Tesla shares surge

Tesla shares surge

Over the last 12 months the Tesla share price has been as low as $176.99 and as high as $507.50 which we see today. The shares smashed through the $500 barrier with an array of analysts increasing their price targets and talking up the company. To put this into perspective, Tesla is now valued at approaching $100 billion which is more than the combined value of Ford and General Motors. Indeed, this is 64 times the value of Aston Martin. So what is happening?

Global delivery figures

Last Friday Tesla confirmed it had delivered 367,500 electric vehicles in 2019. This record-breaking figure is up 50% on the previous year with around 112,000 vehicles delivered in the final quarter of 2019 alone. We also know that production numbers are up having grown by 10% between the third and fourth quarters of 2019. This comes at a time when the company is also ramping up business in China having recently delivered its first Chinese-produced vehicle. We can only assume that analysts have been caught somewhat offguard by the company’s recent troubles and failed to recognise the huge increase in delivery numbers. Continue reading “Tesla shares surge”

Should you strip emotion out of your investment decisions?

Should you strip emotion out of your investment decisions?

When it comes to investment there is a big difference between emotion and a gut feeling. Understanding and appreciating the difference between these two emotions could literally make or break your investment returns going forward. So, how should you treat emotions when it comes to investment decisions?

Learn how to read the markets

I was going to say that figures and statistics are the key to valuing a company but you also need to appreciate market movements. As we have mentioned on numerous occasions, if you think of the stock market as an information exchange, as opposed to a place where you buy and sell shares, you will begin to understand the process. Continue reading “Should you strip emotion out of your investment decisions?”

What role do old industries have in the future economy?

A new dawn

It is safe to say that technology and the Internet have changed the way in which businesses operate today and consumers find particular product/services. This has prompted the question, what role do old industries have in the future economy. It is fair to say that their role has changed but it is totally wide of the mark to suggest that they are no longer required.

New technology

Technology has now literally taken over the business marketplace and changed it into something which many people will not recognise. The ability to shop 24/7, acquire products and services from around the world and communicate all day everyday has taken the retail sector to a whole different level. However, technology has also had a material impact on so-called “old industries”. Continue reading “What role do old industries have in the future economy?”

What does 2020 hold for the US stock market?

What does 2020 hold for the US stock market?

It is safe to say the 2019 has been an eventful year in the USA, ending with Donald Trump impeached and set to stand trial next year. How this impeachment progresses and the eventual outcome remains to be seen with Republicans and Democrats controlling different political houses in the US. However, if you look forward to 2020, what does this hold for the US stock market? What type of stocks should you be looking at and which sectors might fly?

Immediate outlook

As regards to the US economy there are still many unknown factors which could and will likely impact economic growth over the next 12 months. The conclusion of a partial trade deal with China has been welcomed but many experts believe the agreement will very quickly start to unravel. The US is also in dispute with the European Union with the only country Donald Trump seems happy to deal with being the United Kingdom. Opinion is split as to how the economy will perform in the next 12 months and whether indeed Donald Trump will end next year as president. Continue reading “What does 2020 hold for the US stock market?”

End of year investment review

Should you strip emotion out of your investment decisions?

As we approach the end of 2019 many people will be sitting down to review their portfolio performance and instigating plans for 2020. While sometimes a review of your investment portfolio can be an “eye-opener” it is something which needs to be done on a regular basis.

Relative performance

It is important that you find an index which is relative to your investment criteria so that you can compare and contrast performance of your portfolio. For example, there is no point in comparing a portfolio of technology shares against the general Dow Jones index. As and when your portfolio structure changes it may be sensible to switch to different indexes. Whatever happens, it is imperative that you are able to compare and contrast your performance on a relative basis. Continue reading “End of year investment review”

Why delivery charges will become the norm for e-commerce

Why delivery charges will become the norm for e-commerce

In recent times we have seen surveys suggesting that consumers are happy to buy their products online may be abusing the free delivery system. It is common knowledge that many consumers will buy one dress or one shoe in different sizes, returning the items which do not fit. This has created something of a problem for the e-commerce market and the cost of delivery. Even though many consumers will search for the “free delivery” option, delivery charges will become the norm in due course. Why?

Amazon changing e-commerce

Amazon offers a variety of different delivery options from free delivery for some items to the Amazon Prime membership alternative. The idea is simple, hook first-time buyers and returning consumers and ensure they come back to Amazon time and time again. This is a very interesting and we now know lucrative method of encouraging customer loyalty – which will eventually become the norm. Continue reading “Why delivery charges will become the norm for e-commerce”

Are there viable options other than investing on the stock market?

Are there viable options other than investing on the stock market?

The reality is there is a whole array of different investment opportunities other than stock market investments. However, stock market investment is vital to long-term investment strategies such as pension plans and the like. There are a number of issues to consider when looking at alternatives.

Liquidity

The vast majority of stock market shares have a certain degree of liquidity which can vary significantly. However, there is liquidity. If you look at investments such as physical property then yes, there will be buyers but converting property asset into cash in a short space of time can be challenging. Indeed, some investors looking to cash in their property assets in double quick time may need to offer some kind of financial incentive to buyers. Continue reading “Are there viable options other than investing on the stock market?”

Can older companies/sectors compete with new technology?

Can older companies/sectors compete with new technology?

There is a growing feeling that many older established companies/sectors are struggling to compete with new technology. If you look at the likes of Dell, with recent figures disappointing the market, this is a prime example. The company appears to have a sound asset base but maximising asset value has proven difficult if not impossible. If you also take a look at the high street, e-commerce companies have slashed profit margins and put many established retailers in serious danger of going out of business.

It’s all down to the cost base

When you clear away the emotive arguments, surprise and concern, it all comes down to pure cost against sales. New companies today are able to take advantage of the new online era, slashing their base costs, and placing huge pressure on established companies. If we look at the retail sector this is a perfect example; for many companies there is no need to have a physical shop thereby reducing significant base costs. It is not just the cost/rent of the property but staff and growing running costs going forward which face many traditional retailers. For many new e-commerce businesses those issues are not an issue! Continue reading “Can older companies/sectors compete with new technology?”

Markets unconcerned about Trump impeachment hearing

Markets unconcerned about Trump impeachment hearing

If the opposition parties in the UK rallied together to force Boris Johnson from office it is likely the UK stock market would come under pressure. Markets like guarantees, they like certainty and any political shenanigans can undo all of this. So, why are US stock markets unconcerned about the ongoing impeachment hearing involving their President Donald Trump?

Donald Trump has faults but…..

Whatever you think of Donald Trump there is no doubt that he has done exactly what he promised, America must come first. He has withdrawn funding from many international organisations, announced trade tariffs and is playing hardball with many of America’s trading partners. Whether you like his personal persona or not there is no doubt that he is putting America first and the general public/investors seem to appreciate this. Continue reading “Markets unconcerned about Trump impeachment hearing”

Technology shares are a hedge for the future

Technology shares are a hedge for the future

Traditional investors look at the technology sector and shake their head with disbelief and dismay in equal measures. Many of these large technology companies are valued at billions of dollars yet they are unlikely to make a profit for many years to come. Indeed, many will never make a profit and fall by the wayside as competition intensifies. So, is there really a place for technology shares in the portfolio of a passive investor?

A hedge for the future

The key to successful investment is to gain exposure to sectors in particular companies which are doing well today and will do well tomorrow. There are also many companies which are valued on “hope value” today but may well create a massive return going forward. In effect, technology shares which are unprofitable today offer a hedge for the future. If you find a good one, it may well be a game changer for your investment portfolio! Continue reading “Technology shares are a hedge for the future”