Share to Twitter Share to Linkedin Key takeaways Bear markets occur when prices drop more than 20% from recent highs Bear markets can last a few weeks, months or even years, depending on the cause and underlying economic conditions With inflation at a 40-year high and the Fed eyeing future rate hikes, a recession isn’t out of the question Between investor sentiment and economic factors, market indices currently border on bear market declines – but we’re still in correction territory Are we in a bear market? That’s the question on everybody’s mind as inflation hovers at 40-year highs, interest rates climb and stocks drop. And as the market so elegantly demonstrated in 2007, bulls can’t charge on forever. Now, after a decade of bullish markets – and two years of particularly astronomical returns – it’s time to consider whether bears are on the march. Download Q.ai for iOS today for more great Q.ai content and access to over a … [Read more...] about Are We In A Bear Market? Here’s How To Tell
Decades of optimism about chinas rise have been discarded
Japan’s Richest 2019: Why Country’s Zombie Economy Is Finally Staggering Back To Life
Share to Twitter Share to Linkedin Japan's Prime Minister Shinzo Abe delivers a speech at his office in Tokyo on April 1, 2019. ... [+] (Kazuhiro Nogi/AFP/Getty Images) Getty This story is part of Forbes' coverage of Japan's Richest 2019. See the full coverage here . Nearly three decades after its own asset bubble burst in 1991, Japan is still characterized as economically stagnant, weighed down by mounting debts and increasingly long-lived retirees. The latest data have deepened the gloom, with the IMF estimating that Japan’s GDP growth slowed to 0.9% last year from 1.9% in 2017. The benchmark Topix stock index slid almost 8% last year. It is easy—natural in fact—to be pessimistic about Japan. The reality is more nuanced. The Japanese economy today is arguably healthier than it has been in over a decade, with annual GDP growth averaging 1.3% since 2012, again according to the IMF, double the 0.63% average in the previous … [Read more...] about Japan’s Richest 2019: Why Country’s Zombie Economy Is Finally Staggering Back To Life
Wholesale price increases can threaten growth recovery, say economists
Representational Image. Wholesale prices in India rose 15.1 percent in April from a year earlier, the most in three decades, increasing cost pressures on producers and likely affecting growth, economists said. Inflation as measured by the Wholesale Price Index was at the highest level on record in the current 2011-12 series. Prices of food, fuel and manufacturing registered an exponential spike in April, with the sharpest increases in fuel and power prices. While WPI has risen considerably since 2015, the 13 percent jump between FY21 and FY22 was the highest. Global factors Close The index is dominated by manufactured products, which have a weight of 64 percent and are influenced significantly by global factors such as the pandemic and geopolitical tensions. Consequently, an increase in global prices gets reflected more in the WPI, according to economists. “The key factors behind the increase in the WPI are elevated global commodity prices and … [Read more...] about Wholesale price increases can threaten growth recovery, say economists
Why Tesla Could Become The Netflix Of The EV Market
Share to Twitter Share to Linkedin Netflix NFLX was a pioneer in the online streaming industry. This year, it became clear that the incumbents had finally caught up. What’s more, Netflix is not poised — as it was in 2007 — to enjoy rapid upward growth by creating a new industry that builds on its strengths. Now — after reporting a drop in subscribers — its stock trades 74% below its October 2021 peak. Could the same thing happen to Tesla? An MIT professor and a J.D. Power & Associates executive told me that Tesla — whose stock sits 43% below its high — will face considerable challenges from incumbents. However, by improving its vehicle design, offering a broader product selection, boosting manufacturing quality, and upgrading its customer service, they could envision Tesla sustaining its rapid growth by capturing more mainstream customers. How Netflix Lost Its Edge For years, Netflix defied analysts who said that the likes of Disney, … [Read more...] about Why Tesla Could Become The Netflix Of The EV Market
World stocks slide as growth fears persist, safe-havens gain
- A + A NEW YORK (May 20): Global equities fell further on Thursday, unable to sustain a late rally on Wall Street, as investors dumped stocks on fears of sluggish growth and bought safe-haven assets such as government debt and the Swiss franc. Supply chain woes continued to fuel inflation and growth concerns as Cisco Systems Inc warned of persistent component shortages, knocking its shares down 13.7%. The plunge made it the latest big name stock this week to post its largest decline in more than a decade. Data showed factory output in the U.S. Mid-Atlantic region decelerated far more than expected in May with the business outlook for the six months ahead the weakest in more than 13 years, a regional Federal Reserve bank survey said. Some megacap growth stocks that have underperformed this year posted gains but the rally fizzled. The Dow Jones Industrial Average fell 0.75%, the S&P 500 lost 0.58% and the Nasdaq Composite dropped 0.26%. Big slides for Walmart … [Read more...] about World stocks slide as growth fears persist, safe-havens gain
Wall Street ends lower as Cisco and Apple sink
- A + A (May 20): Wall Street ended lower after a volatile session on Thursday, with Cisco Systems slumping after giving a dismal outlook, while investors fretted about inflation and rising interest rates. Shares of Cisco slumped 13.7% after the networking gear maker lowered its 2022 revenue growth outlook, taking a hit from its Russia exit and component shortages related to COVID-19 lockdowns in China. Apple and chipmaker Broadcom declined 2.5% and 4.3%, respectively, and weighed on the S&P 500. "The reality is that inflation is running hot and interest rates are rising," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota. "Until you get that inflation rate to start slowing, we're going to have increased volatility, and in our view that continues through throughout most of the summer months." Twitter climbed 1.2% after Bloomberg reported that company executives told staff that Elon Musk's $44-billion deal was … [Read more...] about Wall Street ends lower as Cisco and Apple sink
How To Handle The Latest Investing Fads And Get-Rich-Quick Schemes
Share to Twitter Share to Linkedin Bill Keen is the Founder and CEO of Keen Wealth Advisors and the Best-Selling Author of Keen on Retirement. Here’s a question I’ve been considering lately: Why do so many investors, who know that the market has experienced fairly consistent growth for many decades, continue to chase get-rich-quick schemes? Building wealth for retirement through highly speculative investments is almost never a good idea, and it rarely leads to consistent gains over the long term, as countless people have learned the hard way, and yet, speculative fad investments keep coming. I’ve been in the industry since 1992, so I’ve seen them in various forms. In the ’90s, there was talk about investing in the “Asian Tigers,” a reference to the countries Hong Kong, Singapore, South Korea and Taiwan. In the late ’90s, the rise of tech stocks meant that people were investing heavily into almost anything that had a “dot com” in the name, … [Read more...] about How To Handle The Latest Investing Fads And Get-Rich-Quick Schemes
S&P 500, Dow slip as Cisco drags, Nasdaq steady after selloff
- A + A NEW YORK/BENGALURU (May 19): The S&P 500 and the Dow extended losses on Thursday as Cisco Systems slumped after it gave a dismal outlook, while investors fretted over the impact of surging inflation on economic growth and corporate earnings. Shares of the networking gear maker slumped 12.7% as it lowered 2022 revenue growth outlook, taking a hit from Russia exit, as well as component shortage due to China lockdowns. Kohl's Corp slipped 1.1% after the department store chain cut its full-year profit forecast, the latest US retailer to flag a hit from four-decades high inflation. The S&P consumer staples index fell 1.9% to hit a seven-month low and was the biggest decliner among the 11 major sectors, as retail firms face the brunt of rising prices hurting the purchasing power of US consumers. "The consumer component is now starting to weaken, which bolsters the perspective that we are indeed heading into a recession," said Randy Frederick, managing … [Read more...] about S&P 500, Dow slip as Cisco drags, Nasdaq steady after selloff