Hi Tigers, welcome to ”What the Tigers Say” [Cool]
This is a weekly column planned to share the great opinion from Tigers on ‘How will the US stock market go? Investing Tips From Tigers’.
As we analyze the trajectory of the US stock market, several key factors come into play: the performance of regional banks, the semiconductor industry, big tech stocks, and so on. These sectors hold significant influence over market trends and can provide valuable insights for investors.
Below are some insights from Tiger @NAI500, @ShenGuang and @nerdbull1669. Which opinions do you agree with？
🎁Special Notes: Whoever showed on the” What the Tigers say” column will receive 100 Tiger Coins and an exclusive interview invitation to honor of your contribution.
Click titles to read the full analysis:
1. @NAI500: These 4 Types of Assets is the Key to Further Trend of US Stocks
Key Points:
So far, the "black swan" of 2023 is the collapse of the U.S. regional banking sector that has triggered weakness in small-cap stocks. $SPDR S&P Regional Banking ETF(KRE)$ has down nearly 40% so far this year, approaching its lowest level since the pandemic 2019. While the market has weathered the shock, the sector needs to stabilize if the U.S. market is to continue to move higher.
One big rebound concept for 2023 is the surge of the semiconductor industry. After a brief earnings deceleration in the tech bear market, earnings expectations have risen as AI mania prevails.
If the market wants to maintain its upward trend, either super market capitalization technology stocks like $Meta Platforms, Inc.(META)$ , $Alphabet(GOOGL)$ or $Oracle(ORCL)$ continue to lead the rise, or small and medium market capitalization Technology stocks also participated in the gains. Of course, a sustainable bull market requires strength in both types of stocks.
2. @ShenGuang: Global Fund Managers: Pessimism Rising, Banks in Crisis
Key Points:
The banking crisis rules the roost in terms of top “tail risk” concerns, although this has slightly abated from April. This is likely on account of the depositor rescue program which is now increasingly likely to be applicable on all failing regional banks.
Interestingly, while inflation also sees a slight step down from last month, worsening geopolitics causing an additional strain has seen a slight uptick. When tied with the idea of very low self-reported risk levels being assumed, this would mean that inflation-related measures are generally being locked into place. One such measure: an increasing focus on “Big Tech”.
Big Tech - such as $Alphabet(GOOG)$, $Microsoft(MSFT)$ and $Apple(AAPL)$ - are increasingly being viewed as the equivalent of “Treasury Stocks”, i.e. they represent companies that are far too ubiquitous and central to technology and business to completely vanish in a short period of time. In fact, being bearish on American banks and bullish on “Big Tech” stocks are both some of the most overcrowded positions held by the survey’s respondents.
3. @nerdbull1669: Why I would invest in Nasdaq 100 Bull 3X ETF (TQQQ)
Key Points:
Last night we can see $Nasdaq100 Bull 3X ETF(TQQQ)$ got a good gain when the indexes are gaining more than 1% each. But the good news is it has show an upward trend over this week, when the market is trying to cope with the concerns over the debt ceiling. Which we are now getting more optimistic.
6 out of 10 holdings in Top 10 by weightage is into U.S. Treasury Bills, this would make some difference if these bills rates were to change because of the interest rates decision. T-bill interest rates tend to move closer to the interest rate set by the Fed, known as the Fed Funds rate. As long as Fed keeps interest rates high, treasury bills should do well in the short term. But how will TQQQ perform?
If we were to relate the events that could lead to how TQQQ have performed on 11/12 May, it seems to trade downwards because of the job reports on Friday(12 May). Things start to pick up on Monday(15 May) when we return for the week of earnings for some big names. Concerns of debt ceiling also have investors staying on the sideline, but it seems like investors are still putting into TQQQ.
Questions for you:
How will the US stock market go? What are your investing tips?
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⏰Duration
25 May (24pm EDT)
Comments
Rates pause leads to recession, yet market is unpredictable, either it's continue moving up OR vice versa!
Who is the lucky one already ridding up with the big tech speed train OR waiting patiently for the reversal to come with a better entering ticket?
come share your thoughts & get coins frensss!
7. Doomsday folks are always around and sometimes they get it right, just as the saying goes, “a broken clock is right twice a day”.
8. Do your homework rigorously to identify high quality companies that have consistently performed over time and then be patient to wait for buying opportunities. Patience is always rewarded sweetly.
8. Embrace diversity, not keeping all eggs in one basket because no matter how good a stock is, sometimes bad things just happen.
9. Make money when u buy, not when u sell. Strike when the opportunities are ripe and stick to your plan so that you’re always in control of what u can do when different scenarios unfold in the stock market.
Keep winning!
1. Bull markets are born in the darkest hours of the market amidst doom and gloom.
2. It’s been 8 months since the bull market started and I believe many have recovered losses and made money.
3. Those who are still screaming now are the ones who didn’t catch the bull market and are crying unfair. Guess what - life is unfair, just that it caught u now. You’ll get lucky somewhere else I’m sure.
4. Bull market doesn’t mean no turbulence in the market, so do expect ups and downs and big events like the debt ceiling and FOMC decisions days are bound to create waves in the market.
5. Choppiness in the market gives great opportunities to buy high quality companies at discounts.
6. Time in the market bests timing the market. If you’ve been buying a consistent amount each month on the way down, u should be smiling if not laughing right now (at your own smartness or stupidity depending on how u see it).