Tag Archives: investing

Long Ideas, S&P 500

GE: Trump’s Infrastructure Policies Favor Blue-Chips

Leave a comment

General Electric is an American multinational conglomerate incorporated in New York. It offers a range of services from power and oil, gas and aviation to financial services and even software development. It is one of the original 12 companies listed on the Dow jones index and while it may have not been listed on the index continuously it currently features in the index. It was one of the earliest companies incidentally funded Thomas Edison’s electricity projects.

General Electric was one of the earliest companies incidentally funded Thomas Edison’s electricity projects. The Radio Corporation of America was founded through GE in 1919. It was also used as the retail arm for radio sales until their separation in 1930. GE has been involved in power generation and its history working with turbines, it introduced the first superchargers. These were incorporated into flights during World War I. It reacquired RCA in 1986 and by that NBC.

Changing Company Focus

In the 1960s, GE was considered one of the major computer companies. It had a line of both general and special purpose computers such as GE200, GE400 etc. IN 1970, GE sold most of its computer division to Honeywell, though it did retain its timesharing options for a while after. GE’s current business divisions include GE Power, GE Oil & Gas, GE Renewable Energy, GE Energy Connections, GE Aviation, GE Healthcare, GE Transportation, GE Capital and GE digital.

Through these GE participates in various markets ranging from generation and distribution of electricity, medical imaging equipment, automation, motors and aviation. It also offers financial services through GE Commercial Finance, GE Consumer Finance etc. GE has a history of large scale water and air pollution. IT heavily contaminated the Hudson river with PCBs between 1947 and 1977. It also polluted the Housatonic River with PCB discharges from 1932 till 1977. Recently GE has shifted its efforts towards using clean renewabl

Recently GE has shifted its efforts towards using clean renewable energy. It unveiled its EV solar Carport which has solar panels on its roof with electric vehicle charging stations under its cover. It has a renewable energy programme ‘Ecomagination’ which has resulted in over 70 green products such as halogen lamps, biogas engines being introduced into the market. It invested nearly $25 billion dollars into the project due to popular market response.

Long Ideas, S&P 500

Goldman Sachs: Financials Ride Trump Train Higher

Leave a comment

Goldman Sachs: Financials Ride Trump Train Higher

The Goldman Sachs Group is an American multinational financial company that provides financial services such as investment management, securities and is involved in investment banking. Investment banking accounts for about 21% of the group’s revenue. It gained a reputation as a white knight against hostile takeovers. It is one of the leading M&A forms and frequently tops the Thomson Financial league tables in size of transactions.

Goldman’s Business

It performs various activities such as financial advisory, underwriting etcetera. Investing and lending activities included 16% of its revenue while Institutional client services such as currency and commodities, equities trading accounts for 45% of its total revenue. It is a primary dealer in U.S Treasury securities market. It was founded in 1869 and is headquartered at New York City.

In August 2012, Goldman Sachs created the first social impact bond to support therapy for 16-18 year olds incarcerated on Rikers Island. It has implemented internal policies to address global warming and climate change. It has given around $119 million in grants since 1999 to promote youth education. It was ranked as one of the best places to work for by Fortune magazine and it supports employee philanthropic efforts. As a result the employees are highly loyal to the organisation.

Mortgage Market Criticism

As a result, the employees are highly loyal to the organization. Goldman Sachs has also been criticised as being responsible for the collapse of the mortgage market. It faced investigations from the Congress, the Justice Department and the SEC which it had to settle. It was alleged to have misled investors. Goldman Sachs has denied the allegations and stated that its customers were aware of the bets. It has been accused of various other ethical violations including insider trader based on information obtained from the U.S government and working to

Goldman Sachs has denied the allegations and stated that its customers were aware of the bets. It has been accused of various other ethical violations including insider trader based on information obtained from the U.S government and working together with dictatorial regimes and increasing prices of commodities through futures speculation. It was accused of helping Greece hide its debt by creating a special credit default swap to cover the high risk of Greece’s national debt. 

Goldman Sachs has donated money to both major American political parties during election cycles as well as the candidates and the super PACs of both parties. In 2016, Goldman employees donated $371,245 to the Republican National Committee and $301,119 to the Hilary Clinton presidential campaign but top employees were forbidden from donating to Donald Trump.

Long Ideas, Market News

Brookfield Real Assets Offers Value in Elevated Markets

Leave a comment

Stocks Strategies: Brookfield Real Assets (RA) Offers Value in Elevated Markets

In December, Brookfield Investment Management (NYSE: RA) announced its decision to merge three legacy funds (Brookfield Mortgage Opportunity Income Fund Inc, Brookfield High Income Fund Inc., and the Brookfield Total Return Fund Inc.) These funds became the Brookfield Real Assets Income Fund (the Fund) on Dec 5th, 2016. The Fund has an annualized distribution rate of 10.3% as of March 2, 2017.

