Is it time to bank some profit?

The value of using shares to take over other companies

As the Dow Jones Industrial Average index (DJIA) continues to show further signs of strength many are now starting to wonder if it is time to bank a bit of profit. We have seen a significant increase in the US stock market since Donald Trump was confirmed as the next president. While there are obvious reasons for the Trump led rally there is concern that some prices are starting to factor in too much good news. At this moment in time the markets seem to be suggesting that Donald Trump will have everything his own way and even some of his more outlandish policies will be waved through Congress. History shows us that will not be the case…..

Does Trump really want a trade war?

Suggestions that Donald Trump will place a 30% tariff on goods imported from Mexico into the US certainly grabbed headlines this week. We also heard that the German car manufacturers could have less exposure to the US going forward unless more vehicles were actually manufactured in America. There have also been other comments regarding potential trade wars with other countries and it would appear that Donald Trump is “poking a stick” to get a response. Continue reading “Is it time to bank some profit?”

Political scene helps IPO market

How many more IPOs will emerge?

Whether we like it or not it appears that Donald Trump has given investment markets a boost in the short term. While he obviously comes with a lot of baggage, this is a man who seems set to embrace the world of technology appointing advisers such as Elon Musk. So, it will be no surprise to learn that the number of IPOs announced in January has increased dramatically compared to the same period last year. So, is it really the political scenario which is helping IPOs or is it just pent up demand?

Up to 20 deals in the offing

A total of 16 IPOs have already been announced this month with four other companies set to raise further funds after recent IPOs. This is more than double the nine equivalent fund-raising exercises during January 2016. The latest to join the IPO train was Snap Inc. which is the parent company to the extremely popular communications app Snapchat. That IPO alone is set to value the company at the minimum of $25 billion so we can only estimate the total valuation for new IPOs for January. Continue reading “Political scene helps IPO market”

Listen to the markets and understand what they are saying!

Listen to the markets and understand what they are saying!

Each and every investor has their own strategy, their own long-term goal and their own idea of what makes a good investment. We can specialise in specific areas, look for short-term profits or invest for the longer term. The key to long-term success in the stock market is an ability to listen to the markets and understand what it is saying. So, where do you start?

52 week highs and lows

The key to a long-term successful strategy is to keep everything simple and remain focused on your long-term goal. This is why many investors look at the 52-week highs and lows of stocks to see which ones are hitting new highs and which ones are hitting new lows. Why is this important? Continue reading “Listen to the markets and understand what they are saying!”

Company behind Snapchat set to file IPO next week

Snapchat, you live by the sword you die by the sword

Currently valued at around $25 billion the company behind Snapchat, Snap Inc., is set to file an IPO towards the end of next week. This means that the company is likely to look to float on the stock market in March after an aggressive marketing campaign which will see company leaders chat with potential investors in the institutional market. So what do we know about Snapchat and the company behind the massively popular communications app?

Snap Inc. has been ready to go for some time

Snap, the parent company of Snapchat, actually filed a private IPO with the Securities and Exchange Commission (SEC) towards the end of 2016. This was the first step towards a public offering and we should see a glimpse of the company’s financials when the IPO is confirmed. While traditional timing would suggest a March float on the stock market this can obviously change due to market conditions.

The offering will be led by Morgan Stanley and Goldman Sachs and many believe this could be a test for the IPO market and the technology sector. If, as many expect, the IPO is successful then we will likely see a flurry of other companies coming to the fore. It is common knowledge that some of the best-known up-and-coming tech companies have been holding off from floating on the stock market due to recent conditions – not least the inauguration of the new president! Continue reading “Company behind Snapchat set to file IPO next week”

Is flipping property as easy as the TV shows suggest?

Is flipping property as easy as the TV shows suggest?

The US real estate market is one of the largest in the world offering a massive variety of different properties and investment opportunities. From foreclosures to the luxury end of the market, with Celine Dion recently reducing the asking price on Jupiter Island estate from over $70 million to $38.5 million, there is something for everybody. This has prompted a massive increase in the popularity of property reality TV shows with many now showing a significant interest in “flipping properties”.

Is flipping property risky?

