A very happy Manic Monday to everyone. The market seems to having a rough start to a new trading week on the first day for the second week in a row. The international tension between major economic power continues to be the chief reason between the up and down market swings. Which is irritating when the value of a securities should be strictly focused on the quality and performance of the company’s fundamentals.
Reports that the Trump administration is planning additional curbs on Chinese trade and investment with in U.S. sent the entire stock market tumbling, but tech stocks were hit particularly hard. At midday, shares of Facebook were down 4%, Google parent Alphabet had lost 3%, Netflix was down 7%, and Amazon was down 3%. Among chipmakers, which would could be most affected by the rumored crackdown, Qualcomm was down 3%, Intel has lost 4%, Nvidia dropped 5%, and Advanced Micro Devices lost 6%. If these tariffs aren’t settled in the coming days in weeks this could spell a horrible downturn in market securities for the summer months.
If this trade war continues to escalate further investors might want to consider safer avenues of investment such as Gold and Bonds. But the thing about that is I’m not even sure if those usually inverse products that move opposite of stocks usually would even be safe for the pull back in the market if these tariffs continue to spread from continent and regions. The only saving grace is this market dilemma is presenting the best buying opportunity for investors to Blue Chips and Tech stars that have been overpriced for some time now. If you have any more on the sideline waiting for a buying opportunity, never has the timing been better.
Information from this weekly email is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for analysis purposes only. Be sure to understand all risks involved with each strategy, before attempting to place any trade.
Per usual hope you all have a great and prosperous week and an even better investment week. Will talk to you soon!!
Jamaal W Vetose
University of Baltimore’15