Fifty years ago China was an agrarian society and today it is the largest industrial power in the world. Fifty years ago China was preoccupied with walling itself off from the world and today it is seeking influence and power across the length and breadth of the world. The problem as seen from the viewpoints of many countries is that China seeks to dominate and control instead of working with other nations. The ten year risk from China to your investing has to do with China’s power peaking and the possibility that its aging leader, Xi Jinping, will believe that […]
Value stocks are leading the charge as the economy emerges from recession caused by the Covid-19 pandemic. What are the best value stocks for 2021? To make the best picks in this category you need to know what constitutes a value stock and how value stocks differ from growth stocks. Growth stocks often sell for higher prices than their current fundamentals would seem to support because investors want to position themselves for long term growth and profits. Value stocks are often companies that generate steady profits over the years but don’t excite growth-conscious […]
Interest rates are edging up. For the time being, stocks are staying ahead of bonds in the investment war. Historically, stocks earn 3.3% more than bonds over time. However, investors have gotten used to a much better ROI in the stock market over the last decade. We are looking at risk-adjusted investments for the next decade interest rates go up and the stock market adjusts. Many investors have chosen to invest by buying ETFs that track the S&P 500. This puts them at risk in a stock market that will perform differently over […]
What are the investment implications of the Biden agenda? President Biden will introduce a stimulus plan aimed at defeating the covid-19 epidemic and driving the US economy to an impressive recovery. How will it affect your investments? Because the Democrats will control the White House and both houses of Congress, we expect initial Biden proposals to pass. We have written about investing during the Biden administration and the potential for a Biden bull market. Now that the next President has laid out his plan with the details, there is speculation that foreign direct investment […]
Much investment advice tells you to put your money into a basket of US stocks and hold on. The argument for investing in stocks is that over the years, the US stock market has routinely created wealth for those who stay invested. However, how does that work out when you look at the profits of long term investments and inflation? After all, the reason we save and invest is to maintain our purchasing power in retirement and to increase it generally over time. The question is, does long term investment work?
Does Long Term Investment […]
The pandemic has driven business and social communications onto the internet. This movement was already well underway but has been hastened by the need for social distancing. Companies that work in this sector have benefitted from the current crisis while face to face companies like restaurants, entertainment, and travel have suffered. Although grocery stores and pharmacies have stayed open, home delivery has boomed. The pandemic is not going to suddenly stop and many of the new ways of doing things are efficient. Thus we do not expect a return to “normal” when the virus lets up. Rather we expect to see a new normal and there is where we will find many covid-19 era investment opportunities.
Stochastics has been a useful tool in predicting stock prices since it was developed by George Lane 75 years ago. This tool assesses how closing price and price range relate or a given time frame. Stock investors and traders can use a stochastic trend to determine if they should buy or sell their securities. This tool is always used in conjunction with methods like important moving averages in determining when is the best time to buy or sell.
What “Stochastic” Means
The dictionary definition of stochastic is something that has a pattern or distribution which is […]
Trend analysis is an effective way to predict equity price movements. But, it requires a good understanding of the market and its movements. And, for this tool to result in profits, it needs to be applied to quality investments trading on major exchanges and not cheap penny stocks that are prone to the “pump and dump” type of hype. We refer to this as quality trend analysis.
Purpose of Trend Analysis
The reason to use this approach in investment and trading is to predict future prices. The rationale is that by finding a beginning or […]
When the coronavirus epidemic started to spread we wrote
about investing in pharmaceuticals and the coronavirus. We noted
that a vaccine is a long way off and that a better short term investment
strategy would be invest in companies that make hand sanitizers, general
cleaners, masks, and other immediately necessary items. While it will take some
time (12-18 months) to devise and produce a vaccine, medicines to treat people
with coronavirus could be available sooner. Such medicines would not make the
pandemic go away but they would alleviate suffering and reduce the number of
deaths from this modern day plague.
What Sorts of Treatments Are Possible?
Modern science has found […]
The stock market has been going up ever since the dark days of the Financial Crisis. And, many investors have done extremely well. Meanwhile, contrarians have been predicting everything from a market slowdown to a crash for years. Shorting stocks is popular with many who see the market and many individual stocks as ready to tank. The continual stream of market doom and gloom reminds of how the famous American author Mark Twain was reported to have died. He was later quoted as having said, “The report of my death was an exaggeration.” […]