Forex and Stock Market News - Page 41 of 50

6th March 2017

Head and shoulders chart patterns

The head and shoulders chart patterns are perhaps the best-known amongst those who use charts as a means of identifying trends. We will now take a look at the head and shoulders top (reversal) as well as the head and shoulders bottom (reversal) which offer similar patterns but a very different direction for the underlying share price.

Head and shoulders top (reversal)

Before a head and shoulders top (reversal) pattern can crystallise there needs to be a significant uptrend in the underlying share price. As the name suggests, the pattern created is similar to a left shoulder, head and right shoulder together with a neckline which offers both support and resistance. Continue reading “Head and shoulders chart patterns”

5th March 20176th March 2017

Warren Buffett’s annual words of advice

Every year Warren Buffett sends out a letter to shareholders giving them a summary of the previous year, his thoughts on the future and some self-deprecating comments. Even though many people have the impression that everything Warren buffet touches turns to gold, this is not the case and the man himself is well aware of that. So, what interesting quotes can we take from Warren Buffett’s latest words of advice?

“I’ve made some dumb purchases.”

The truth is that we all make “dumb” purchases at some point whether we base these on value investments, new trends or perhaps we misread the markets. Even though the US market, to take this as an example, is currently flirting with new highs the divergences in sector performance is extreme. Even though many people bought into the Donald Trump economic future there are just as many who sold up and initially switched into gold, much to their annoyance. So, the message here is that we all make dumb purchases but if we make more good purchases than dumb ones, positive performance will come through. Continue reading “Warren Buffett’s annual words of advice”

5th March 2017

Common share price graph trends

The practice of using share price graphs to try and predict future movements is one which attracts controversy and praise in equal measures. The fact is that graphs do offer an interesting indicative snapshot of how a share price is currently performing compared to its historic movements. Breakouts and resistance levels can also be highlighted so, while not everybody believes in using share price graphs, they do have a place in the investment arena. We will now take a look at some of the more common chart patterns.

Double top (reversal)

The double top (reversal) is one of the more common chart patterns which you will come across. It occurs after a share price has increased dramatically and then hits a level which attracts sellers. During on average the next month the share price will trade just below the recent high and then make a play for a new high. This is when a double top (reversal) can occur when the share price runs out of steam and after reaching the previous high we then see a drop. Continue reading “Common share price graph trends”

4th March 2017

Fed looking to dampen market spirits

Janet Yellen, a key member of the Federal Reserve, has effectively put markets on notice that US base rates are likely to increase after the next two day meeting which starts on 14 March. This is not the first time the Fed has looked to spoonfeed the market information ahead of a base rate change but this is perhaps the most blatant. The suggestion is that employment and inflation continue to evolve “in line with expectations, in which case a further adjustment of the Federal funds rate would be appropriate”. As a consequence, the main US indices began to run out of steam towards the end of the week although they still finished the week moderately positive.

What do the Fed futures suggest?

Fed futures suggest there is an 82% chance of a rate hike at the next meeting on 14 March. When you compare this to a probability of 20% just seven days ago it is not difficult to see how expectations have been managed. While the Fed is an independent body in charge of looking after the US economy these policies do not fit well with those of Pres Donald Trump. So, could the Fed be moving towards a battle royal with the new president? Continue reading “Fed looking to dampen market spirits”

4th March 20175th March 2017

Stanley Druckenmiller returns to gold

North Korean crisis ramps up investor risk

In light of the election of Donald Trump to president of the USA a number of experienced and extremely successful investors decided to reduce their exposure to gold. Historically gold is seen as a safe haven in times of trouble so, with many expecting the US stock market to push ahead, it made sense to reduce their exposure. Stanley Druckenmiller is one such extremely successful investor with a career taking in the likes of George Soros and his own company Duquesne Capital (closed down in 2010). So, Stanley Druckenmiller decides to return to gold – what were his reasons for doing so?

The US election

It is common knowledge that Stanley Druckenmiller and an array of other influential investors sold down their gold holdings after the election result. Many had been positive on gold ahead of the elections, amid concerns about worldwide economic growth, but changed their minds when Donald Trump became president. However, in just a short few weeks Stanley Druckenmiller has taken stock of his opinion on gold and decided it is time to get back in. Continue reading “Stanley Druckenmiller returns to gold”

3rd March 20173rd March 2017

UK government hounding 800 celebrities for repayment of tax

Even though investigations by HMRC in the UK are supposed to be private and confidential the names of former Manchester United boss Sir Alex Ferguson and ex-England manager Sven Goran Eriksson are apparently amongst a list of 800 celebrities and professionals being pursued by tax officials. In what could become one of the largest tax investigations in living history, there are real concerns that some of those who invested in “film schemes” could end up paying up to 20 times their initial investment. So, on what basis is the UK government hounding 800 celebrities for repayment of tax?

