With today's shock win surprise for Trump, gold is trading considerably higher as the market looks to safer investments to balance the unease at the prospect of an inexperienced and unknown entity running the US economy and country. As of around 6am EST, ABX is up over 7.5% higher in pre-market trading and gold is up over 2%. We can expect a large amount of volatility in commodities, currency and stock markets globally in the days, and weeks ahead. The VIX ETF closed up around 5% yesterday and we can expect more of a roller-coaster of a ride I am sure of that. Please return to your seats and fasten your seatbelts until the leader of the free world reassures us its safe to do so!
Thanks for your interesting analysis of this alcoholic drinks producer. You mentioned that the 3.5% dividend yield is enough reason to buy this stock. I would be wary of that. Higher dividends are not always the best thing for an invester. Why? Because companies with lower dividends means that they are injecting profits back into the company rather than sharing the profits with shareholders. What factors are more important are if this company can remain competitive in a highly competitive consumer market place. Is there growth potential in the long term? How will the weakness of the British pound affect export revenues for this British company?
As the pound continues to weaken beyond 20% of its pre-Brexit value, I believe we will see a lot of fear continuing to grip UK consumers. Since houses are one of the biggest investments anyone will make its no surprise that Brexit is causing the jitters. These fears are even more pronounced for British tourists trying to squeeze value out a diminishing pound, and even greater still for UK investors using sterling to buy property overseas. Will it turn around some day? Stiff upper lip as they say. The Brits have seen bigger disasters in their empire, or have they? Perhaps the worst is yet to come.
Perhaps Apple benefited from the Samsung Note debacle. Perhaps the Note's self destruction hurt Samsung's image and helped customers look to Apple's newest 7 as an alternative. Despite this unfortunate occurrence, and its vast war chest of cash, Apple is overly relying on the successes of only a few products, therefore it comes as a timely piece of good news that Apple confirmed plans to release a new version of its beloved Macbook. Is it enough to keep the company competitive? I think its just a matter a time before we see Apple missing its earning targets. Next Tuesday we will see.
Netflix is certainly on a powerful rebound after jumping over 20% in the past few days after reporting blowout subscriber growth. If price to earnings ratio is anything to go by, Netflix certainly stands out. Currently Netflix P/E is a huge 382. Putting this into perspective Apple's P/E is only 13.61. From these numbers alone one can perhaps predict the future growth prospects of the two companies and see the vast differences. I certainly wouldn't put these two companies in the same boat in terms of investment prospects. Apple is really the big question in particular. With shrinking demand for the Iphone and Ipad, and increasing pressure from much cheaper Chinese competitors I believe there's a high chance it will miss earnings this time around, watch out...
Would you consider this a good time to invest in a China ETF or is it perhaps too much of an unknown entity? One of the largest China ETFs is iShares China Large-Cap (FXI). It is only up around 1% year to date and among its largest holdings are: Tencent Holdings Ltd, China Mobile Ltd and China Construction Bank Corp. Am sure there are safer bets out there. Any thoughts?
There is a widely held belief that specific sectors are safer to be in during a market downturn, for example healthcare and utilities. Perhaps this is the case, but maybe some of the reasons many novice investors lose money on the stock market is because they don't diversify, they sell when a stock drops, and over invest in specific areas or stocks, and try to day trade for short term gains instead of staying in for the long haul. The most successful investors stay in a stock not because of increases in price but because of long term growth potential.
Alternative options to helicopter money for boosting the economy are perhaps by lowering taxes and /or adding incentives in the consumer sector. Give the people "deals" and they will come out and buy more. This worked with the auto sector where manufacturers gave large trade in incentives, it worked in a similar way with appliance trade in programs. Next stop, lower taxes on gasoline, air travel, and large appliances. I foresee people will spend more, adding more money to the economy. This might not be enough to change the big picture but it will provide an initial boost of stimulus. Worth a try, no?
Ask not what #Brexit can do for you but what you can do for Brexit! Fifteen executives from Lloyd's Bank just set a tremendous vote of confidence in their bank and the UK economy by buying almost 1 million shares between them. Headlines today stated that Lloyd's executives buy 829,000 shares in post-Brexit show of confidence. But like the English weather, it doesn't stay sunny for long. Preceding that announcement Lloyd's came out with their less optimistic news that they would be laying off over 600 employees as a cost cutting program (any connection to Brexit, maybe?). What's the upshot? If you are worried about the pound and the UK economy lets all start buying British goods! One area sure to see a boost is foreign tourism in the UK. As the pound weakens foreigners get more bang for the buck, that will eventually bring in increased revenues to the economy. A weak pound does have its benefits!
If self driving cars really are the future, then this is great news for all three of these companies. Not to be outdone by Mercedes Benz, #BMW is now investing deeply in driverless tech. This area of technology is now starting to get so crowded that soon we'll need advanced software to navigate our way around the packed playing field. Hard to say who's leading the race, but back in August 2013 the Mercedes-Benz S 500 Intelligent Drive drove fully autonomously over 60 miles between the German cities of Mannheim and Pforzheim. Who else is here in the room? Google, Toyota, Audi, Chrysler, Daimler, Delphi, Nissan and more. Watch this space, or let your car do it for you!
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Daily Markets Forecast Outlook - Monday Nov. 7
With today's shock win surprise for Trump, gold is trading considerably higher as the market looks to safer investments to balance the unease at the prospect of an inexperienced and unknown entity running the US economy and country. As of around 6am EST, ABX is up over 7.5% higher in pre-market trading and gold is up over 2%. We can expect a large amount of volatility in commodities, currency and stock markets globally in the days, and weeks ahead. The VIX ETF closed up around 5% yesterday and we can expect more of a roller-coaster of a ride I am sure of that. Please return to your seats and fasten your seatbelts until the leader of the free world reassures us its safe to do so!
