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Scratch. Wampum. Dough. Sugar. Clams. Loot. Bills. Bones. Bread. Bucks. Money. That which separates the haves from the have-nots. But what is money? It's everything if you don't have it, right?
Is it simply an agreed-upon unit of exchange for goods and services? $3.70 for a gallon of milk? Thirty bucks to cut your grass? Or, is it an intangible? Security or happiness - peace of mind. Let me propose a third option. Money as a measuring device. Money is, at its essence, th...
Is it simply an agreed-upon unit of exchange for goods and services? $3.70 for a gallon of milk? Thirty bucks to cut your grass? Or, is it an intangible? Security or happiness - peace of mind. Let me propose a third option. Money as a measuring device. Money is, at its essence, th...
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$Tesla (TSLA.US)$ Excited 🚀
Translated
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球球魚
voted
$Tesla (TSLA.US)$
Tesla's earnings are coming up. This is the next price catalyst for the ticker. If earnings surprise to the upside then they could be the one thing $Tesla (TSLA.US)$need to get out of this long-term downward trending price channel.
After seeing most of the market react very negatively after hours to Microsoft's earnings call, personally I would wait until Tesla's earnings are released before placing any bets.
On the long-term outlook Tesla is a great...
Tesla's earnings are coming up. This is the next price catalyst for the ticker. If earnings surprise to the upside then they could be the one thing $Tesla (TSLA.US)$need to get out of this long-term downward trending price channel.
After seeing most of the market react very negatively after hours to Microsoft's earnings call, personally I would wait until Tesla's earnings are released before placing any bets.
On the long-term outlook Tesla is a great...
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球球魚
voted
Hey mooers,
Welcome back to Mooers' insights, where we share knowledge and thoughts.
Last week, Weekly Buzz discussed "What is the joy of investing?". Let's see what mooers talk about!
Finding joy in investing not only makes it more fun but can help make one a better investor.
@HopeAlways
Like any endeavor, becoming an expert in the field of investing takes something that many people are not willing or able to - a lot of time and hard work. The be...
Welcome back to Mooers' insights, where we share knowledge and thoughts.
Last week, Weekly Buzz discussed "What is the joy of investing?". Let's see what mooers talk about!
Finding joy in investing not only makes it more fun but can help make one a better investor.
@HopeAlways
Like any endeavor, becoming an expert in the field of investing takes something that many people are not willing or able to - a lot of time and hard work. The be...
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$Tesla (TSLA.US)$
Is it 80?
Is it 80?
Translated
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球球魚
liked
In December, the Federal Reserve interest rate decision boots landed, investors began to focus on the Omicron mutation virus.
But Michael Wilson, Morgan Stanley's chief US equity strategist, believes the market is unprepared for a change in Fed policy.
The Fed may be beginning the long process of exiting its easy money policies, on which markets have long grown accustomed to relying.
While most major U.S. stock indexes remain near or at record highs, the sector rotation shows that the market has been considering such a shift by the Fed for months.
Shortly after the Jackson Hole meeting in late August, Chairman Powell first suggested tapering asset purchases before the end of the year, and he formally confirmed this message at the Fed's September meeting.
As Wilson notes, this fact has not been forgotten by the market over the past month, as investors have rotated out of the most speculative assets at a historic pace.
The question now, strategists at Morgan Stanley say, is "whether the Fed's policy shift is fully priced in, what areas remain vulnerable and where can investors find positive returns?"
Mr. Wilson has been watching valuations this year, and the most expensive stocks have faltered since the first quarter.
The strategist said the revaluation of U.S. stocks is now based on the equity risk premium (ERP) channel, not interest rates, because using current nominal or real interest rates to translate future cash flows could be a big mistake given the pace of inflation and the Fed's changing response function.
On the upside side, Mr. Wilson has been supporting value stocks since mid-March. In Morgan Stanley's annual outlook, analysts advised investors to focus more on large-cap defensive sectors rather than growth sectors.
The recommendation is based on the view that "the Fed and other central banks will begin to accelerate the exit of accommodative policies, which is bound to impact markets if not the economy."
Needless to say, growth stocks will be more vulnerable to this retrenchment than defensive stocks, given their much higher valuations.
Morgan Stanley strategists favor defensive sectors, arguing that policy tightening and the coming slowdown in economic growth could be worse than most expect.
The bank's two overweight sectors -- healthcare and real estate investment trusts -- have been doing well, and Morgan Stanley continues to be bullish on these two areas.