Film investments

Film investment schemes have been popular over the last 20 years or so and effectively allowed individuals to invest in “film investments” which allow them to reduce their tax bills. In a complicated structure the schemes revolve around a process of buying and renting back Hollywood blockbusters to film studios allowing investors to shield potentially billions of pounds from the UK government. Many so-called tax avoidance schemes have been pushing the envelope back as far as possible and, from what the UK authorities are suggesting, the area of film investment could be about to unravel. Continue reading “UK government hounding 800 celebrities for repayment of tax”

3rd March 2017

Deutsche Bank to draw a line under past problems

German banking giant Deutsche Bank is rumoured to be on the verge of an €8 billion capital injection to strengthen the company’s balance sheet. This will also free funds for an array of strategic investments after years of fighting fires through the courts. Those close to the company believe that a deal has already been agreed in principle which could see part of the company’s asset management division floated off via an IPO. So, how does Deutsche Bank plan to draw a line under historic problems?

Deutsche Bank is not alone

There is no doubt that the company will take centre stage over the coming days and weeks although the issues it has encountered have also been replicated across the industry. A further €4.7 billion have been earmarked for litigation in relation to toxic mortgages and so-called sham Russian trades. There may be an array of new civil actions to follow but at this moment in time the company does have a definitive settlement in mind. Continue reading “Deutsche Bank to draw a line under past problems”

2nd March 20173rd March 2017

Michael Lebowitz warns market is overstretched

An analysis of the market by 720 Global’s Michael Lebowitz could be seen as a warning sign amid concerns stock valuations have become far too stretched in the USA. This is not the first time that experts have warned about overstretched stock valuations but this particular analysis does seem to go a little deeper than most. So, on what basis does Michael Lebowitz believe markets are overstretched?

Comparing like-for-like

Many people automatically look back at the previous tech bubble and quite rightly suggest that valuations are nowhere near the same level. That may be the case, but the economic environment of 1999 was very different to that we see today. To give you an example, during the period 1995 to 1999 average GDP growth in the US was 4.08% but between 2012 and 2016 the average has been just 1.90%. Another interesting factor is productivity growth which averaged an annual rate of 1.84% just prior to the last tech bubble but now stands at just 0.49%. Federal debt was $5.36 trillion as opposed to $17.47 trillion today which equates to a respective 60.23% of GDP as opposed to 101.40% of GDP. Continue reading “Michael Lebowitz warns market is overstretched”

2nd March 20173rd March 2017

Chris Sacca, Snapchat and the one that got away!

Every successful investor has an outstanding opportunity which came their way and for one reason or another they did not take it up. Chris Sacca is the founder of Lowercase Capital LLC and a man said to be worth in excess of $1.2 billion. So, while he’s not short of a bob or two, he now deeply regrets not answering an email back in 2012 from the founders of Snapchat!

An invitation to climb on board

Bobby Murphy, the CTO of Snap, contacted Silicon Valley investor Chris Sacca back in 2012 asking his advice about a possible office move and his plans for Snap, which is the parent company of Snapchat. Sacca acknowledges that he failed to respond to the email and within 12 months the company brought in its first outside investor in the shape of Lightspeed Venture Partners. The company initially invested $485,000 and was a regular contributor in future funding rounds. Continue reading “Chris Sacca, Snapchat and the one that got away!”

1st March 2017

New investment charts section on Forum

We are delighted to announce a new section on the Bull Market forum where you can post investment charts and discuss with other members. We believe this will be an invaluable tool going forward giving an indication of share prices which are particularly strong, particularly weak or perhaps set to break out of their trading range. Even though some people are sceptical about reading charts it does certainly have a role to play in the modern day investment arena.

What do charts tell you?

Sceptics will tell you that a stock chart only tells you what has happened in the past and not what will happen in the future. In reality this description is fairly accurate although it is possible to compare and contrast emerging patterns to see how the share price might react going forward. It is only when you put together the indicators of a share price graph with underlying research that you get a greater understanding of the potential. Continue reading “New investment charts section on Forum”