Investors should remember that market volatility is a natural part of investing. It has been four months since the last significant volatility spike, measured by the VIX, which occurred in August amid recession fears and unwinding of the yen carry trade. That episode passed, and this one likely will too.Despite the sell-off, the broader market trend remains upward. Prices are still above the 200-day moving average, signaling that the bull market isn’t over. While pullbacks are inevitable, they are not a reason to panic. The ability to stay psychologically resilient during such drops is the price investors pay for superior long-term stock returns. Stay the course. The Fed’s cautious outlook reflects concerns about inflation. Proposed trade tariffs under Trump could increase the cost of good
In an uncertain world, holding something tangible in your hands can provide more security than any paper portfolio. While I don’t believe a global war is imminent in 2025, the probability isn’t zero. The alignment of power blocs and the number of unresolved global flashpoints remain concerning. Ultimately, much depends on the decisions made by global leaders, especially those in the world’s most powerful nations. If rational thinking prevails, 2025 could still be another prosperous year for investors. Let’s hope that diplomacy and strategic calculations triumph over conflict. After all, in a world of interconnected economies, global peace remains the best investment we can make. Given Russia’s deep military entanglements in Ukraine, North Korea might turn to China for support. During the K
NVIDIA needs little introduction as it’s currently the hottest stock in the market, thanks to its dominance in AI hardware. At one point in 2024, it briefly overtook Apple as the world’s most valuable company. While it’s now back at number two, that’s still an impressive feat. On December 9, 2024, China’s State Administration for Market Regulation launched an antitrust investigation into NVIDIA, alleging potential violations of anti-monopoly laws. This is widely seen as a counter-move against U.S. restrictions on China’s chip industry. The probe targets NVIDIA’s AI chip market dominance and its compliance with conditions from its 2020 Mellanox Technologies acquisition. According to Morningstar, NVIDIA's fair value estimate is $130, while its current share price is slightly above that at $1
Yet, the point of this post isn’t about the upcoming earnings—that’s short-term. I want to highlight a major trend where Apple is cementing its leadership while no other tech companies are making similar strides: health tech. This is not entirely new; Apple Watch has included fitness tracking and heart rate monitoring for years. Apple continued to improve by adding features like sleep monitoring, ECG, and blood oxygen measurement, expanding its capabilities in health monitoring. Additionally, Apple has been criticized for being slow to the AI race, where rivals like Microsoft and Alphabet are seen as leaders in this hot new field. Last week, Apple’s stock was briefly overtaken by Nvidia, losing its crown as the most valuable company globally by market cap. While it has since reclaimed the
Why Is the Stock Market Coming Down Year end ? Several factors could explain the recent drop. GDP Concerns: The U.S. economy grew at 2.8% in the third quarter, missing the 3.1% forecast. U.S. stocks have been buoyed by strong economic growth and low unemployment, despite high interest rates. Yet, fears of a recession linger, and investors are especially sensitive to any slowdown signals. The third-quarter GDP miss reignited these concerns. Rising Bond Yields Despite Fed Cuts: Bond yields have continued to rise even as the Fed cuts rates. This can partly be attributed to overly optimistic market expectations for rate cuts, which initially factored in 0.5% reductions but have since been adjusted to a more modest 0.25%. Additionally, the growing U.S. debt burden means higher yields may be nee
Bloomberg recently reported that while 75% of companies have beaten analysts' estimates, this is the lowest rate since 4Q2022. In other words, a 75% beat rate no longer signifies a standout performance, as companies are typically expected to exceed estimates due to conservative management guidance. Microsoft delivered a 16% year-over-year (YoY) revenue growth, surpassing analysts' expectations. However, its share price declined by 3.71% in after-hours trading.Although a breakdown of the next quarter’s guidance for the Azure + Cloud segment wasn’t provided, this segment has maintained over 30% YoY growth in recent quarters, including the latest. This consistency is reassuring, yet Microsoft’s overall revenue growth forecast of 10.6% might signal a potential slowdown in Azure + Cloud as well
While deploying a momentum-based strategy can be challenging for individual investors, there are now several momentum ETFs available. However, many of these ETFs fail to outperform index returns, making it more practical for investors to simply buy the S&P 500 ETF. Momentum capitalizes on delayed reactions and herd behavior among investors. We see this in daily life, such as when we choose a restaurant with rave reviews and long lines. A recent example in the stock market is Nvidia, where the AI narrative attracted investors, and as the share price climbed, more investors piled in, driving it even higher. A common concern is the risk of a price collapse. That's why a systematic approach to taking profits and limiting losses is crucial for managing risk in momentum strategies.That said,
Tesla plans to begin producing the Cybercab before 2027, though Musk acknowledged potential delays. As for the Robovan, a specific production timeline remains elusive. Both vehicles will form the backbone of Tesla’s new business model, positioning the company to compete with Alphabet’s Waymo, General Motors’ Cruise, and ride-sharing titans like Uber and Lyft. However, despite the fanfare, the event focused more on long-term vision than immediate deliverables. Musk shared little about Tesla’s driverless taxi business model, and there was no mention of the ride-hailing app Tesla previewed to investors earlier this year. Musk’s lofty ambitions are not new. He predicted fully autonomous Teslas by 2017 and robotaxis by 2020—both timelines that have since passed without realization. This has lef
With the latest new in Middle East .The Middle East conflict is worsening. In 2023, Hamas attacked Israel and took hostages back to Gaza. Israel retaliated by invading Gaza, and the situation remains unresolved. Israel is now battling on a second front, engaging Hezbollah, and in October, it invaded Lebanon. Last week, Iran launched 180 ballistic missiles at Israel, most of which were intercepted. In response, it is expected that Israel will retaliate, and there are rumors that Iran’s oil facilities may be the target. Iran, a member of OPEC, accounts for about 3% of global output. While this is not a significant share, especially considering the economic sanctions Iran faces that restrict its supplies from reaching most markets, the real issue is Iran’s geographic influence. Iran controls