Last Updated Jan 17, 2010 4:50 PM EST It's difficult to make sensible investment decisions when the public is acting sensibly. Knowing what to do when markets are grossly undervalued or overvalued is a snap - buy in the first instance and sell in the second - although emotions often get in the way and prevent us from acting as we ought to. But what's the right move when markets are more or less fairly valued, as stocks seem to be now after their huge rally from deeply oversold levels? That's a question that Jeremy Grantham, chief strategist at the portfolio manager G.M.O. and one of the most respected figures in investment circles, has been asking himself. "A year ago, equities globally - and everything else for that matter - were very overpriced, particularly if they were risky," he recalled in his latest quarterly review of the investment landscape. "A quarter ago, in mid-March, prices everywhere were cheap. Now they have all - or almost all - converged for a few unusual moments at … [Read more...] about Stuck in the Middle: How to Play a Fairly Valued Stock Market
How to predict stock price for next day
WASHINGTON — The International Monetary Fund on Monday raised its forecast for the U.S. economy over the next two years, saying President-elect Donald Trump’s policies would boost economic growth. But officials warned that if Trump’s protectionist trade proposals set off a trade war, that could be “quite destructive” for the global economy. The IMF also increased 2017 growth projections for a number of other countries including China, Germany, Japan and Britain, but warned that the global economy faced a number of downside risks from rising protectionism to a jump in interest rates. The forecast, which is part of the 189-nation lending agency’s Global Economic Outlook Update, noted that Trump’s election has already given a significant boost to U.S. stock prices, interest rates and the dollar. The new outlook puts U.S. economic growth at 2.3 percent this year and 2.5 percent in 2018. That would be an improvement from lackluster U.S. … [Read more...] about IMF predicts faster growth for U.S., citing Trump impact
Last Updated Nov 29, 2017 3:43 PM EST When Saxo Bank forecast last December that Bitcoin's price would surpass $2,000 in 2017, it may have seemed like a stretch given that the digital currency's value at the time was under $1,000. Now, with Bitcoin surging, the same analyst who made the earlier forecast has a new prediction: The price could soar to $100,000 over the next 10 years. While Bitcoin fans say such projections are within reason, skeptics abound, with Vanguard founder Jack Bogle this week urging investors to avoid the digital money "like the plague." Bitcoin mining consumes more energy than 159 countries"Bubbles always pop," Jonathan A. Martin, a professor of finance at MIT's Sloan School of Management said by email. "And cryptocurrencies have value only because people believe they will have value in the future. As soon as that belief starts to fade, it's over." For now, that belief is acting like rocket fuel and sending Bitcoin's value into the stratosphere. The … [Read more...] about Bitcoin: How high could the price go?
So the stock market once again has gone through the wringer. It won't be the first sudden tumble and it won't be the last. No two retreats are exactly the same, but most fit within certain patterns.The details always are different, but common themes often repeat.One thing to remember is that periodic market setbacks are part of the normal pattern, like steam that occasionally needs to vent from a simmering pot. On big down days, it's easy to fear the worse and assume the avalanche will snowball, especially with memories of the roughly 50 percent plunge from 2007-2009 still fresh.But usually, worst-case scenarios don't materialize.Market pullbacks can be placed into one of three distinct categories based on their severity, argues Jack Ablin, chief investment officer at Cresset Wealth Advisors.The worst types are systemic downturns that coincide with a loss of confidence in a country's financial or political systems, often with … [Read more...] about How to keep your common sense when the stock market takes a wild ride
James Royal, Ph.D., NerdWallet Published 12:45 pm, Friday, February 9, 2018 This article was first published on NerdWallet.com. News that the Dow Jones Industrial Average is down several hundred points sends shivers down the spine of even the most weathered investor. Such drops, while infrequent, can be scary because it’s impossible to predict how severe or long-lasting losses will be. And even if you trust the market will eventually rebound (as it always has), it’s hard to watch the value of your investments shrink before your eyes. In the immediate term, people will argue about what to call it — a crash? A correction? Leave the vernacular to others, and instead understand what’s causing the market to fall. This knowledge may not bring your money back right away, but it could help you prepare for the market’s next move up or take advantage of lower stock prices in the meantime. Defining a drop in the stock market Business Channel Now … [Read more...] about How to Tell a Stock Market Correction From a Crash