The situation is misleading - which direction the markets will choose
7 reasons that may need to re-evaluate the current situation in the markets
1. Monetary expansion and budgetary profligacy: The last few years have been characterized by them, there are quite a few sectors that benefited from it. At present, the monetary expansion is in the midst of a break, and it is hard to see that budgetary spending goes on forever. It is reasonable to assume that there will be a decline in demand in certain sectors, which will lead to companies that are sensitive to this add this that Companies suffering from rising manpower and raw materials costs have raised prices - the rising trend, along with the slowdown, may cause more consumers to avoid further purchases2. The return on production inputs: a trend of rising wages at the expense of return on equity, for industries in which the wage component of the expenditure is particularly large and will be impaired.
3. Change consumer tastes and preferences: You can see a trend of switching to less branded and less expensive products, a trend that will adversely affect companies with high profits coming from a brand building. This is happening today, adding to this the revolution of online shopping on the small physical stores and The power of the common man to stimulate or advertise a product through social networks and you have a tough and challenging competition for all manufacturers.
4. Surplus production capacity: The low-interest rate has led many companies to push more and more production or distribution capacity. This is true for factories, but also for commercial areas, logistics and what is not. This is a classical cyclicality that repeats like a wheel.
5. Regulation Government policy and public pressure: There are sectors in which in the past, high profitability was made possible by regulatory and mitigating circumstances.
There seems to be more and more public pressure to improve consumer status in front of them and this does not do well for their profits.
6. Geopolitical and structural problems in various governments around the world: Europe: Italy, France, UK – Brexit, US and Asia, and middle east The clouds thickness of course.
East vs. West - New vs. Old, Security Warming and Emissions, Not Positive Job Positions To say the least, markets and the desire to take risks to expand
7. Trade wars between superpowers - see China and the United States, Europe in the picture
Add militant activism, both on the part of the leaders and the people, with the Pike News approach, and anyone who does not think like me is a traitor, and you have a recipe for a dish that might burn.
a stock that can hint us what is to come in the markets - keep in mind that there may be a situation of V SHAPE in markets - how do you will know this ... 1999 again in the headlines
stock markets forecast |
stock markets analysis |
Just quick look on one of the big STOCK to get some ideas
Amazon.com, Inc. (NASDAQ: AMZN )
If we take Amazon stock and analyze it as a definite market indicator, we can see a very interesting view
I take this stock because it can be seen as important alternative accrued in the past and moves are going to happen in the stock markets: the first option is: markets expected to make a V-shaped and from there the big decline will come- if 1780 price area will break up again and stay above this level This will symbolize the positive direction for markets !
The second option is continued declines down ( Amazon fil the gap equal to NASDAQ 100 to be tested 4800+_ points for my opinion )
AMZN analysis |
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