What’s far more important is how investors reacted to the Fed’s outlook and their decision to increase interest rates. After the rate hike decision, US bond yields spiked, almost clearing 3%. But even before bond yields reach that 4% market, there’s one group of stocks that could fall regardless. Some believe 2018 could be the tipping point for big US tech.
This morning, Commonwealth Bank of Australia [ASX:CBA] has dropped by 1.03% in share value. They have been consistently dropping for an entire year. Last April, they were trading at $87.40 a share, now they are only trading for $75.01. Commonwealth’s…
This scandal has seen billions wiped off of Facebook’s value. But I’ll bet most sellers today are simply looking a few quarters into the future. The data leak might cause more users to stop using Facebook. As a result, user engagement could also fall, making it less attractive to advertise on Facebook. But if you were to take the long-term view, Facebook’s shares might be worth buying.
Westpac Banking Corporation [ASX:WBC] have been consistently decreasing in share value for almost a year. Why? Find out here...
Today, ANZ [ANZ:ASX] have had a small rise in share value, growing by a mere 0.14% They are now trading at $28.005 a share, while sitting on a market cap of $81.12 billion and enterprise value of $77.7 billion. Currently…
If there’s a growing industry with profits abound, hundreds of companies look to pile in. Just one slip-up might give competitors an edge to take a share of the market. That’s why most profitable companies see returns fade over time. Profits are competed away. The same is true for investors. They follow returns. Whether you invest passively or actively, following just one rule can keep you out of a world of trouble.
Why is time so important? I’m sure you’ve heard about compounding, the eighth wonder of the world. It’s compounding that has made long-term investors like Buffett billionaires over time. The longer time drags on, the bigger the gains become.
It’s far easier to buy ‘the market’ and just sit on the couch watching Netflix waiting for retirement. But what if you had a learning machine pick the stocks for you, literally? Well you can. It’s called the EquBot, and it could teach us something about stock picking. The bot is an artificial intelligent system, designed to pick stocks.
Aussie stocks bounced back strongly yesterday, and are set to open flat today, in a sign that the concern over a trade war is overdone. Perhaps Trump’s team have done their homework. Perhaps they now see that a ‘spend as much as you want’ policy in government doesn’t quite gel with ‘let’s reduce our trade deficit’.
This is why Grant and others have been saying the 35-year long bond bull market is at an end. The biggest participant in the market (the Fed) is no longer propping up bond prices. Grant believes US 10-year treasury bond yields could reach 4.5%. Such an increase in bond yields would cause millions of investors to flow out of stocks and into bonds.