Chris Versace is the editor of PowerTrend Brief — a FREE, weekly electronic newsletter. He also writes PowerTrend Profits, a paid monthly newsletter that helps individual investors profit through buying shares of companies poised to win big in the 8 PowerTrends, as well as writes the PowerTrader trading service that seeks to deliver short-term gains using stocks, ETFs and options. Chris has been ranked an All Star Analyst by Zacks Investment Research. He also appears regularly on radio and has been quoted in the Wall Street Journal, Investor’s Business Daily and many other publications.
So what did sway the market mentality? The notion the Federal Reserve may hold off finishing its quantitative easing (QE) tapering efforts.
As the stock market skids lower this week after several speed bumps have emerged in the global economy, there is one that could be more than a bump. Not to be a fear-monger, but according to the World Health Organization (WHO), the Ebola virus is killing 70% of the people who contract the disease.
With carbonated soft drinks accounting for significant pieces of revenue at Coca-Cola, PepsiCo, Cott Corp., Dr. Pepper Snapple and others, these companies are facing a pain point, plain and simple.
There is no doubt the Alibaba IPO was a hot transaction not only was it the largest-ever IPO, but the shares quickly catapulted up to close their first day of trading at $93.89, a 38% gain from the companys offer price of $68 per share.
While large, established corporations are often able to afford the immense legal and accounting costs necessary to comply with Washingtons web of regulations, its smaller business that take the hit.
While I could ask you about money, odds are you would have an idea of what it is (currency) and how its used (transactional payments, saving and investing). A much better question to ask is if you think you have enough money...
Money. A simple word that, if you arent careful, can cause you a lot of problems. If not you, then maybe for a family member or a close friend.
How did investors get behind the shares at the right time? By understanding what the business was truly worth.
One of the easiest and simplest metrics that investors use to screen for, as well as value, stocks is the price-to-earnings ratio, better known as a stocks price-to-earnings (P/E). Of course, on its face, a P/E is nothing more than a snapshot in time, but what if I told you it was far more complicated than that?
The pullback also allowed me to recommend a new position to my subscribers, one that will benefit from a sleeper product being deployed by Apple (AAPL).
As you sit back and sift through the data, you’ll also notice that even though the stock market is setting new highs, the S&P 500 is up only 7.5% year to date. Even if the stock market replicated that return in the back half of 2014, it would mean a total return of 14-15%.
That’s the biggest difference between a photo and a movie — one is a snapshot of a moment in time, while the other is a story that unfolds over time. If you were a buy-and-forget-it investor, your style would resemble something like a photograph.
Remember that investing is a process, and only by performing this autopsy-like analysis will you understand what went right and why.
What do Apple (AAPL), Starbucks (SBUX), Ford (F) and General Electric (GE) all have in common? Their businesses are built on churning out thousands and thousands of products each and every week. To be successful, they have to deliver products that meet or beat consumer expectations time and time again.
If the Fed’s forecasts for 3% GDP growth across the current quarter and in the back half of the year pan out, it means the economy would grow at roughly 1.5% in 2014.
One of the biggest mistakes I see both institutional and individual investors make is to rely on either one data point or only one data source to make their investing decisions.
We are barreling toward the end of the June quarter, and that means we are nearing the halfway point for the calendar year. I know it’s hard to believe...