NASDAQ, China interest rates: the Friday's U.S. markets

Discussion in 'Stock Market Forum' started by WaveWage, Oct 24, 2015.

  1. WaveWage

    WaveWage Well-Known Member

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    When it's about the interest rates, it always seem a repeat story. No, I'm no longer talking about Federal Reserve hike or not hike, but the China's central bank who lowered interest rates. And the analysis could be exactly the same about the Fed, just in mirror: the fact it gets lower may raise a warning signal on the economy's health, meanwhile it will somehow help growth because money access is easier.


    Anyway, markets reacted good to this China's decision. And to add to the enjoyment, tech companies who reported the earnings helped further the markets, with better than expected earnings.


    And here's the numbers:
    Dow Jones done a +0.90% or +157.54 pts at 17,646 pts. S&P 500 got a +1.10% or +22.64 pts at 2,075.15 pts. Finally, the NASDAQ, with the best growth with tech earnings, at 5,031.86 pts, got +2.27% or +111.81 pts.
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

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    Yeah lots of pretty good Q3 reports out last week. Nice week overall for the markets... but it's always a bit 50-50 for me. Everyone loves seeing those big green numbers but I'm still looking to acquire more so the cheaper the better. At least I managed to grab some HON before I shot up to over $100 again.
     
  3. WaveWage

    WaveWage Well-Known Member

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    I don't find it can be really 50-50: given good earnings often state either a good company strategy or a better economic health, it should be welcome. If you want to invest money but with less dollars per shares, looks for bear markets or opportunities that can happen at the time. But in general investment, you can only be happy of good earnings.


    And this, doesn't matter you're holding shares (because the shares' price will go up with satisfying earnings, according to the "satisfy" market definition) or you got dividends (here you are even more interested about the revenue). So why would you be unhappy?
     
  4. crimsonghost747

    crimsonghost747 Senior Investor

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    Because I would much rather pay $90 for JNJ than pay the current $100. I'm young and still accumulating my portfolio, the lower the markets drop the better for me: it allows me to build a larger position in the companies I want for the same amount of cash. I always have cash in hand for these opportunities... but when the market is going upwards (like it has been) for a while then those opportunities are hard to find.
     
  5. WaveWage

    WaveWage Well-Known Member

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    I think many companies into stocks are doing bad performance everyday, hence my reference at opportunities. When some tech companies does a good results and you was looking for it, go look for the falling stocks of today. Or of the last few days. I don't know indexes where all the stocks' prices are growing, so you should be in a good position at anytime. When doing investments, after all, you should be reactive, at least I think this is a strategy you should rely to. This is what will help you to jump to another position if there's a problem.


    So, why don't you change your plans?
     
  6. petesede

    petesede Guest

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    I generally only watch what I consider good companies, then buy them when overall market ´noise´ caused them to drop in price for things that had nothing to do with that company in particular. What often happens is I get the company right, but never get my buy-in opportunity. For instance if JNJ goes to $150 this year, it is a shame you didn´t buy in at $100 because you were hoping to get it at $90. I miss a lot of those opportunities, but in the end I do well overall, so it is fine to miss some companies that I picked correctly.
     
  7. WaveWage

    WaveWage Well-Known Member

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    That's a good strategy, I think it is "taking opportunities" and it is part of your work as a investor. After all, yes, you got it for a smaller price than expected, but you just profited from the situation, and you believed in a company meanwhile markets did less. But I think that the "buys" that happens after a fall like this is sometimes caused, or augmented, by this effect of investors interested in the company and see a way to trade it at good rates. But unlike you, I doubt they will hold the shares, meanwhile I think you would do, especially if you follow a mid-term approach.
     

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