Category: Investment Trends

There is no doubt that Donald Trump is an intelligent man but the coronavirus could prove to be his political downfall. While few would criticise his initial optimism regarding the fight against the coronavirus, he does need to let reality speak. The criticism of the president is growing by the day and his strategy of literally digging in his heels is antagonising voters even more. So, what should Donald Trump do?

Let the experts speak Donald!

Those who follow Donald Trump’s tweets will be well aware that he has flip-flopped between non-action and over action with regards to the coronavirus. He has criticised experts, shot down his political opponents and to all intents and purposes moved himself into political isolation. Indeed there was speculation that he was becoming obsessed with plans to intentionally infect him with the coronavirus. This did not go down well with voters….. Continue reading “Time to let the experts speak Donald”

Stock markets around the world are in freefall amid serious concerns regarding the coronavirus and its impact on the worldwide economy. We have already seen an array of blue-chip companies warning about their short-term profits as a consequence of coronavirus related issues. Travel restrictions to a lack of component imports from the Far East are now starting to hit companies at the bottom line. So, what can the government do to assist and when will confidence return?

Markets dislike uncertainty

Those who follow the stock market will be fully aware that whatever definitive scenario, it is easy to value assets when taking into account the risk/reward ratio. The problem with the current situation is the uncertainty about how long the coronavirus will continue to spread and how this will impact the worldwide economy. There is also the double whammy of blue-chip companies announcing on a regular basis that they will see short-term problems due to coronavirus related issues such as supply/travel. Continue reading “The relentless fall in stock markets continues”

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?”

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”

There is no doubt that the Internet has changed the way we live and the way businesses operate. The ability to communicate with people all across the globe in a split second has change the world we live in. However, from an investment point of view, which sectors have been disrupted by new technology?

When we say which sectors have been disrupted by new technology perhaps we should say which ones have been most disrupted? Is there really any area of business which has not been heavily impacted by the Internet? Continue reading “Which sectors have been disrupted by new technology?”

Those who follow currency markets will be well aware that sterling has fallen by circa 20% against the dollar and euro. This is a sizeable reduction in the value of sterling and reflects the ongoing concerns about Brexit and the UK political system. At the same time, the UK stock market is not a million miles off its all-time high. But how can this be, the UK economy is under pressure, sterling has collapsed yet the stock market is relatively high?

Currency movements

Back in the 1980s there were times when sterling was trading at two dollars to the pound but today it is around $1.24 to the pound. This makes UK products and services much more attractive to overseas customers because rather than paying two dollars for every pound they are now paying just $1.24 for every pound. As a consequence, companies with international exposure may well have seen a significant rise in their order books even though we are in one of the most difficult economic and political situations of recent times. Continue reading “Currency movements and inflated profits”

As we have covered numerous times on this blog, subject of insider trading is never too far away. It would be wrong to suggest that the authorities have not made progress but to suggest it is now under control is possibly stretching the truth. However, if insider trading is under control, why do we regularly see stock trading volume spike ahead of announcements?

Watch the volume

There are many ways in which you can pick the next stock for your portfolio, research, recommendations or simply following stocks which have higher than usual volumes. You can throw in all your research, public expectations and comments on the bulletin boards but good old-fashioned high-volume is worth its weight in gold. Why? Continue reading “Volume is the key to future stock announcements”

The stock market is central to both national and worldwide economies. Pension funds, house prices and many other areas of everyday life are dependent upon healthy stock markets. However, the world of investment can be a very strange and bizarre place with some unique sayings.

The trend is your friend

The trend is your friend is a very popular saying in investment circles. In simple terms, share prices are based upon public information and in many cases non-public information. So, while the public information on a particular company may be suggesting a share price direction very different to that on the market, take note of the trend. There may be things going on behind-the-scenes that you don’t know about – yet. Continue reading “Common stock market sayings”

The simple answer is there are no definitive signs of a pending stock-market crash, otherwise everybody would sell up and leave the market! This may sound a little obvious but it is true. If you look back in history the voices suggesting a pending stock-market crash will more often than not be drowned out by those who kept on pushing prices higher and higher. This is best described as the ultimate bull market.

When pessimists turn positive

One of the more common characteristics of a market which may be ready for a “correction”, or even a crash, is when the most pessimistic analysts/investors begin to turn positive. When there are people positive and those negative on the short, medium and long-term outlook for stock markets, this gives a balanced approach to share price ratings. When everybody turns positive or everybody turns negative than this balance is removed. Continue reading “What are the signs of a pending stock-market crash?”

In days gone by public relations (PR) would often be a simple nod and a wink to let influential investors know what was happening. The situation today is very different with literally millions of pounds spent on PR to keep private investors and institutional investors up-to-date with events. While we asked the question “is PR now an integral part of stock market life” the simple answer is yes!

The tail wagging the dog

Looking at the likes of Tesla, Weight Watchers, Facebook, Snapchat and Apple to a certain extent, far too much time seems to be spent on PR. These are companies which have experienced significant volatility in their share prices with the likes of Tesla, Weight Watchers and Snapchat under serious pressure. Investors are looking for short-term returns, which is switching the focus of directors towards “keeping investors happy”. Surely their time should be spent on long-term planning and returns? Continue reading “Is PR now an integral part of stock market life?”