The stock market is basically an information exchange were all different views are entered and the markets find their own level as do individual share prices. So, when markets initially ignored the threat of the coronavirus many investors were relieved that the markets “knew something” nobody else did. Was the virus contained? Was the real threat over?
We have seen an array of different viruses over the last decade or so many of which have proved to be deadly. The so-called “disease X” often mentioned by the World Health Organisation (WHO) has yet to materialise even though we have had some near misses. So, could the coronavirus turn out to be the mysterious disease X the one that takes out a huge number of the population? Continue reading “Uncharted territory with coronavirus”
Just a few days ago the Tesla share price was surging towards $1000 a share as shorters scrambled to buy back stock with many registering huge losses. The shares have since settled down at around $750-$800 but today the company announced a $2 billion fundraising. The shares increased by around 5% on the back of this announcement although some are critical of the company’s management. Why?
Back in June 2019 the Tesla share price dipped under $200 and many were gambling that the company would go bust. Haemorrhaging cash, unable to sustain profitability and harbouring a chief executive who was never out of the news, it didn’t look good. However, it is not just shorters closing their positions which pushed the share price to approaching $1000. There has been a fundamental change in the way in which investors are viewing the company and the prospects for the future. Continue reading “Tesla to raise $2 billion”
Whether stock markets are flying high, bottomed out or remain constant, there are always opportunities for speculators. While stock markets can be overoptimistic they can also be overcautious which can create potentially lucrative buying opportunities. Investment forums and websites are littered with the names of successful investors who came from nothing to be multimillionaires.
While we always hear of the shares they made money from, what about the duds, the ones which cost them?
Gamblers never win
As with professional gamblers who use the services of bookmakers, there is only one winner, the bookie. The same is true with those who constantly speculate and gamble on the next success story. Yes, they may find four or five shares on the trot which do well, making them huge amounts of money. However, if they continue to take extreme risks then eventually they will be caught out. Continue reading “Why constant stock-market gambles never pay off”
There was a very interesting article this week regarding diversification against long-term investment. The idea was simple; does it make more sense to invest in the stock market on a long-term basis than trying to trade through the ups and downs?
Protection from stock market crashes
At some point you will hear all investors discuss stock-market crashes, often trying to predict when markets will peak and investors will bail out. The truth is that history shows stock-market crashes are not predictable and it can be one of a number of reasons which could prompt investors to flee. Over the last 50 years there have been three (arguably four) major stock-market crashes in the US. We saw markets suffer in 2007/8, the turn-of-the-century and in the early 70s (although some will point to the 1987 crash as well). So, if you are diversifying your portfolio to protect yourself against a stock market crash then three in 50 years is fairly rare? Continue reading “Invest your money and then walk away”
It is very rare that the Chinese government admits defeat and asks for outside assistance. Therefore, we can only assume that the published data on the coronavirus epidemic is understated and perhaps worse than many experts are suggesting. It now appears as though the virus can be spread between individuals before the carriers even shown signs of the infection. So where does this leave the worldwide economy?
Spreading around the world
At this moment in time the virus is predominantly situated in China but just recently we have had reports that the coronavirus has hit France, UK and the US. Economists are very wary of placing an economic figure on issues such as the coronavirus simply because there are a lot of unknown variables. Perhaps the best way to do it, this was recently reported in a BBC article, is to compare and contrast the coronavirus impact against SARS. Continue reading “What impact will the coronavirus have on the worldwide economy?”
It is now less than a week until Apple results are released to the market and it is fair to say the shares have enjoyed a huge upgrade. The shares are up 9% this year so far, 31% in three months and 53% over the past six months. The shares currently stand at around $318 giving the company a market capitalisation of $1.4 trillion!
Analysts upgrading forecasts
Analysts have recently been upgrading their forecasts with the highest price target now $400 and the lowest $280. At this moment in time there is certainly more upside momentum with regards to analyst forecasts than there is downside. However, after this monumental run in the share price some analysts are now taking a step back awaiting the forthcoming figures and forward guidance. Continue reading “Apple banking on transformational 5G”
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”
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?”
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.
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?”
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?
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?”