Posts

Will negative interest rates help revitalize our economy?

Image
Some of you have never heard of negative interest rates, like me, while other have. These are some wild times in our economy so some people are suggesting that the Feds lower the interest rates in the negative to help our economy. The first question you probably have is what do negative interest rates mean? Negative interests mean that you will have to pay a monthly fee to the bank to keep your money in which it will encourage you to spend your money, which is the goal, or just keep it in a safe at your house. On the bright side, the taking loans will be easier because you don't have to pay any interest rates so if you want to get a loan to buy a house, just do it. In theory, negative interest rates should help our economy because increased consumer spending means higher sales for companies, and some examples of these implementations can be seen in Japan and Europe. However, there is a discussion whether or not America should actually enact negative rates. President Trum...

Will Oil be the Jackpot?

   A new OPEC deal was made today with OPEC and its allies agreeing to cut oil production. What does this mean? It means that oil prices will rise tomorrow. Why is that?   The decrease in oil production means that the supply of oil will decrease which will allow the oil prices to increase helping energy companies and especially American energy companies. The past few weeks had OPEC has been meeting to try to agree on a decrease in oil because some countries didn't lower there oil production which was hurting American energy companies.   I recommend these stocks'/ETFS to buy tomorrow: 1. Exxon Mobil Corporation(XOM)- It is one of the largest oil companies in America which means that they will be one of the most positively affected by the new deal. They have dropped almost 40% since the beginning of the year and they have an attractive P/E ratio of 13. They offer also a nice dividend of 8% which adds the cherry on top. 2.  Invesco DB Oil Fund(DBO)- Cr...

Investment Picks with Edward-April Edition

   I just want to quickly thank the health workers who are fighting against the coronavirus.    So the market has been going up in the last week of March, but I feel that it will go back down because the markets rose on the sense of hope because a new drug was passed through the FDA to be used to combat the coronavirus. However, scientists predict that there will 100,000-240,000 deaths in the United States causing it to drag down the market. We are in volatile times right now with news being able to cause big drops or gains so it is the best to look long term. These are the top stocks I recommend in the long run: 1. Intel(INTC)-  It is the one of the largest semiconductor manufacturing companies in the United States with a market cap of $231.70 billion and a P/E ratio of 11.50 which makes it a cheap option. A bonus is that they have a dividend yield of 2.44%. It also has around $3 billion in cash which is benevolent because cash is KING right now. Technolog...

The Beginning of the End?

Image
   Some people expected 2020 to be their year, like me, but as we get into the third month, some people are acting like the world is going to end-they are buying all the toilet paper in the stores. I myself was almost was too late to buy toilet paper upon seeing some people take cart fulls of toilet paper with barely any left for others. I feel that they probably should see a doctor long before for COVID-19 if they need 144 rolls of toilet paper.     The idea of a recession has been around since last year and people started expecting a correction in the stock market after tremendous growth this past year, or even worse, a recession. Anything event detrimental to the US economy could've triggered a big fall in the stock market and COVID-19 was the chosen one this year. If you want to know more about my prediction of a recession, you can read more about it in my previous blog.    COVID-19 is causing widespread panic across the globe causing ma...

Gold is the new Green

Image
A shiny, yellow piece of metal that we call gold is commonly used for products such as the phone you are maybe using right now. A majority of people go to gold when there are the problems going on affecting the United States and the world. The Corona-virus, risk of recession, and other fears means that people will turn to gold as a safe haven. Also the risk of recession will definitely cause gold to rise because people are scared the inflation will devalue their money, but gold will keep its value when there is inflation causing more people to buy gold. Gold companies such Barrick Gold Corp(GOLD) or gold mutual funds would be the best to buy because buying gold directly won't give you much value when you are waiting for it to go up while gold stocks, ETFs, and mutual funds can give you dividends which is better.

Fear of Recession

Image
   A recession is when the economic activity of a country declines which affects businesses negatively because of consumers wanting to spend less money.    The short terms bonds are yielding more interest than long term bonds which indicates an inverted yield curve. This inverted yield curve could signal a recession happening in the US economy within the next year because of uncertainty in the economy. Investors are willing to invest more in long term bonds than in short term bonds causing a higher demand in long term bonds which decreases their yield while the Federal Reserve would increases the yield for short-term bonds to help the economy grow.     An example of an inverted yield curve leading to a recession is when in 2006, there was an inverted yield curve for most of the year which led up to the big recession in 2007.

Top Stocks to Buy....November Edition

Image
     Black Friday. That is one of the most cared about days of the year other than Christmas because that's where parents gets the best deals and is probably where most of the gifts you got for Christmas came from. Black Friday is also one of the most cared about days of the year, as you can see by how many ads are on TV, for retail companies too because that is when they make huge profits compared to the rest of the year. I got you covered for November because all the profits you can make with my help could be used towards helping you get your Black Friday stuff. These are my top recommended stocks. 1. Nike Inc (NKE)- Nike is one of the most popular apparel and footwear brands and has continued to stay that way by attracting teenagers and adults with their constant production of new trendy clothes and sneakers. They took a hit, dropping more than 7%, in the middle of October down to $89.48. With Black Friday coming up and their high popularity, their revenue is going...

American Airlines Group Stock Could Takeoff Soon

Image
         If you thought you had a bad day, just think of what is happening to American Airlines this year because they are having it worse.     American Airlines has been hit with unfortunate events this year which is making their stocks not look too attractive. American Airlines was forced to ground 24 of their Boeing 737 Max 8 airplanes after two 737 Maxes crashed from problems within the 737s. American Airlines was also troubled with unionized mechanic slowdowns causing problems for them.    The American Airlines Group(Ticker: AAL) has a low P/E ratio of 9.25 making it not to overly valued which shows that their is room to growth and that the stock is performing better than past trends this year. Also American Airlines is looking attractive because it is currently priced at $28.05 which is -13.64% from the beginning of this year making it relatively low priced which means there is room to increase. Additionally American...

It may not be the best time to invest in Chinese IPOs

Image
    Background     It all started when Mark Cuban, a billionaire and an investor on Shark Tank, tweeted last month that the solution to the US-China trade war would be to cut Chinese IPOs off the US Exchanges because it would hurt the capital of Chinese companies, but won't hurt the American people as much as tariffs do. That may seem like a pretty wild idea, but there are some indications that the White House may actually do it. What does it mean for you, the investors and what should you do?    American investors like you who invested in Chinese companies should be aware of the risk that it has for you if Trump does drop all Chinese IPOs because the stock market on Friday took a hit causing the S&P 500 to drop 0.53 percent after the news that the White House may follow Mark Cuban's plan. This may foreshadow a hit for the US stock market if the White House follows through and especially for Chinese companies who will take most of the hit. I w...