away 60% of the gross profit as commission. This generosity will make people queue up to work for you, and it could rapidly build an enormous sales team and a highly successful business for you! 4. How to run your business free on the Internet Also use the Internet to sell your products. One of the easiest and most cost-effective ways to get your business online is through a blog. WordPress offers a free service that you can use to get your business online with a blog. You don't have to pay any licence or hosting fees. Visit WordPress by typing in on Google. Follow the easy steps, set up a blog for your business and place it online. A blog can look and feel exactly like a normal website and, hence, it is not necessary to initially spend a large sum of money for a professionally designed website. The biggest difference between a blog and a website is that blogs have regular articles. Make your blog (that looks and feels like a normal website) interesting with free articles that are related to your products. If, for example, you're selling a weight-loss product, simply type in "royalty free articles weight loss" into Google and you'll find hundreds of articles. Use Prestige Bulletin's regular advice on Internet marketing to easily and cheaply sell your products on the web. 5. How to put the most profit in your own pocket This is where most people fail. The key to success in a network type of business is not to be greedy at all. Your business will only work if you are prepared to give away the largest portion of the business's income to the people who are doing the work for you. After all the commissions and expenses are paid, only about 10% of the business's total income could find its way to your pocket. This may sound like very little, but if you build this business correctly that 10% could yield a substantial amount of many thousands of rands per month! And remember, with the correct management structure in place, you'll earn this amount of money by only working for about an hour per week yourself! Conclusion There you have it! The way to create a growing stream of income is to get other people, who are remunerated handsomely, to do all of the work for you! 6 Copyright 2016 SA Consult Group (Pty) Ltd. All rights reserved.

Important announcements for the week ahead Monday, Tuesday, Wednesday, Thursday, Friday, 10 Oct 2016 11 Oct 2016 12 Oct 2016 13 Oct 2016 14 Oct 2016 No important announcements Interim results:

2016; and (2) to see shares in last week's feedback that currently offer value. Our next Monday Morning Outlook will reach you on 17 October 2016.

7 Important announcements for the week ahead Monday, Tuesday, Wednesday, Thursday, Friday, 10 Oct Oct Oct Oct Oct 2016 No important announcements Interim results: Interim results: Interim results: No important announcements Feedback on company news for last week Click here (1)to read our feedback on company announcements for last week, which ended on 7 October 2016; and (2) to see shares in last week's feedback that currently offer value. Our next Monday Morning Outlook will reach you on 17 October Kind regards Erika van der Westhuizen Client Liaison Prestige Bulletin (Pty) Ltd sainfo@saconsult.co.za Tel: (012) Indemnity The information provided here is given in good faith by Prestige Bulletin (Pty) Ltd, publishers of the Monday Morning Outlook, but the correctness of it cannot be guaranteed. Prestige Bulletin (Pty) Ltd does not accept any liability for any damages suffered by anyone on account of this information. Past performance is never an indication of future growth. All investments on the markets always hold risk and there is the danger of capital loss. Markets don't only increase, but decrease as well. Consult an authorised advisor before you make any investment or enter into any business transaction. 7 Copyright 2016 SA Consult Group (Pty) Ltd. All rights reserved.

Edition Publishing Financial E-letter since 2001 September 23, 2012

Edition Publishing Financial E-letter since 2001 September 23, 2012 Edition 702.0 Publishing Financial E-letter since 2001 September 23, 2012 Weekly Newsletter from 24-28 September 2012 Dear Members, Last week Indexes and metals remained in bullish tone. Oil and grains