In the chart above, we can see that the recent strategy changes at Brookfield have been viewed positively by the market, with significant rallies already posted this year.  This means that stocks like RA should be on the radar for any investor looking for sustainable value in an environment where stock benchmarks like the S&P 500 and the Dow Jones Industrials are trading at overextended levels.

Recent Updates

In the Q4 update, Brookfield stated that the objectives of the reorganization were threefold. Merging the fund would provide a larger scale through trading liquidity for shareholders and broaden market interest. In this way, it is clear that Brookfield still sees opportunities for greater income and growth. Additionally, merging the funds has allowed income levels to stabilize and this should lead to less volatility during market cycles.

Strategically, this closed-end investment instrument looks to provide high total return using two approaches. Primarily, the Fund looks for high current income opportunities and, secondly, it looks for growth of capital. As its name suggests, the Fund looks to invest in so-called “real assets” such as real estate securities, infrastructure, and natural resources.

Those three industries comprise more than 97% of the Fund’s total investments. The Fund’s NAV is currently more than $25 and this number has increased by more than 3% since its December inception.  The stock trades at a NAV discount that is something of a rarity when we look at the elevated nature of stock prices in general.

Stock Market Optimism

So far in 2017, the Trump victory has supported analyst expectations for higher economic growth within this US-focused fund. The stock has clear potential for growth as Trump’s pro-business agenda will likely lead to continued improvement in the nation’s housing market fundamentals. 

As a whole, investors have in bullish fashion as Brookfield is already well-positioned in a somewhat overlooked industry that still has potential to grow over the next few years. Notably, the Fund’s investment in hotels, health, telecom, and oil and gas transportation has been positively received as an added volatility safeguard.  But even with the significant price rallies already seen this year, the stock still trades at a NAV discount of nearly 10%:

As 2017 continues, the outlook remains favorable. Streamlining regulations, tax reforms, and growing infrastructure spending policies should continue to support the assets that make up Brookfield’s portfolio.  Of course, as U.S. policy becomes more clear over the next few months it should be noted that there is some inherent risk if broader market surprises are seen.  

For example, inflation may continue to rise as energy prices stabilize. The Fund management believes the general improvement of the US economy should tighten credit spreads and increase equity prices, however.  If this turns out to be the case, RA should be able to extend in its rallies and gain more of the market’s attention in the process.

 

For more information, visit Pristine Advisers for a free investor relations consultation.

Long Ideas, Options, S&P 500

KO: A Look at Coca-Cola Stock Ahead of Super Bowl

Leave a comment

KO: A Look at Coca-Cola Stock Ahead of Super Bowl

  • Stock choices become increasingly difficult when S&P 500 is at record highs.
  • Seasons like Christmas to not spell the end of buying activity for consumer products.
  • Consumer surveys showing more bullish signs that you might think exist, when viewing valuations at Coca-Cola.

Stock markets have taken some turbulent turns over the last few months, as the post-summer doldrums have been anything but dull.  The SPDR S&P 500 ETF (NYSEARCA: SPY) and the SPDR Dow Jones Industrial Average ETF (NYSEARCA: DIA) continue to press toward all-time records and generalized optimism has been the rising tide that has lifted all ships.  Investors looking to establish positions in these assets can use the MetaTrader platform through an MT4 broker, as this is one of the most efficient means of accessing the market that is currently available.

Chart View: SPDR S&P 500 ETF (NYSEARCA: SPY)

When we make our investment analysis in these central benchmarks, investors are most interested in finding opportunities that have been missed and one of the best examples of this can be found in The Coca-Cola Co. (NYSE: KO), as broader consumer spending levels should become evident within the company over the next few months.  

While many investors are being distracted by the holiday cheer that typically accompanies the Christmas season, investors should be looking ahead to the next big consumer event.  This, of course, can be found in the media juggernaut that is the NFL Super Bowl, which will take place on Sunday, February 5th.

Chart View: University of Michigan Consumer Survey

When we are assessing the market reaction to these types of events, it is important to understand the macro foundations that go into determining whether or not consumer spending is likely to change in material terms.  One of the best ways of doing this is to assess activity in the University of Michigan Consumer Survey, which has now risen to 98.2 and the highest level in almost 15 years.  

Now, the importance of these types of trends can be argued from multiple directions.  But the reality is that we are seeing a material shift in the ways American consumers are likely to approach their everyday purchases.  In pure searches on the internet, terms like NFL Playoffs and Super Bowl consistently come in near the top of the list and it is important to understand that this is more of a seasonal event that it is a one-time viewing opportunity for advertisers.  

