Resilient Euro Despite the Deceiving Economic News
Sept. 06, 2017 /Yassine Maaroufi/ -- The EURUSD fell 1.42% from last week’s high of 1.2070 after weak economic data relative to the major European economies. However, the pair stayed on the same course and did not break the previous uptrend. The EURUSD has been gaining steam since the beginning of the year, switching gears in mid-April and mid-June to rise even higher.
Oil Prices Fail To Rebound Despite Favorable Conditions
Sept. 04, 2017 /Yassine Maaroufi/ -- West Texas Crude Oil (WTI) prices broke out to the downside. It closed at $47.35 on Friday, down 5.62% during August. WTI failed to rebound into its previous uptrend. The American produced crude futures have priced in the effects of hurricane Harvey that touched ground on the Gulf Coast.
Time Warner Trends Up Towards Acquisition Price
Sep 2, 2017 /Yassine Maaroufi/ -- Time Warner (NYSE:TWX) closed at $101.60 in the middle of a correction. The stock price has been rising range-bound since the beginning of the year, 7.23% from $94.75. It is trending towards the $107.50 per share acquisition price announced with AT&T.
Major Indices Entering a Correction Phase
Sept. 08, 2017 /Yassine Maaroufi/ -- The Standard & Poor’s 500, covering US large caps has been heading down since the beginning of August, branching out of its current bullish trend, a seven-month long rally. It has bounced back however two weeks ago. It has reached a high of 2480 points above the previous support line but without reaching the previous peak of 2490 points. It has closed at 2465 points right on the support line. Technically the index is at a turning point and could either rejoin the bullish corridor or start a correction. The latter is particularly possible following the string of weak economic data released last week regarding employment. This week’s economic news has confirmed the direction set by last week’s releases with retreating factory orders compared to the previous month. Additionally, rising unemployment claims have reaffirmed the fragile state of the jobs market. The NASDAQ Composite has been following the same path as the S&P 500 although with sharper moves and a higher volatility. The NASDAQ closed at 6393 points, closer to its previous peak of 6460 points than the S&P 500. The S&P 400 however has closed more clearly on the bearish side of the chart. The midcaps index has been developing a correction and seems to be encountering resistance in place of its previous support. It fell 4.23% from a peak of 1795 points to 1719 points after hitting a low of 1686 points. Small caps have had a different course until now. After the quasi-sideways movements during the whole year, it is finally moving. Similar to midcaps the S&P 600 is extending its arms downward. Small caps were the only market segment to have a negative performance year-to-date closing -0.47%. The NASDAQ outperformed the rest with a 17.76% rise followed by the S&P 500 with 10.14% and the midcaps with a low 3.00% growth. The US stock market has been affected by the arrival of hurricane Harvey, which hit the US Gulf Coast provoking huge floods in Houston and other places. The hurricane has impacted the energy industry, which is omnipresent in the region with oilrigs, offshore platforms, refineries and pipelines. Most energy installations were closed down or had their working rate reduced. The stock market as a whole has been impacted by the successful North Korean nuclear test. The incident is the last of a series of shows of force from the part of the North Korean regime. Markets are pricing in the possibility of an armed conflict and the threat of the enemy’s long-range missiles, which, according to estimates, can reach most of the US territory including Washington. Like its US counterpart, the Japanese stock market has been hit by the threat of North Korean missiles, one of which flew over Japan last week. This incident highlighted the weakness of Japan in the face of such weapons. The NIKKEI 225 closed at 19396 points 1.50% from 19691 after the North Korean attack. The South Korean stock market is in an even worse shape, tanking since mid-July. It goes down further with each new attempt by it northern neighbor. The KOSPI closed at 2319 points almost below its previous dip.
