Category: Market Outlook

The recent invasion of Ukraine by Russia resulted in severe economic sanctions by the Western world on Russia.

This coordinated international move has plunged many markets into mayhem, especially the energy market.

Many have started to compare this to the 1970s oil shocks, which resulted in dire economic consequences for the world economy.

As the Fed is going to start its rate hike cycle, might the markets rally as counter-intuitive as it may sound?

No, you haven’t got it wrong. Even though conventional wisdom tells us that whenever the US federal reserve hikes rates, the stock market falls. That’s what everybody thinks should logically occur.

Well, it’s no secret that markets are currently operating in the most uncertain environment where investors are already under the pressure of rising interest rates, inflation hitting new record highs and now the geopolitical concerns over Russia and Ukraine.

First, the US stock market reflects the economy and more. Existing economic conditions and historical ones are already priced into the stock market as old and current news. More importantly, the US stock market prices into current stock prices, future expectations of the economy.

It’s the question in everyone’s mind this week, what will happen to my investment portfolio if Russia invade Ukraine?

Well, it’s no secret that markets are currently operating in the most uncertain environment where investors are already under the pressure of rising interest rates, inflation hitting new record highs and now the geopolitical concerns over Russia and Ukraine.

First, the US stock market reflects the economy and more. Existing economic conditions and historical ones are already priced into the stock market as old and current news. More importantly, the US stock market prices into current stock prices, future expectations of the economy.

Did you know that the AAII (retail) sentiment survey results provided a rare signal on the 3rd February 2022, that was only seen 9 previous times in the past 35 years?

Traders and investors that have skin in the game should understand these concepts well to appreciate the stock market.

First, the US stock market reflects the economy and more. Existing economic conditions and historical ones are already priced into the stock market as old and current news. More importantly, the US stock market prices into current stock prices, future expectations of the economy.

There is a rule of thumb circulating around social media that when the U.S. The Federal Reserve starts hiking interest rates, it is in general, bad for the stock market.

In Economics 101, what is often taught in school is that if Central Banks want to curtail economic growth, one classic technique will be to increase interest rates. By increasing interest rates, the cost of borrowing for companies will increase, thereby making it more restrictive for companies to grow. Hence, the logic is that when companies are restricted, this surely is bad for listed companies in the stock market!

2021 was truly a year of great rotational confusion. The way money flowed across various themes and sectors in 2021, would have sent the most flexible minded trader and investor into a tailspin headache!

It’s the time of the year where wall street analysts are busy trying to offer their two cents worth in terms of predicting what 2022 might bring for the US stock market.

Many institutional investors, hedge funds and professional traders rely on their market outlooks to help them navigate and plan their 2022 trading and investing roadmaps.

The Quantitative Easing (QE) cycle that began following the Covid pandemic has been truly unprecedented.

Between March 2020 and February 2021, in a matter of only 11 months, many high flying growth stocks have quadrupled or grown by multiples, especially those that had benefited from the Covid-19 digitalisation acceleration process

There is a new Covid Variant that is making waves not only in mainstream media, but also the stock market.

This new variant is so ‘deadly’ it caused the Dow to tumble 900 points on the worst ever Black Friday in history since 1931. In reality this variant is so concerning to the stock market because it has created a lot of anxious chatter among medical professionals regarding a Covid 19 variant before.