Morgan Stanley strategists also worry that the economy will slow more than most expect. While Omicron is part of the market's concern in the short term, Mr Wilson is more focused on the risk of a pick-up in supply, which could be compounded by waning consumption.
Consumer confidence remains at recessionary levels, largely due to higher inflation, which is expected to start showing up in spending in the first quarter of next year.
Mr Wilson concludes:
"This is the beginning of the end of financial repression; while a complete exit, as in the 1940s, is several years away, we believe the equity market will start discounting earlier, via the equity risk premium, which is better for value stocks than growth stocks."
$S&P 500 Index (.SPX.US)$ $Nasdaq (NDAQ.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Wells Fargo & Co (WFC.US)$ $Bank of America (BAC.US)$ $Goldman Sachs (GS.US)$ $Morgan Stanley (MS.US)$ $Citigroup (C.US)$
But Michael Wilson, Morgan Stanley's chief US equity strategist, believes the market is unprepared for a change in Fed policy.
The Fed may be beginning the long process of exiting its easy money policies, on which markets have long grown accustomed to relying.
While most major U.S. stock indexes remain near or at record highs, the sector rotation shows that the market has been considering such a shift by the Fed for months.
Shortly after the Jackson Hole meeting in late August, Chairman Powell first suggested tapering asset purchases before the end of the year, and he formally confirmed this message at the Fed's September meeting.
As Wilson notes, this fact has not been forgotten by the market over the past month, as investors have rotated out of the most speculative assets at a historic pace.
The question now, strategists at Morgan Stanley say, is "whether the Fed's policy shift is fully priced in, what areas remain vulnerable and where can investors find positive returns?"
Mr. Wilson has been watching valuations this year, and the most expensive stocks have faltered since the first quarter.
The strategist said the revaluation of U.S. stocks is now based on the equity risk premium (ERP) channel, not interest rates, because using current nominal or real interest rates to translate future cash flows could be a big mistake given the pace of inflation and the Fed's changing response function.
On the upside side, Mr. Wilson has been supporting value stocks since mid-March. In Morgan Stanley's annual outlook, analysts advised investors to focus more on large-cap defensive sectors rather than growth sectors.
The recommendation is based on the view that "the Fed and other central banks will begin to accelerate the exit of accommodative policies, which is bound to impact markets if not the economy."
Needless to say, growth stocks will be more vulnerable to this retrenchment than defensive stocks, given their much higher valuations.
Morgan Stanley strategists favor defensive sectors, arguing that policy tightening and the coming slowdown in economic growth could be worse than most expect.
The bank's two overweight sectors -- healthcare and real estate investment trusts -- have been doing well, and Morgan Stanley continues to be bullish on these two areas.
Morgan Stanley strategists also worry that the economy will slow more than most expect. While Omicron is part of the market's concern in the short term, Mr Wilson is more focused on the risk of a pick-up in supply, which could be compounded by waning consumption.
Consumer confidence remains at recessionary levels, largely due to higher inflation, which is expected to start showing up in spending in the first quarter of next year.
Mr Wilson concludes:
"This is the beginning of the end of financial repression; while a complete exit, as in the 1940s, is several years away, we believe the equity market will start discounting earlier, via the equity risk premium, which is better for value stocks than growth stocks."
$S&P 500 Index (.SPX.US)$ $Nasdaq (NDAQ.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Wells Fargo & Co (WFC.US)$ $Bank of America (BAC.US)$ $Goldman Sachs (GS.US)$ $Morgan Stanley (MS.US)$ $Citigroup (C.US)$
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Volatility for technology sector, the rest of the market is up.
I took the opportunity to buy $ProShares UltraPro QQQ ETF (TQQQ.US)$ & $Invesco QQQ Trust (QQQ.US)$ which has a positive correlation with nasdaq. I also double my stake on $UP Fintech (TIGR.US)$ pulling down my losses from 68% to 28%.
My watchlist (might average in)
$Alibaba (BABA.US)$
$Baidu (BIDU.US)$
$PayPal (PYPL.US)$
I took the opportunity to buy $ProShares UltraPro QQQ ETF (TQQQ.US)$ & $Invesco QQQ Trust (QQQ.US)$ which has a positive correlation with nasdaq. I also double my stake on $UP Fintech (TIGR.US)$ pulling down my losses from 68% to 28%.
My watchlist (might average in)
$Alibaba (BABA.US)$
$Baidu (BIDU.US)$
$PayPal (PYPL.US)$
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球球魚
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$AMC Entertainment (AMC.US)$ if you want to sell go ahead, because I trust Adam Aron will bring AMC back to life! ops already did but to the moon!
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