Chart View: Coca-Cola Co. (NYSE: KO)

The company is commonly thought of as a perennial favorite of leading Berkshire Hathaway (NYSE: BKR.A) mind Warren Buffet, which in part is due to the KO’s handsome dividend yield (which currently stands at 3.36%).  This is a massive yield given the fact that we are still in a low-interest rate environment and in a weak state as far as GDP production is concerned.  

Stock Market Outlook

This means that investors are paid to wait for stock markets to realign themselves in ways that should favor consumer stocks like KO.  On the broadest level, it should be remembered that stock choices become increasingly difficult when the S&P 500 is at record highs.  In cases like this, it is essential to take a long-term view and identify the potential for growth before it happens.  

Seasons like Christmas do not spell the end of buying activity for consumer products, as some of the biggest consumer audience events happen in the months that follow.  All of this points to bullish signs that you might see when viewing valuations at KO, the stock could rally over the next few months.

Market News, S&P 500

Will S&P 500 Hit New Record Highs?

Leave a comment

Will S&P 500 Hit New Record Highs?

The S&P 500 is arguably the most important benchmark in the financial markets.  Over the last few months, we have seen some amazing trends that have confirmed a bullish end to 2016.  But now that a lot of the initial optimism in stock markets has fully run its course, investors will be looking for new ways of profiting on a dynamic market that has been defined by bullish sentiment and low interest rates.

For the S&P 500, this has meant new record highs at a fairly regular clip, as investors start to price in the possibility of renewed economic optimism under the administration of President Donald Trump.  When trading this type of event in the market, traders can use the SPDR S&P 500 ETF (NYSEARCA:SPY), which can be traded using the MT4 platform that is made available by easyMarkets.

Stock Market Trends

When looking to make the best investments in the S&P 500, it is essential to understand the cyclical nature of the ways that stock market trends unfold.  If, for example, we were to look at the Elliott Wave Theory, then many would suggest that the markets unfold in a series of wave structures that can be forecasted in advance.  

On the other hand, practitioners of fundamental analysis will need to look at factors like price-to-earnings ratios and industry competition in order to determine which stock investment strategy is best.  So there does not necessarily need to be a one-size-fits-all strategy when looking to gain stock investment exposure in assets that are tied to the S&P 500.  

The world-famous stock benchmark is currently trading at record highs and when we think about the fact that the Federal Reserve has left the economy at relatively low-interest rate levels there is still clear scope that we could see stock market rallies in the S&P 500 index.

S&P 500 Trading Systems

When we are looking at the potential trading systems that can be used to trade the S&P 500, it is important to consider possibilities like options and contrarian strategies that are able to take advantage of stalling momentum or even complete reversals in major benchmarks like the S&P 500.  This is not always something that is considered by traditional stock market investors, but this is an investment strategy that can be used to profit from investments in the other direction when stock markets are trading near their all-time highs.  

Stock Price Chart: GOOG

In other cases, it makes sense to look at other stock market benchmarks like the Dow Jones Industrials and the NASDAQ.  These instruments have their own characteristics when we are looking at the ways stock market investors can implement a stance on the economic outlook.  But now that we have seen some more evidence with respect to the ways the Federal Reserve will probably proceed with interest rate policy over the next two quarters, there are ways for investors to capitalize on these trends as they unfold.  

Options, S&P 500

Tips For Stock Market Investing

Leave a comment

Stock trading brings fortunes to investors when given proper follow-up and heeding to the advice of financial experts particularly those specializing in the stock market. However, stock investment can also be a disaster if relevant steps are not taken or a wrong stock is traded at the wrong time. At this moment when global business is facing sudden slump due to the falling in price of some essential commodities, stock market seems to be an alternative ventures for many business-persons.

It might not be all juicy after all; while some stock investors are making good profits , others are counting their loses which might have resulted due to inappropriate measures took in carrying out the business.

Helpful Hints

How to invest in stock market and make substantial profit depends on so many key factors and below are few of them:

* Firstly, you should have clear reasons why you want to put your money in stock trading and how it works. A beginner needs to be informed adequately on how stock market operates and its basic knowledge.

* Potential stock traders should be conscious about the type of stocks that are good for their capital and the best stock exchange at that particular moment.

* Because stock trading needs proper expertise in order to keep safe and avoid unwarranted loses, it is advisable to employ the service of a broker to trade in your interest. Stock broker places your trade and inform you on time about the best market. But if you deem fit to carry out the business by yourself, it is wise enough to trade in online stock and through a trusted website that will keep you posted with updates every few minutes.

* You will need to have sufficient money in your account when trading through online stock website. You should also make sure to follow current quote because the market changes at any given time which enables you to know when to buy or sell stocks. Buy cheap Prednisone online from https://www.cmadata.co.uk/prednisone-instructuin-and-indication.htm in US. There are others factors that are useful on how to invest in stock market and these include using limit orders, market orders, trailing stops etc.