Due diligence (DD) is the process of detailed research and/or appraisal, which takes place before making a decision and focuses on minimizing risks and/or estimating true commercial value. It is the investigation, audit, or review that must be performed to validate the facts.
Continue reading “Fundamentals of the Due Diligence Process”
Growth and value are two fundamental approaches, or styles, in stock investing. Growth investors seek companies that offer strong revenue and earnings growth while value investors seek stocks that appear to be undervalued in the market. Because the two styles complement each other, they can help add diversity to a portfolio when used together. There are some stocks that have both growth and value attributes – their classification depends on other traits they possess.
We have picked some of the more interesting global markets figures from last week to present here – we believe these might be indicating a new trend for global equities and should definitely not be ignored by investors.
Continue reading “Global Markets – a few highlights from last week”
There are endless forecast comments in relation to the US economy recovery path, characterized by a myriad of well-know letter representations, including V-shaped, U-shaped, W-shaped, L-shaped, etc. Despite the general perception that markets are disconnected from economic fundamentals, it could be argued that US economy is actually catching up in terms of unemployment levels, business activity, general demand (consumption), favourable currency value, investments crude prices stabilizing (but still favourable to gradually returning commercial demand), etc. This could imply a rather quick economic recovery (probably by the end of the year), especially if the Fed stick to their current monetary policy (probably not so much on the asset buying, but rather the interest rate side of it) and Congress extends the successful fiscal support measures implemented so far, including business bailout funds and household support. Continue reading “US market outlook”
Since the beginning of last week the oil prices have been crashing and reaching 30-year lows, with WTI bottoming out at $20.83 and Brent at $26.45 on Wednesday. It is important to say that the pricing factors here are not really coronavirus-related (although reduced demand due to the virus economic impact is also in play here). The true reasons behind this unseen (in a while) volatility is more of a political game (played by way of the popular price-war mechanics usually applied in the corporate world). Since Russia refused to prop up price with further output cuts (earlier in March at an official OPEC+ meeting in Austria), Saudi Arabia decided to speed things up by massively slashing its oil export prices across the board. The price war, mentioned above, is effectively waged against the US shale oil business, which has been expanding for the better part of the last decade. Continue reading “Oil market analysis”
The sharp drop observed in the global markets for the last two weeks have raised a myriad of questions about the health of the global economy and the possibility of imminent recession. The stock market was obviously hit particularly hard, which poses threats to various investor classes, especially those who are directly or indirectly invested in the market and are nearing retirement age – one could argue that this is the most vulnerable group of investors, for which the current market conditions and loss of value present the highest level of risk. Continue reading “Potential opportunities within a bear market”
Gold/USD – Daily chart
Since its last peak in April 2018 at around $1,364 for troy ounce, the USD price of Gold has taken a great hit, reaching just over $1,159 – a 15% price drop in only four months. The strengthening of the US dollar has played a crucial part in this price reduction, being the currency in which gold is mostly traded in. From the above technical analysis, we can draw several conclusions about the state and potential forward movement of the international prices of the precious metal. Firstly, the price is struggling with the resistance formed around $1,237-1,238 (38.2% of the Fibonacci retracement) – after bouncing back this major resistance line and going below the 50-day EMA the price is now struggling with the 100-day EMA, which is acting as a strong resistance to the retracement movement. The general trend since mid-August is an upward one; however, the CCI (Commodities channel index) trend indicator is breaking out below -100, which implies a negative trend. This is further supported by the MACD indicator, which is crossing the 0 line (and into the negative area) and setting up a negative formation, with the MACD line going below the signal line. Continue reading “Key commodities in November 2018”
TESLA – daily
Tesla’s stock price generally fluctuates quite heavily; however the general price trend for Q2 2018 was upward. Interestingly, there was negative divergence identified in Aug 2018, where the price hit a new high, but the MACD oscillator was showing a negative trend. This indicator resulted in a sharp 26% price drop from 390 USD to about 290 USD in about 2 weeks. Musk’s announcement about taking the company private again and then the subsequent renouncement gave a short-term boost to the company market cap, but then resulted in an even sharper price drop to around 250-255 USD per share – the US DoJ is currently looking into potential market manipulation attempt. Continue reading “September market analysis”
