Cannabis Stocks Spike Following Reports Marijuana Will Be Reclassified As Less Dangerous Drug
Should I even evaluate US stocks anymore?
Here’s the pickle. We all know that more money is in passive funds than active funds these days which do not really care about valuations. They are merrily chasing the stock market as it moves.
Besides the billions of dollars flowing into retirement funds every two weeks, the year by year flow of money into passive instruments has also grown. is your prime example. It will be bought based on its market cap relative to the rest of the market, no one cares why its overvalued.
To add, isn’t the stock market a federally protected asset? Many Americans depend on their portfolios to fund their retirement, so I’m sure the government has measures in place to ensure a big crash doesn’t happen. We have tools to help foresee crashes and at that point the government would do something to avoid a crash.
So the question is, are metrics like PE, D/E, CAPE even useful anymore?
Are US tech stocks a buy in 2024?
The market continues to see all-time new highs with tech stocks becoming more popular than ever before. In fact, people have started leaning toward tech SPDR that outperformed S&P 500’s total return in the last year. For what felt like forever, AI was treated like the middle child but for more than a decade, the underperformance of the tech sector has been serving opportunities for long-term buyers.
Although April battled with concerns of inflation and the risk sentiment was mostly negative on tech names, we all know that tech companies are building our future. So whether it’s a phone maker or an AI company, are tech stocks a buy in 2024?
Pharma stocks after approval
I’ve noticed a pattern among pharma stocks that seems to be a common thing but I don’t get it. A lot of the time when a product in the pipeline gets FDA approved, the price of the stock goes down. This seems counterintuitive to what should happen in theory. What can be the cause behind this? It’s not a rare occurrence either so I feel like there must be a more practical explanation for this.
If you were restricted to only 3 stocks for the next 5 years, who would you pick?
My picks are:
APPL: Great roots, reliable innovation, outstanding product pipeline, cash on hand, solid customer base. I mean why not? Services businesses are evergreen and they could also jump into other categories that are profitable.
TSLA: Still a lot of upside. Their evaluation may come under scrutiny at times but they continue to impress and innovate. They are definitely more than just a car company. Again solid roots since they are tied up to AI and high tech projects. Not to mention there is nobody close behind them.
AMZN: Goods and services, cloud, AI, software, and more. They are at the forefront of every industry. This AI fuelled tech giant racked up 25 billion USD in sales in 2023 and is reported to be ramping up its operations.
Honorable mentions $ADBE, $MSFT, $NVDA
What does it mean when a company buys its own shares back?
Let’s take Apple for example. They just announced they will be buying 110 billion USD worth of their own stock back. Is this a good thing for a company? Lets say if I owned stocks in Apple, I'm curious how this would pan out for either party.
I want to understand this from the perspective of shareholders. There is a lot of info out there talking about stock buybacks from the company’s stand point.
Fundamental vs. Technical Analysis
Fundamental and technical analysis are two of the most commonly used methodologies to study markets and securities. How and when you use them is a matter of personal preference. Both methods provide detailed insights into a company’s underlying business as well as its position in the broader economy. In simple words, fundamental analysis focuses on the quality of the stock, whereas technical analysis is more about the study of market trends. Let’s break it down further.
Fundamental Analysis
Fundamental analysis is a great tool for determining the growth potential of a company. It relies on metrics such as P/E ratio, dividend yield, debt-to-equity ratio, ROE (return on equity), etc. to identify stocks fitting certain criteria. Historically, investors have used fundamental analysis for long-term investments as it offers detailed reports on every financial aspect of a company. Their primary tools include:
Financial Statements
Economic indicators
Interest rates
News and updates
Technical Analysis
Technical analysis, on the other hand, bypasses the fundamental evaluation of a company and instead hunts for pre-studied trends that might foretell future price shifts and volume changes. Investors review historical data and volumes to determine how the price and volumes will shift over time. The main tools used here are:
Technical indicators
Volume analysis
Stock chart analysis
Studying support and resistance
Trend analysis
So, is one better than the other?
One might argue that exploiting market trends (what technical analysis does) to profit isn’t very sustainable, but reality says otherwise. Ideally, you want to combine fundamental and technical analysis as leaving out one might cause you to miss important clues. Begin by assessing intrinsic values such as financial statements and when designing an exit strategy, you can rely on technical analysis.
This approach might give you a more realistic picture of the market and its behavior allowing you to fine-tune your expectations and strategy. Nevertheless, it’s always better to have more information than less whether you eventually end up using or not. Not to mention, these techniques will enhance your market knowledge over time.
Whether you are a growth or value investor, market study can be a tricky joint these days given how diverse the market has become. Furthermore, years of accumulated data gives us an edge compared to a decade ago when most companies were in their infancy. What other tools do you use to identify stocks? Let’s hear your thoughts!
A Bad Day For Coffee Drinkers Everywhere (Or A Good Day If You're A Hater)
International coffee chain is down more than 10% in after market trading with these reports:
EPS $0.68 actual vs Est. $0.80 expected (15% miss)
Sales $8.56B vs Est. $9.13B (6% miss)
Are too many people making their coffee at home?
