Category: Trade Ideas

For almost a decade, Alibaba Group Holding embodied China’s economic miracle, sustaining a dizzying pace of growth and approaching trillion-dollar valuations with splashy forays into every corner of the internet.

From its IPO price of $93, $BABA soared ~249%, hitting an all-time high of $320!

But in the last two years, the shares of the e-commerce giant have been on a downhill ride, and the company lost about a third of its worth!

Recently, the stock again skidded to its 52-week low levels, ending the last month 21.4% lower.

The latest reason is that the SEC added $BABA to its list of “potential delisting candidates,” meaning its shares potentially won’t longer trade in the US markets.

So, is Alibaba a buy or sell at the current levels?

Has the recent stock decline already factored in the delisting news?

Or is $BABA poised for another leg down? Let’s find out!

“Stocks are a safer investment than x asset” is a sentence you probably do not come by a lot.

This is especially the case when most traditional financial metrics label stocks as one of, if not the riskiest asset one can have. However, this has been the case for a long time. So, is there something newer and fancier?

Companies like Airbnb respond to almost every macroeconomic event imaginable, whether it’s rising interest rates, skyrocketing inflation, geopolitical concerns, or even a pandemic!

Consumer discretionary expenditures like vacations tend to take a hit during such economic downturns.

What do Mickey Mouse, the Gucci bee and Snoop Dogg have in common? Besides being animal-themed, all three are coming to a metaverse near you – a virtual world with the possibility of us working, playing and socialising in an online ecosystem.

You may be kicking yourself for not investing in Netflix, which returned 6,000% over the last decade. You sold out of Amazon too early or missed out on the 10-fold return Google produced over the last decade.

When it comes to investing, one strategy is to identify very promising sectors that are likely to benefit from structural tailwinds, which provide fundamental support for strong upside.

The past 10 years have been very favourable to a handful of large cap US tech stocks. They have significantly outperformed the market and some have achieved trillion dollars market valuation.

Investors that have stayed true to FAANG (Facebook, Apple, Amazon, Netflix and Google) have had very rewarding long term returns.

However, many analysts are predicting that while FAANG stocks should continue to stay strong and loved, they may no longer be able to sustain previously market-beating returns.

In this new day and age, there are certain industry sectors that are emerging and very likely to benefit from digitalisation acceleration and climate change drivers.

When it comes to investing, one strategy is to identify very promising sectors that are likely to benefit from structural tailwinds, which provide fundamental support for strong upside.

There remain many skeptics on green or climate change related investments. Some of these concerns relate to whether green investing is sustainable, or perhaps just a fad.

Others relate to fears surrounding this area being very new and young, and therefore is likely to be very volatile and uncertain, which is typical of investments in infancy areas.

The keenly awaited US inflation readings will be out tonight 21:30 SG time!

The core Consumer Price Index (CPI) in the US is expected to increase at a whooping annualised rate of 6.9% in November, up from a 6.2% recorded in the previous month.

Why this headline is important is because if it printed this high, it would be the fastest CPI growth rate gain we have seen in the last 31 years!

The oil and gas industry is in peril. Suffering from a demand issue due to the coronavirus situation coupled with strong rhetorics between Saudi Arabia