5 Ways to Invest in Stocks with Little Money
/Lydia Wanjiru/ -- Stock investments are a lucrative opportunity that anyone can venture into even with little money. Investors looking for cheap stocks to buy today can consider buying these 5 stocks: 1. Buy a mutual fund A mutual fund is an investment platform that is funded by the shareholders that trades in diversified holdings usually run by an asset management company. A mutual fund pools money from various investors to purchase securities such as stocks, bonds and more. Shares of a mutual fund are bought and sold by a fund family like the Fidelity, Vanguard or Charles Schwab. Buy a mutual fund with the lowest possible fees.
10 Common Types of Mutual Funds
/Lydia Wanjiru/ -- A mutual fund pools money from a variety of investors to create a portfolio of stocks, bonds, real estate, money market instruments or other securities. Some mutual funds concentrate on a single asset class such as stocks or bonds while others invest in a variety. Mutual funds are bought directly from the fund companies such as Vanguard, T. Rowe Price or Fidelity and more, unlike stock market where shares can be bought from one investor to another. A professional manager for the fund invests the money in different types of assets including stocks, bonds, commodities and other assets. Investors earn from the mutual funds through dividends on stocks and interest on bonds. You can invest in mutual funds with as low as $100 but the majority of mutual funds require a minimum initial investment of between $500 to $3000 and the institutional class funds and hedge funds require at least $1million or more. Mutual funds trade once per day, unlike ETFs.
3 Ways Stock Investors Make Money
/Lydia Wanjiru/ -- One sure way to build wealth is through stock investments. A stock is a share or a portion of a corporation’s ownership. Choosing the right stocks to invest in is a key factor to ensure that you get a solid return on your investments. Investing in shares requires a basic understanding of how stock investments work so that you can make an informed decision when you invest. You need to know how the stock investment will help you make money.
5 Key Variables to Consider Before Selecting the Stocks to Buy
/Lydia Wanjiru/ -- How do you identify the best and the most suitable stocks to buy? Majority of investors buy stocks based on a few things that they can understand such as the price of the stock. A group of other investors tend to invest based on a given emotional attachment to the company like them or their close relative is a client or an employee of that company. However, there are more variables that you should take into account before committing your money in a particular stock. You need to consider these 5 key parameters before you pick a stock to buy: 1. Price- earnings growth ratio The price earnings growth ratio (PEG) is derived by dividing the price-earnings ratio (P/E) by the prospective rate of growth. So, for example, if PE is 20 and the prospective growth rate is 10% then the PEG would be between 1.0 and 2.0 and it means that the PEG is stretched. Therefore, just because a company is growing rapidly doesn’t mean it is an ideal investment even though rapid growth often translates to high valuations Price Earnings (PE) ratios. There are past valuations that can be quite useful in evaluating the strength of the current valuation. 2. Relative strength index Another variable worth taking a keen interest in is the relative strength index. This is basically a measure of a stock’s price performance versus the current one at the market. For a variety of stocks, it ranges between 30 and 70 and the highest being the strongest performers. 3. Consistent Earnings Growth You can consider checking the stock growth consistency as it is an indicator of how the stock is performing. If it has shown a constant growth in the past, then it is also likely to continue the same trend in the future. This boosts investor confidence and you can always check the performance of the stock in the latest three years to find out the consistency of its performance before you settle on it. 4. Coefficient Variance The Coefficient Variance (CV) is a measure of the consistency of the analysts’ findings and earnings estimates. It usually ranges between 0-15 and a low CV of up-to 4 suggests that there is a reasonable consensus among the analysts. When the CV of a stock progresses further and goes beyond 4 then it means that the analysts have little confidence in their given estimates and thus that particular stock is more risky to buy. 5. Free Cash Flow The Free Cash Flow (FCF) is the cash that is usually left after deducting taxes, capital expenditures and paying all the debts outstanding. It means that if a company has Free Cash Flow (FCF) or a left-over of cash, it is retained and used as capital for further company expansions and business developments. A company that has a high free cash flow is worth investing in as that is an indicator that the company is likely to have or currently has a good stock performance.
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