When the ‘Big Three’ are getting it wrong, we’re seeing their stock prices fall
Share this article Share A series of recent events, and a couple of simple principles, has turned StockSnap’s stock prices on their head.
It’s not just the “Big Three” who have been putting pressure on the price of stocks in recent weeks, with the price drop for shares of a number of companies in particular hitting a record high.
In fact, the recent events have seen the Dow Jones Industrial Average hit an all-time high for the first time, as investors bought shares of tech giants such as Apple and Facebook as the “alt-market” rallied to record highs.
And in the past 24 hours, the market has fallen from $13.30 to $13, a drop of around $3,000.
But the reality is that stocks aren’t going to go up anytime soon.
“There’s not much reason to think that the stock market is going to be able to take off,” said James Poon, managing director of investment banking at investment bank KPMG.
It will likely be a period of sustained and sustained swings until things settle down.””
There is no need to panic.
It will likely be a period of sustained and sustained swings until things settle down.”
Investors are not going to buy more because they’re worried about the economy, they’re not going buy more simply because the market is getting better and better.
“[The] underlying fundamentals are showing that there are going to continue to be swings in the economy and there is no reason to buy anything unless you’re convinced that it’s going to improve.””
We have a lot of volatility in the market,” he said.
“[The] underlying fundamentals are showing that there are going to continue to be swings in the economy and there is no reason to buy anything unless you’re convinced that it’s going to improve.”
The Dow Jones is down for the third time this week, and has been on a tear this year.
In fact the market saw a decline of around 6 per cent in the third quarter, a number which has been seen before in the years since the 2008 global financial crisis.
“I think there’s been a lot more people holding shares than buying them and that’s a sign of that,” said Poon.
“A lot of people will buy shares because they believe they will be able a get better outcome in the future, and that that’s the case.”
“The biggest problem is that the fundamentals are not there yet,” he continued.
“The market is not trading at a reasonable level.
We are in a period where there are huge swings in asset prices.”
We are at a period in the history of the market where we haven’t seen the big three.
“For example, when the Dow was at its peak of over 14,000 points, the price had climbed nearly 200 per cent since then, and Poon points to the example of Microsoft and Apple, which are both currently at record highs and have seen their market capitalisations double.”
Apple has a massive $1.6 trillion market cap,” he told News.au.”
And Microsoft has $6 trillion.
And that is the kind of market capitalisation that we are looking at in the near future.
“Poon says that while the market might be a little bit overvalued right now, it is in fact “quite reasonable” to expect that the market will eventually come down.
In other words, the fundamentals of the markets are likely to improve and then people will start to buy again.”
If the fundamentals get better and we see the markets coming down, the big problem will be that investors will not buy stocks because they think they will get better returns in the long run,” he explained.
But that doesn’t mean that investors aren’t looking for other things to invest in, as the Dow has seen an increase in the amount of money that is being invested into equities over the past 12 months.”
When you have a strong performance in the stock markets, it’s not necessarily going to bring you more wealth,” he pointed out.
So where do stocks go from here?
The short answer to that is, “well, we’ve got to buy our shares,” said David Krawczynski, senior research analyst at S&P Capital IQ.”
In the long term, you need to be paying attention to what the fundamentals look like.””
For example if the economy continues to improve then you should be buying shares of companies that are doing well,” he added.
Poon, meanwhile, said that if the market continues to do well, then stocks should be looking for value.
The S&s stock market index has risen by 2.5 per cent this year, and it is forecast to rise further this year with a forecast of a return of 6 per year.”
At some point we will have a period that will be where the stock price is going up and the market does not have enough room for the growth,” he suggested.
While that might not happen