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Thursday, 22 October 12:25 (GMT -05:00)

Stock and commodities markets

Will U.S. Stock Market Grow This Year?

The American stock market has reached another crucial strange. The forthcoming macroeconomic stats may trigger a major move in any of the 2 directions. International experts say that the future market reaction will depend on a number of macroeconomic stats as well as several events. However, the current bias seems to be bullish since at this point, there are no major reasons to expect another stock market crash within the next 12-18 months.
Over the period of early October - the end of 2018, S&P 500 lost around 15,6% but given the uptrend that preceded the mentioned downtrend, the overall annual performance in 2018 turned out to be -8,2%. The index started 2018 in the green zone. In particular, over the first 8 days of the year, S&P 500 gained 2,85% and reached 2580 points. At this point, international experts are trying to figure out whether this was a temporary recovery or the beginning of a new rally.
In reality, the bears sound really convincing. For starters, they still take into account the risk of the Fed raising the key interest rates this year. Since early 2018, the Fed has already implemented 4 interest rate hikes (from 1,5% all the way up to 2,5%). Every time this is happening, this is bad news for the stock market, so the market starts going down.
At the same time, the skeptics are talking about the possibility of higher inflation rates in the USA. For those of you who don't know, the inflation rate is directly related to the interest rates since curbing inflation is the key reason for tougher monetary policies pursued by the Federal Reserve. In January - November 2018, the inflation rate increased from 2,1% up to 2,5%.
The next argument to take into account is the statement about the reversal of the so-called yield curve of American 
T-bonds. In early December, the 3-year U.S. T-bond yield increased the 5-year one. Stating from 1955, the yield curve has always indicated a forthcoming recession in the USA. However, in post cases, it was the change in the spread between the 2-year and 10-year bond yields that indicated the recession. For now, everything is fine with them.
At the same time, international experts name another reason to be concerned. In particular, they say that the current bullish cycle in the U.S. stock market has been abnormally long. The bears say economic cycles last for 10 years, but this statement should be treated as an emotional and opinionated look at the current situation. Historically, those cycles varied in length, with some of them being well over 10 years long.

The market hasn't reached the edge yet.


Some experts say that the stock market is driven by emotions. Sir John Templeton once said, “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” This is exactly what we could see in the late 1990s in the dot-com sector and in 2005-2007 in the real estate sector. The euphoria led to a crash and economic collapse. Still, the current market situation isn't indicating such triggers yet. Non of the sectors has euphoria. Real estate, industrial stocks, and commodities are all reasonably priced at this point. The P/E multiplier of S&P 500 has dropped down to 21 points, as opposed to 25 points seen 12 months ago. The forward value of the multiplier is 16,5. With that being said, the market hasn't reach this state yet.
At the same time, some other experts draw our attention to a couple of indicators. Those are said to have reached dangerous values right before each recession in the U.S. economy. At the same time, the Yield Curve and the PMI are the other 2 indicators that would find themselves in the red zone right in advance of another recession. At this point, non of the 6 key indicators has turned red. This leads us to belive that the market bias is probably going to stay bullish over the next 12-18 months.


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European ETFs - Decent Alternative to American ETFs

The mentioned PRIIP rules are forcing the financial service providers and brokers to publish a specific set of info documents including the so-called KID with the key info on certain investment and insurance products. Since the funds coming from outside of Europe do not conform to these requirements, they cannot be offered to EU residents as investment products.
Publication date: 19 September 01:48 AM

Warren Buffett Keeps Loading Up On Bank of America's Stock

Berkshire Hathaway keeps loading up on Bank of America's stock. This time, during the period of July 31st - August 4th, they purchased over 13,6 million shares, which cost 337 million dollars. The average prices was 24,81 dollars per share. With that being said, Berkshire Hathaway now owns 1,03 billion shares of the stock, which is 26,15 billion dollars in dollar terms. As for the Federal Reserve, they agreed to increase the fund's share to 24,9%.

Publication date: 12 August 01:39 AM

WTI Price Drops After US Oil Inventories Report

Today, another crude oil inventories report has been released by the USA:

Publication date: 03 June 12:21 PM

Is Gold Worth Investing Amid Crisis?

Securing assets has always been number-one goal during crises. This is something that worries borth financial experts and plain folks who are far from the  peculiarities of the financial world but who are still witnessing their savings vanish amid inflation and devaluation.

Publication date: 14 April 02:09 AM

Remember the Key Rules of Investing in Stocks

Without further ado, let's consider a bunch of principles of investing in stock, which will put the odds of succeeding in this business in your favor:

Publication date: 11 March 01:14 AM

Apple Patents iPhone Without Ports And Holes, Device Expected In 2021

It seems that the release of the long-awaited iPhone without any ports or holes is getting more and more portable. Apple has always favored minimalistic designs, especially over the last 5 years. In 2015, almost all of the classic ports were deprecated in MacBooks in favor of a single one - USB-C Thunderbolt 3. In 2017, iPhone 7 got rid of the 3.5mm audio jack.

Publication date: 05 March 08:20 AM

Gold Sets New Records

The gold market is insane. The gold futures price set a new major high in New York. In particular, the dollar price of the precious metal set a new 7- year high. With that being said, maybe you should add gold to your investment portfolio along with BTC? Well,lat's ponder upon this question.

Publication date: 14 January 01:23 AM

Brent Prices Drop Down To $61/b

The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Publication date: 27 September 04:52 AM

Gold Prices Are Getting Stable After Monday's Rally

Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher. 

Publication date: 24 September 05:15 AM

Oil Prices Have Made The Biggest Rally In History

Gold, yen, and oil currencies are getting more expensive. The strike came for an unexpected direction. Saudi Arabia's oil facilities were attacked, which increased geopolitical risks in the region and simultaneously undermined the global oil supplies. That was basically the reason why crude oil prices made the biggest rally in history but then moved back a bit and are still trading over 10% higher relative to the start of the trading session. 
Publication date: 16 September 03:26 AM