In reality buying properties to develop and then flip for a significant profit is a risky game and for many people the profit margins can be very thin and the losses potentially large. It is simply a case of buying a property at a rock bottom price, redeveloping to a standard which will attract interest and then flipping it to the buyer nearest the asking price. The reality TV programs condense a process which can take many weeks or months, including research, to give a dramatic effect. However, it would be wrong to suggest that there is not money in flipping properties because there is and many investors have lived to tell the tale. Continue reading “Is flipping property as easy as the TV shows suggest?”

Can celebrity tipsters really move stocks?

Big, powerful and influential companies attract enemies

While so-called “celebrity” tipsters are two a penny at the moment there is an ongoing debate as to whether celebrity tipsters really can move stocks. We see the headlines, we see their comments but what are their performance figures in the longer term. It is also interesting to note that very often we only hear about their success stories and many of their failures are “buried at night”. So, can celebrity tipsters really move stocks?

Number of followers

Whether we are looking at Warren Buffett or perhaps a well-known research analyst at one of the top investment houses, a lot will depend upon how many followers they have. Are they able to get their information into the public domain? Do people actually follow their advice? How is their track record? Continue reading “Can celebrity tipsters really move stocks?”

Germany warns US against automobile trade curbs

Trade war looms in automobile industry

Every other article at the moment seems to involve President Donald Trump as he seeks to stamp his authority on his time in the White House. As indicated in the campaign for the presidential office, Donald Trump is going to insist that more vehicles sold in the US are manufactured in the US. Immediately this has prompted a response from the German automobile industry which is one of the strongest in the world and heavily involved with the US.

So, what can we expect in the short to medium term? Has Donald Trump just lit the blue touch paper to a trade war with Germany? Continue reading “Germany warns US against automobile trade curbs”

Vasileios Gkionakis telling clients to short the dollar against the yen

Dollar v Yen exchange rate

Vasileios Gkionakis, the man who famously predicted the end of the dollar rally in 2014-15, has taken a contrarian approach to the dollar yen exchange rate. While many are still predicting a strengthening of the dollar in the short to medium term the head of currency research at UniCredit thinks otherwise. With a stoploss limit of ¥115.75 and a target rate of ¥108 from the current ¥113.5 level this is certainly an interesting call. So why is Vasileios Gkionakis turning bearish on the dollar yen exchange rate?

Market consensus

The market consensus at the moment seems to be that the dollar yen rate will increase due to a variety of protectionism policies announced by Donald Trump. The idea is that corporate tax cuts will encourage US companies to repatriate as much of their overseas earnings as possible which will strengthen the dollar. On the surface this seems a fairly straightforward argument but this is Donald Trump we are dealing with, a man who seeks controversy! Continue reading “Vasileios Gkionakis telling clients to short the dollar against the yen”

Ralph Acampora believes Trump rally is not over yet

Ralph Acampora predicitions

Affectionately known as the “Godfather of chart analysis”, Ralph Acampora has some very interesting news for investors. While not a fully-fledged fan of the new president he believes that current chart analysis suggests the Trump rally is not over and we could see a further 5% push in the short to medium term. This would put the DJIA at around 20,750 and the S&P 500 at 2370 which is a significant rise when you bear in mind the recent rally. So, is Ralph Acampora right to suggest investors have more reasons to be cheerful about Donald Trump?

Recent trading

While over the last couple of days we have seen a breakout from recent trends, just prior to that trading had been relatively benign moving in a relatively small band. Indeed this evening there is already talk of the DJIA index moving beyond 20,000 over the next few days. Chart analysis can be a very interesting indicator of future movement but as with investment in general nothing is fool proof. Continue reading “Ralph Acampora believes Trump rally is not over yet”

Don’t let your heart rule your head when investing

Should ground-breaking pharmaceutical companies be listed?

While many people speculate what makes a good investor the fact is that we are all very different, we have strengths and weaknesses, and we need to appreciate this. You should never invest in markets in which you have limited knowledge or limited interest because it will be almost impossible for you to read the market correctly. However, there is a much simpler way to maximise your investment returns which is quite simply, do not let your heart rule your head when investing

We all have our favourite stocks

Whether we admit it or not we all have our favourite stocks, favourite sectors and companies we like to trade. Many investors will focus on a limited number of volatile companies, get to know them very well and be able to read share price movements to their benefit. However, sometimes it is possible to get too close to a company and become detached from the cold hard decisions you need to make. Continue reading “Don’t let your heart rule your head when investing”