It is widely understood that psychological factors such as perceptions and herd mentality can significantly influence stock market dynamics and precipitate speculative bubbles and abrupt market corrections. Less appreciated is the fact that the foreign exchange (FX) market is equally susceptible to such risks and perhaps more so in the context of geopolitical events. The FX market — an over-the-counter marketplace that sets exchange rates for currencies worldwide — is the largest market globally in terms of trading volume. We’re going to look at bubbles in the FX market through the lens of Robert Shiller and Didier Sornette. A notable…
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Image source: Getty Images Witan Investment Trust is a dividend stock with an excellent track record of increasing its return to shareholders. For the year ended 31 December 2023 (FY23), it boosted its annual payout for the 49th consecutive year. At 6.04p a share, it now pays more than double what it did in 2013. However, the Scottish American Investment Company has done better. FY23 marked its 50th successive year of increasing its dividend. Appropriately, the front cover of its annual report contained the strapline: “Income again and again”. With ‘only’ 45 years of increases, Halma (LSE:HLMA) might be considered…
It’s been a tough few months for Super Micro Computer (NASDAQ: SMCI), whose stock has come under pressure for a variety of reasons this year. The stock first dropped in April following a mixed reaction to its fiscal 2024 third-quarter results. That trend extended to its fourth-quarter earnings release in early August with declining margins worrying investors.The company was then the subject of a short-selling report in late August from Hindenburg Research, which accused the company of accounting manipulation, evading sanctions, and related-party self-dealings by management. Not helping matters, the company delayed the filing of its 10-K shortly following the…
On Friday, Goldman Sachs reinstated coverage on Vodacom Group Limited (VODJ:SJ) (OTC: VDMCY) stock, issuing a Neutral rating with a price target of ZAR120.00. The firm’s position reflects an anticipated 13% upside for the telecommunications company, based on current market values. Vodacom’s expected EBITDA growth from 2023 to 2026 is projected at 5%, which aligns with the average growth rate of approximately 5% for African telecommunications companies when measured in US dollars. The company’s forecasted return on invested capital (ROIC) also matches industry trends, with an increase of 2% over the same period, comparable to other African telecoms. This is…
Investing.com — (SPW) and (SPX) delivered historic returns in the third quarter, but seasonality “looks bumpy for the broadening trade” over the coming few months, according to Barclays strategists. The Q3 performance of two indexes ranked above the 90th percentile of previous quarterly results. The gains were particularly strong at the start, as July returns were in the 97th percentile, which is noteworthy given that the third quarter, especially July, typically presents challenges for SPW. Looking ahead, while the fourth quarter generally supports equities, seasonality may act as a tailwind for SPX in October and for SPW in December. Barclays…
NIO (NYSE:NIO) stock is a popular investment for those who believe electric vehicles (EVs) are crucial to the global energy transition. Sometimes dubbed China’s answer to Tesla, the carmaker has a leading position in the premium segment of the Chinese EV market — the largest in the world. It’s one of many Chinese equities that have skyrocketed in the country’s recent stock market rally. So, is now the time to buy the shares? Or might the company’s share price crash back down to earth? Here’s my take. A boost from Beijing An extensive raft of stimulus measures in China is…
By Miguel Lo Bianco VALDES PENINSULA, Argentina (Reuters) – Mountains of plastic waste from the fishing industry have covered the coast along the Valdes Peninsula in Argentina’s Patagonia, threatening the lives of sea lions, fish, penguins and whales and also endangering human health. The coasts of the peninsula on Argentina’s Atlantic coast, declared a World Heritage Site by UNESCO for its natural beauty, have been dotted with crates, nets, buoys and other fishing tools thrown into the sea and washed ashore. “These plastics are made up of chemicals and pollutants that can cause a number of diseases in both humans…
(Bloomberg) — European and US stock futures gained in line with Asian equities ahead of US jobs data that will identify the path ahead for interest rates. An oil price rally eased after Middle East tensions led to the biggest one-day jump in almost a year.Most Read from BloombergEuro Stoxx 50 futures rose 0.2%, and contracts on the S&P 500 advanced 0.1%. Equities in Japan and South Korea rose while markets in mainland China were shut for a holiday. A gauge of Chinese shares in Hong Kong advanced as traders assessed its recent rally’s sustainability and await details of fiscal…
A general view of Isfahan Refinery, one of the largest refineries in Iran and is considered as the first refinery in the country in terms of diversity of petroleum products in Isfahan, Iran on November 08, 2023.Fatemeh Bahrami | Anadolu | Getty ImagesOil prices have jumped more than $5 a barrel since the start of the week amid intensifying fears that Israel could launch an attack on Iran’s energy infrastructure.The rally, which puts crude futures on track for gains of around 8% week-to-date, has surprised many market observers in that it appears to be somewhat subdued given what’s at stake.Energy…
Image source: Getty Images Investing in a combination of FTSE 250 growth, value, and dividend shares can be a powerful strategy for achieving a strong and stable return. Each type of share offers unique benefits, and combining them in a portfolio can help investors achieve a balance of capital appreciation and steady income while at the same time reducing risk. Growth stocks can enjoy spectacular share price gains as earnings take off. Dividend shares supply a stream of income that can be reinvested to deliver substantial compound gains. And value stocks provide a margin of safety that can limit price…