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Showing posts from March, 2021

Stocks to Avoid in 2021

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The pandemic and the rise of the digital age has sped up the decline for companies who haven't adapted to these changes in society. A few of these companies were some of the most successful, but as time  passed they are falling like the Roman Empire. Two of the most talked about companies in the past month were  AMC Entertainment Holdings Inc(AMC) and GameStop Corp. (GME) because investors tried to inflate the stock price. However, these companies don't seem to have a bright future as people switch to digital platforms.  The closure of movie theatres because of the pandemic was a big blow to AMC as most of their business comes from people going to their movie theatres causing them to lose around $4.6 billion dollars in 2020. Even once COVID-19 starts to die down, people will still be wary going into movie theatres as there are many other options to stream movies safely at home such as Disney Plus, Netflix, Amazon Prime Video, Hulu, HBO Max, and much more. Also, ...

Bond Market Signals Stock Decline

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The bond market's recent surge has been fueled from the fears of inflation caused by the 1.9 trillion stimulus package. Investors are fearful of that this huge package will cause inflation because the demands in the economy will increase without the limited supply which will cause prices to skyrocket and devalue the USD. The only way to combat inflation is to increase interest rates because it will encourage more savings, such as in a bank, and less spending such as taking loans to buy a house. The U.S. 10 Year Treasury bond has been up almost 40% the past month to 1.572% which further shows the threat of inflation is real because the interest rates rising shows inflation fears are real and needed after all this money being added into the economy.  The S&P 500 and Nasdaq Composite have been taking some hits in the past few weeks and is starting to show the end of the bull market and the start of the bear market. The Nasdaq has been down almost 10% in the past month an...