Diageo Is Not That Strong Of An Investment Right Now
Thanks for your interesting analysis of this alcoholic drinks producer. You mentioned that the 3.5% dividend yield is enough reason to buy this stock. I would be wary of that. Higher dividends are not always the best thing for an invester. Why? Because companies with lower dividends means that they are injecting profits back into the company rather than sharing the profits with shareholders. What factors are more important are if this company can remain competitive in a highly competitive consumer market place. Is there growth potential in the long term? How will the weakness of the British pound affect export revenues for this British company?
The UK Housing Market Has Become More Interesting After Brexit
As the pound continues to weaken beyond 20% of its pre-Brexit value, I believe we will see a lot of fear continuing to grip UK consumers. Since houses are one of the biggest investments anyone will make its no surprise that Brexit is causing the jitters. These fears are even more pronounced for British tourists trying to squeeze value out a diminishing pound, and even greater still for UK investors using sterling to buy property overseas. Will it turn around some day? Stiff upper lip as they say. The Brits have seen bigger disasters in their empire, or have they? Perhaps the worst is yet to come.
How Will Apple's Next Report Influence Its Share Price?
Perhaps Apple benefited from the Samsung Note debacle. Perhaps the Note's self destruction hurt Samsung's image and helped customers look to Apple's newest 7 as an alternative. Despite this unfortunate occurrence, and its vast war chest of cash, Apple is overly relying on the successes of only a few products, therefore it comes as a timely piece of good news that Apple confirmed plans to release a new version of its beloved Macbook. Is it enough to keep the company competitive? I think its just a matter a time before we see Apple missing its earning targets. Next Tuesday we will see.
Buy AAPL, CRM, NFLX, NVDA And BAC Now Before It’s Too Late
Netflix is certainly on a powerful rebound after jumping over 20% in the past few days after reporting blowout subscriber growth. If price to earnings ratio is anything to go by, Netflix certainly stands out. Currently Netflix P/E is a huge 382. Putting this into perspective Apple's P/E is only 13.61. From these numbers alone one can perhaps predict the future growth prospects of the two companies and see the vast differences. I certainly wouldn't put these two companies in the same boat in terms of investment prospects. Apple is really the big question in particular. With shrinking demand for the Iphone and Ipad, and increasing pressure from much cheaper Chinese competitors I believe there's a high chance it will miss earnings this time around, watch out...
Despite Strains From Slower Economic Growth, China Is Achieving Some Of Its Rebalancing Goals
Would you consider this a good time to invest in a China ETF or is it perhaps too much of an unknown entity? One of the largest China ETFs is iShares China Large-Cap (FXI). It is only up around 1% year to date and among its largest holdings are: Tencent Holdings Ltd, China Mobile Ltd and China Construction Bank Corp. Am sure there are safer bets out there. Any thoughts?
What To Buy When The Stock Market Goes Down
There is a widely held belief that specific sectors are safer to be in during a market downturn, for example healthcare and utilities. Perhaps this is the case, but maybe some of the reasons many novice investors lose money on the stock market is because they don't diversify, they sell when a stock drops, and over invest in specific areas or stocks, and try to day trade for short term gains instead of staying in for the long haul. The most successful investors stay in a stock not because of increases in price but because of long term growth potential.
The Helicopter Paradigm
Alternative options to helicopter money for boosting the economy are perhaps by lowering taxes and /or adding incentives in the consumer sector. Give the people "deals" and they will come out and buy more. This worked with the auto sector where manufacturers gave large trade in incentives, it worked in a similar way with appliance trade in programs. Next stop, lower taxes on gasoline, air travel, and large appliances. I foresee people will spend more, adding more money to the economy. This might not be enough to change the big picture but it will provide an initial boost of stimulus. Worth a try, no?
What’s In Brexit For You?
Ask not what #Brexit can do for you but what you can do for Brexit! Fifteen executives from Lloyd's Bank just set a tremendous vote of confidence in their bank and the UK economy by buying almost 1 million shares between them. Headlines today stated that Lloyd's executives buy 829,000 shares in post-Brexit show of confidence. But like the English weather, it doesn't stay sunny for long. Preceding that announcement Lloyd's came out with their less optimistic news that they would be laying off over 600 employees as a cost cutting program (any connection to Brexit, maybe?). What's the upshot? If you are worried about the pound and the UK economy lets all start buying British goods! One area sure to see a boost is foreign tourism in the UK. As the pound weakens foreigners get more bang for the buck, that will eventually bring in increased revenues to the economy. A weak pound does have its benefits!
Mobileye Jumps Ahead Of 'Game Changing' Alliance With Intel, BMW Being Unveiled
If self driving cars really are the future, then this is great news for all three of these companies. Not to be outdone by Mercedes Benz, #BMW is now investing deeply in driverless tech. This area of technology is now starting to get so crowded that soon we'll need advanced software to navigate our way around the packed playing field. Hard to say who's leading the race, but back in August 2013 the Mercedes-Benz S 500 Intelligent Drive drove fully autonomously over 60 miles between the German cities of Mannheim and Pforzheim. Who else is here in the room? Google, Toyota, Audi, Chrysler, Daimler, Delphi, Nissan and more. Watch this space, or let your car do it for you!