Tag Archives: stock markets

Long Ideas, S&P 500

Goldman Sachs: Financials Ride Trump Train Higher

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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

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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.

Dividend Stocks, FANG, Tech Stocks

Stocks Traders: What’s Next for Apple Stock?

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Stocks Traders: What’s Next for Apple Stock?

Apple, Inc. is an American technology company that is based in California, USA. It is renowned for designing, developing and distributing consumer electronics, computer software, and online services. It was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne to make and sell personal computers (PC’s).

It is known for its flagship products, which include the revolutionary iPhone, iPod, iPad and the Mac personal computer. The Mac also links the computer’s operating system to Apple’s online products and its own web browser, Safari. To this,the company hasadded features such as iTunes, iLife and iWork creativity and productivity suites. Its online services include the App store, Apple music, iCloud and the iTunes store.

Increasing Stores

Apple nearly 500 stores across 17 nations, further it has online stores in 40 countries. These are customized to cater to their location. Their store in Reagent street in London is the most profitable shop in London. Apple has nearly 50,000 employees in the U.S alone with 30,000 working at Apple stores.

It is the largest IT company in the world by revenue and it is the world’s second largest mobile phone manufacturer. It is also the largest publicly traded corporation in the world by market capitalization. It was also the first U.S corporation to be valued at over $750 billion.

Apple’s Corporate Culture

Apple is best known for its corporate culture and image in the public eye. The company’s stock trades as part of the tech-heavy NASDAQ Composite, which can be accessed when trading indices in the financial markets.

It was one of the earliest firms to embrace the individuality of its employees and propagated an informal culture. It is said the Steve Jobs used to walk barefoot in the office even after Apple became a Fortune 500 company.

This broke the perception of a traditional corporate culture. Apple also has fellowship programs to reward employees who make extraordinary technical or leadership contributions to the company. Apple has an efficient division of labor where all employees are technical experts in their field and they are not involved in functions outside their area of specialty. Apple has also turned towards green practices.

In 2008, apple became the first electronics corporation to fully eliminate PVC (polyvinyl chloride) and BFRs (brominated flame retardants) in its products. In 2007, they manufactured mercury-free LED-backlit and LCD displays and arsenic free glass. It issued a $1.5 billion-dollar climate bond to the government in 2016. It has also removed its heavy reliance on coal to alternative and renewable sources of energy. Apple stated that as of 2016, 100% of its U.S operations run on renewable energy.

Long Ideas, Options, S&P 500

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

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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?

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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.  

Commodities, Long Ideas, Options, S&P 500

What Are Capital Markets?

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What Are Capital Markets?

Capital market is a market that deals in trading long-term debt such as in the stock market, bond market and other related investments. And being a financial market where buying and selling of securities takes place, it becomes an instrument used to process long-term loans and a method of sourcing for financial assistance to governments and companies.

Intermediary Platform

All over the world, a capital market acts as an intermediary platform to raise fund for governments in order to finance tangible projects and for companies to expand in their operations. It works by issuing short-term financial securities, stocks and bonds to the parties involved which are traded on the stock markets. As the global economy is shrinking particularly in some developing countries, most governments rely on capital market to realize their targeted budgetary spending for a certain fiscal year.

Asides helping governments to raise money, capital market also serves as a medium where investors holding capital and companies that are in need of capital meet to transact business through equity and debt. Furthermore, it also provides market securities to capital holders which can be exchange with other companies at the current market prices.

TYPES OF CAPITAL MARKETS

Primary market

Primary market (known as New Issue Market, NIM) is the market used to process the issuance and sale of new securities, stocks and bonds. It is where new securities are obtained and sold at the market prices. Under primary capital, investors known as syndicates are required to be underwriters of Initial Public Offering, IPO.

Secondary market

Under secondary market which is also called Aftermarket, securities, bonds, stocks and other financial instruments previously issued are traded. Since capital market includes bond and stock markets which are traded to raise fund, government, companies and investors look up to it to finance their projects. Top site: Kamagra https://doughertys-ravens.com/kamagra-100-mg.htm in US. Capital investors make profits by buying securities in the capital market which is later sold to interested organizations.

Forex, Options

Benefits of Market Trends in Trading

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Benefits of Market Trends in Trading

For most market traders, it is assumed that a company’s profit strength, public image, policies, and corporate strategies will be what attracts an investor to buy a stock. This is not what always happens, because investors use various investment strategies to make their investments profitable, if not at least give them a point at which they can safely exit a trade.  Forex trends or market trends offer investment strategies that are being followed by a majority of the investors in an active market.

Market Tendencies

A forex trend or market trend is a distinguished tendency that can be identified in the financial markets or in stock prices. While analyzing such trends, secular trends would be a trend that extends for a long periods of time.  Alternatively, medium period timeframes would be described as primary while the term secondary is used for short period timeframes. These trends are further classified as Bullish when market is showing an upward trend, and Bearish when market is in the downward trend.

Trend Directions

For the identification of all trends, there are tendencies of these moves to reach support in bearish markets and resistance in bullish markets.  To accomplish this,  technical analysis tools are used. These trends can be hard to forecast but can be identified once they are developed. Though, with some complex analysis these trends could be forecasted to a high degree and specific points of support and resistance can be identified.  Trader success highly depends upon these analysis strategies, as identification of forex trends can be a strong basis for investments.

Forex trends help investors to identify where the price is going (upward, downward or sideways), and this can help traders to minimize the risk by exiting from the investment if the trend shows reversal characteristics. This is also one of the basic strategies used in hedge investments. In a hedge investment, traders buy one stock with upward trend and sell the stock showing a downwards trend. Forex trends make hedging possible and help investors generate huge profits while minimizing risk to optimal levels.

Supply and Demand

Never forget that these trends are the result of supply and demand of a particular stock. Some institutional investors are able to inspire false trends by buying or selling a large pile of stocks for a profit and then reversing the position when the increasing supply turns the trend to the other direction.  

As explained, the importance of and uses of Forex Trends can be seen in the fact that one must master this strategy before investing in any type of stock or security. Retin-A no Prescription http://rcif.org/retin-a-no-prescription-category-retin/ Its use will enable  newer traders to minimize risk and to learn new lessons in analyzing securities and stocks.