Share to Twitter Share to Linkedin What a difference a month makes as in a year-end survey of market strategists from CNBC revealed that the median yearly target for the S&P 500 was 5100 with the most bullish targets at 5500. The lowest target was 4400 but on Friday the S&P 500 closed at 4397.9. So what has happened? Has there been an economic collapse, political scandal, war? Fortunately, none of the above but this month’s action in the stock market, especially last week, has caused many to question their outlook for the stock market in 2022. The weekly performance numbers tell the story as the losses were recorded in just four days of trading. The iShares Russell 2000 was the weakest down 8.1% as it was only slightly worse than the 7.5% decline in the growth dominated Nasdaq 100 Index. The prospect that the Nasdaq 100 could record its worst month since 2008 is unlikely to improve investor sentiment. The 5.7% loss in the S&P 500 was the … [Read more...] about What Happened To Last Years’ Stock Market Bulls?
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Share to Twitter Share to Linkedin Last week one of the biggest and long-standing bulls on Wall Street — Wedbush's Dan Ives — told me it's the biggest week in recent history for technology companies. He's right. In fact, it's the biggest week for markets in at least a decade. It was about 11 years ago that Standard & Poor’s downgraded the credit status of the U.S. That was a very uncertain time when a lot of bond market models were being threatened in a pretty scary way. Since then, things have been pretty peachy for investors. There were a lot of boogeymen under the bed along the way – China slowdown, American energy crisis, populist politics, VIXplosion – but none turned out to be real sustainable threats to the stock market. When the Fed finally tried to tighten things up in 2018, everyone freaked out, and the central bank went right back to supporting markets. Somehow even a global pandemic ended up being a hugely bullish catalyst, when our solution to … [Read more...] about This Is The Biggest Week For Traders In A Decade
Airbnb ( NASDAQ:ABNB ) went public in Dec. 2020 at $68 per share. The short-term rental provider's stock opened at $146, hit an all-time high of $219.94 last February, then pulled back to the $160s over the past year. Airbnb clearly remains a battleground stock for the bears and the bulls. Let's review both arguments and see which thesis makes more sense. What the bears will say about Airbnb The bears generally don't like Airbnb for four reasons: the competition, the regulatory headwinds, its high valuation, and the pandemic-related threats. Airbnb enjoys an early-mover's advantage in the short-term rental market, but it faces a lot of competition from traditional hotels and online travel agencies (OTAs). In the hotel space, Accor ( FRA:ACR ) bought Airbnb's competitor One Fine Stay in 2016, Marriott ( NASDAQ:MAR ) partnered with the home rental platform Hostmaker in 2019, and other hotel chains are launching cheaper brands to compete against Airbnb. Image … [Read more...] about Airbnb Stock: Bear vs. Bull
Share to Twitter Share to Linkedin Tesla’s (TSLA) market cap surpassed the trillion-dollar mark, driven by a post-earnings rally that got a boost from the announcement of a 100,000-vehicle order from Hertz (HTZ), which might not even happen. Even if it does come to pass, the Hertz order is a drop in the bucket of growth expectations baked into Tesla’s valuation. Tesla needs 155 Hertz-sized orders to justify the revenue expectations in its stock price. Put another way, the $1.2 trillion valuation implies Tesla owns 60%+ of the entire global passenger EV market and becomes more profitable than Apple (AAPL) by 2030. This report provides objective perspective on how outrageously high the valuation of Tesla stock is and the clear impracticality of the company meeting the expectations baked into its valuation. Tesla’s Valuation vs. Competitors Makes No Sense Tesla’s market cap is now greater than the next 10 largest (ranked by market cap) auto manufacturers … [Read more...] about Tesla: $1 Trillion Of Speculation
- A + A (Jan 25): The strategists who saw this miserable stock rout coming say there’s still more pain ahead. With the S&P 500 sliding more than 10% from recent records, bears from the likes of Mizuho International Plc and Bank of America Corp. warn of fresh selling to come as growth momentum eases just as the Federal Reserve amps up borrowing costs. “There’s probably more downside over the next few months as the market adjusts to the reality of the Fed removing accommodation, earnings slowdown and much less federal stimulus,” said Ed Clissold, the chief U.S. strategist at Ned Davis Research, who late last year predicted a double-digit drop in stocks and today is warning of a correction on the order of 20% from the early January peak. The S&P 500 could slide another 12% as a “tightening tantrum” gathers pace, according to Mizuho strategists who came into 2022 warning of a 10% to 15% plunge in the second quarter, if not sooner. A slew of factors -- … [Read more...] about Strategists who predicted this market rout also see more selling
Berkshire Hathaway CEO Warren Buffett is one of the most successful value investors of all time. By picking stocks that trade at steep discounts relative to their intrinsic value, Berkshire Hathaway consistently beat the broader market during his lengthy tenure as the company's primary stock picker. Although classic value stocks fell out of favor during the nearly decade-long bull market over the course of 2010 to 2020, and Berkshire's stock underperformed some major U.S. stock indexes as a result, these tried and true investing vehicles are making a furious comeback during this current bear market. The long and short of it is that the increasing likelihood of rising interest rates and stubbornly high levels of inflation ought to favor Buffett's value-oriented approach to investing over narrative-driven growth stocks in 2022. Which Berkshire Hathaway -- or Warren Buffett stocks -- are the best value plays right now? Bank of America ( NYSE:BAC ) and Teva Pharmaceutical … [Read more...] about 2 Best Warren Buffett Value Stocks to Buy Right Now