Should I even evaluate US stocks anymore?
Here’s the pickle. We all know that more money is in passive funds than active funds these days which do not really care about valuations. They are merrily chasing the stock market as it moves.
Besides the billions of dollars flowing into retirement funds every two weeks, the year by year flow of money into passive instruments has also grown. is your prime example. It will be bought based on its market cap relative to the rest of the market, no one cares why its overvalued.
To add, isn’t the stock market a federally protected asset? Many Americans depend on their portfolios to fund their retirement, so I’m sure the government has measures in place to ensure a big crash doesn’t happen. We have tools to help foresee crashes and at that point the government would do something to avoid a crash.
So the question is, are metrics like PE, D/E, CAPE even useful anymore?
Are US tech stocks a buy in 2024?
The market continues to see all-time new highs with tech stocks becoming more popular than ever before. In fact, people have started leaning toward tech SPDR that outperformed S&P 500’s total return in the last year. For what felt like forever, AI was treated like the middle child but for more than a decade, the underperformance of the tech sector has been serving opportunities for long-term buyers.
Although April battled with concerns of inflation and the risk sentiment was mostly negative on tech names, we all know that tech companies are building our future. So whether it’s a phone maker or an AI company, are tech stocks a buy in 2024?
Pharma stocks after approval
I’ve noticed a pattern among pharma stocks that seems to be a common thing but I don’t get it. A lot of the time when a product in the pipeline gets FDA approved, the price of the stock goes down. This seems counterintuitive to what should happen in theory. What can be the cause behind this? It’s not a rare occurrence either so I feel like there must be a more practical explanation for this.
If you were restricted to only 3 stocks for the next 5 years, who would you pick?
My picks are:
APPL: Great roots, reliable innovation, outstanding product pipeline, cash on hand, solid customer base. I mean why not? Services businesses are evergreen and they could also jump into other categories that are profitable.
TSLA: Still a lot of upside. Their evaluation may come under scrutiny at times but they continue to impress and innovate. They are definitely more than just a car company. Again solid roots since they are tied up to AI and high tech projects. Not to mention there is nobody close behind them.
AMZN: Goods and services, cloud, AI, software, and more. They are at the forefront of every industry. This AI fuelled tech giant racked up 25 billion USD in sales in 2023 and is reported to be ramping up its operations.
Honorable mentions $ADBE, $MSFT, $NVDA
What does it mean when a company buys its own shares back?
Let’s take Apple for example. They just announced they will be buying 110 billion USD worth of their own stock back. Is this a good thing for a company? Lets say if I owned stocks in Apple, I'm curious how this would pan out for either party.
I want to understand this from the perspective of shareholders. There is a lot of info out there talking about stock buybacks from the company’s stand point.
Fundamental vs. Technical Analysis
Fundamental and technical analysis are two of the most commonly used methodologies to study markets and securities. How and when you use them is a matter of personal preference. Both methods provide detailed insights into a company’s underlying business as well as its position in the broader economy. In simple words, fundamental analysis focuses on the quality of the stock, whereas technical analysis is more about the study of market trends. Let’s break it down further.
Fundamental Analysis
Fundamental analysis is a great tool for determining the growth potential of a company. It relies on metrics such as P/E ratio, dividend yield, debt-to-equity ratio, ROE (return on equity), etc. to identify stocks fitting certain criteria. Historically, investors have used fundamental analysis for long-term investments as it offers detailed reports on every financial aspect of a company. Their primary tools include:
Financial Statements
Economic indicators
Interest rates
News and updates
Technical Analysis
Technical analysis, on the other hand, bypasses the fundamental evaluation of a company and instead hunts for pre-studied trends that might foretell future price shifts and volume changes. Investors review historical data and volumes to determine how the price and volumes will shift over time. The main tools used here are:
Technical indicators
Volume analysis
Stock chart analysis
Studying support and resistance
Trend analysis
So, is one better than the other?
One might argue that exploiting market trends (what technical analysis does) to profit isn’t very sustainable, but reality says otherwise. Ideally, you want to combine fundamental and technical analysis as leaving out one might cause you to miss important clues. Begin by assessing intrinsic values such as financial statements and when designing an exit strategy, you can rely on technical analysis.
This approach might give you a more realistic picture of the market and its behavior allowing you to fine-tune your expectations and strategy. Nevertheless, it’s always better to have more information than less whether you eventually end up using or not. Not to mention, these techniques will enhance your market knowledge over time.
Whether you are a growth or value investor, market study can be a tricky joint these days given how diverse the market has become. Furthermore, years of accumulated data gives us an edge compared to a decade ago when most companies were in their infancy. What other tools do you use to identify stocks? Let’s hear your thoughts!
A Bad Day For Coffee Drinkers Everywhere (Or A Good Day If You're A Hater)
International coffee chain is down more than 10% in after market trading with these reports:
EPS $0.68 actual vs Est. $0.80 expected (15% miss)
Sales $8.56B vs Est. $9.13B (6% miss)
Are too many people making their coffee at home?