Sentiment Analysis of the Stock Market
The broad set of appetites, fears, and beliefs of those investing in and trading the stock market are referred to as market sentiment. This crowd psychology or tone of the market drives prices up and down. At its extreme, it is manifested by fear in falling markets and greed in rising ones.
Invest in Space X?
The United States is again launching astronauts from US soil to the International Space Station. Since the Space Shuttle program was retired, the USA had to pay Russia to launch US astronauts from the Baikonur Cosmodrome in Kazakhstan. The credit goes to Space X and eventually to Boeing as Space X has passed all of NASA’s tests, including a test flight with two astronauts to the Space Station. Boeing is fixing a glitch that has put them back a step or two. You can easily invest in Boeing, but can you invest in Space X? The quick answer is that you cannot invest directly in this private company but it is still possible to do so indirectly.
Is a High P/E Ratio Dangerous?
The P/E ratio is a time-honored way to value stocks but in today’s market P/E ratios are sky high. Is a high P/E ratio dangerous? The P/E ratio compares company earnings to its share price. Both forward and trailing P/E ratios are commonly used to assess stock valuation. Over the years, a stock that has a P/E ratio higher than other’s in its market sector is either expected to grow or is simply overpriced. The problem today is that so many stocks have high P/E ratios, which casts doubt on the value of this metric.
Are Covid-19 Vaccines Good Investments?
The new coronavirus has swept across the world, killing nearly a million people and making more than 30 million sick. The effect on the global economy has been devastating even though the US stock market is ignoring the economy. As investors look for profitable investments in this era of Covid-19, vaccine makers come to mind. There are a hundred potential vaccines under development and several in trials in the final stage before getting approved. The question for investors is this: are Covid-19 vaccines a good investment?
Fixed Income Investments
What are the best fix income investments in an era of low interest rates? It depends if you want income or security. We offer a few thoughts about how you could invest the fixed-income part of your investment portfolio. Because your approach to fixed income investments in this era of low or even negative interest rates will depend on your philosophy, we look at this issue from two directions.
5G Infrastructure Investments
No matter who wins the 2020 presidential election, federal spending on infrastructure is likely to increase. 5G infrastructure investments will be part of that. Much has been made of bridges, highways, and airports needing repairs, but a competitive America will need high-speed internet communications and that will come from 5G networks. Which 5G infrastructure investments should you look for as you choose profitable investments?
Market Sentiment Data
Although valuations drive stock prices in the long term, short term market movements are driven by sentiment. The stock market anticipates price movements. Positive sentiment is based on the belief that stocks will go up and negative sentiment is based on the belief that stocks will go down. By the use of market sentiment data, traders and investors find profitable points of entry into and exit from their positions. At the base, market sentiment is driven by fear of loss and greed for profits. These provide useful market sentiment data.
How Negative Yield Bonds Work
A bond has a negative yield when the investor collects less money when the bond is mature than they paid to buy the bond. In short, the bond issuer is paid for issuing the bond. The buyer of the bond is paying for holding the bond. The reasons for buying a negative yield bond are several.