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.
3 Mistakes to Avoid When You Invest in Stocks
Oct. 19, 2017 /Lydia Wanjiru/ -- Investing in stocks is one of the best ways to build and grow wealth. Although all investments carry some degree of risk, investing in stocks can result in great gains if done appropriately.
How Trade a Small Trading Account in the Forex Market
There are many traders in the forex world who often blames the forex market and their account deposit for their failure. But in reality, your trading account deposit or the forex market has nothing to do with you a failure. You are not making a profit in the forex market only because you are not maintaining a strict trading discipline in the forex market. In order to trade the market successfully, you need to have very precise knowledge of the forex market. In this article, we will discuss how we can trade small trading account and become profitable in the in the forex industry.
5 Simple Steps On Investing In Stocks
Sept. 28, 2017 /Lydia Wanjiru/ -- According to a recent survey by bankrate.com, only 26% of Americans below 30 years are investing in stocks. Lack of financial knowledge was a topmost reason why most millennia’s are not investing in stocks besides lack of finances. Lack of information was another reason cutting across all age groups.
6 Major Types of Stocks Diversification
/Lydia Wanjiru/ -- Diversification is a risk management strategy and a key parameter to consider before you invest in stocks. It is a technique that plays a major role in mitigating risks by allocating investments among various securities in industries, geographical regions and more. Diversification mitigates unsystematic risk events in a portfolio. It is basically compared to “not putting all your eggs in one basket” and aims to maximize returns by investing in different stocks that would react differently to the same event. US stocks are exposed to market and economic forces in the U.S and they will react differently when exposed to the same events. To build a diversified portfolio, you need to know the various types of diversification available. Here are 6 types of diversification of your portfolio: 1. Individual company diversification You can diversify your portfolio by buying a mix of individual company’s assets. This helps to hedge you against a potential loss should one company stock fail or reduce in value. Investing in a variety of stocks issued by a company can hedge you against the risk of volatility or losing your capital in the event one particular stock performs poorly. For example, you can achieve diversification through investing in different index funds. 2. Industry diversification You can also diversify by buying stocks across multiple industries in the economy. This can help you to mitigate the risk of losing your capital if a company fails or performs poorly. Different companies can react differently to the same event and the more diversified your portfolio is, the safer you are if one is impacted negatively. 3. Asset class diversification Asset class diversification involves buying across different classes of assets such as equity, debt, and commodities. These include government bonds, treasury bills, shares, mutual funds, Exchange Traded Funds (ETFs), real estate investments trusts (REITs) gold, cash among others. Investment in a portfolio can also include options, derivates like futures and forwards and physical investments like land & real estate. When you combine a variety of assets, you reduce the overall risk of an investment in a portfolio. 4. Strategy diversification You can also derive superior returns over time compared to a market-cap weighted index if you employ different strategies also called risk factors or smart beta. A mix of these factors which include value, small-cap funds, large-cap funds, momentum, high quality and more can help reduce the risk exposure by a significant percentage. 5. Geographic and region-based diversification You can diversify your portfolio internationally if you buy a mix of stocks across different countries and cities in the world. Foreign stock investments can help you to take advantage of currency fluctuations. This also provides a cushion of protection against losses faced by one country’s’ economic downturn. 6. Time-based diversification It is also wise to consider timing when investing in stocks. This involves using dollar-cost averaging which hedges you against poor timing investments decisions and investments. This can involve choosing stocks based on long-term, medium-term and short-term investment strategy.
New Treasury Data Analysis Confirms New Markets Tax Credit Generated Over One Million Jobs in America's Most Distressed Rural and Urban Communities
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