Despite only being three months into 2018, investors have been on quite a wild ride. The market started off the year as it ended 2017, on a tear higher, then the brief crash in early February, which led to a nice calm recovery during the remainder of the month just to run into what I’m calling “Whipsaw March” with the market jumping higher and lower by more than 1% nearly every other day. Not only have the major indexes been extremely volatile, but some of 2017’s biggest winners, big technology and especially the FANG stocks have seen their prices fall more than 10% in 2018.
Big pops that reverse fortune and the big drops that follow always cause investors to wonder what they could have done to protect themselves from the decline without completely abandoning their position.
The most straightforward and most effective answer to that situation is to rebalance your portfolio. Rebalancing is when you bring the percentage of your holdings back in line with each other.
For example, if you have a portfolio made up of 10 stocks and each represents roughly 10% of your portfolio, you would have a ‘balanced portfolio.’ Now if one of your stocks outperformed the others and ended up representing say 25% of your portfolio, instead of just 10%, then you would rebalance by selling some of your shares in that company until it represented 10% of your total portfolio. Continue reading "Why Rebalancing Your Portfolio Is Important"
Hello traders everywhere. Stocks are trading higher after erasing slight losses from earlier in the session, as the Senate reached a deal that would resume full government operations.
The S&P 500 is hitting record highs, rising 0.5%, with energy and telecommunications as the best-performing sectors.
The NASDAQ is also hitting all-time highs, advancing 0.7%, with shares of Netflix Inc. (NASDAQ:NFLX) hitting a record ahead of their earnings today.
The Dow has gained over 70 points to establish a new intra-day record, with The Boeing Company (NYSE:BA) leading the way.
Members of the Senate are expected to advance a stopgap bill to keep the government open through Feb. 8. Democratic Sen. Mark Warner said the party has the assurance it needs on the budget and immigration issues.
On Saturday, the U.S. government shut down after a bill that would have kept the government funded through mid-February was voted against in the Senate. The shutdown continued for a third day on Monday after the Senate on Sunday failed to reach an agreement to break an impasse before the work week began in Washington.
Key levels to watch this week: Continue reading "Stocks Erase Early Losses After Senate Vote"
Hello traders everywhere. Netflix Inc. (NASDAQ:NFLX) is expected to release its third-quarter earnings shortly after the bell this afternoon. Netflix's stock hit a record high last week after analysts at Goldman Sachs predicted the company would post subscriber gains above expectations and raised their price outlook from $200 to $235, while JP Morgan's analyst raised their forecast to $225 from $210.
- Netflix revenue for Q3 2017 is expected to be $2.97 billion, according to a Thompson Reuters consensus estimate.
- EPS is projected at 32 cents, per a Thomson Reuters consensus estimate.
- The strong growth is based on continued subscription additions, despite price increases.
Shares traded above $200 for the first time Friday and continue to trade above that level today. Netflix Inc. (NASDAQ:NFLX) raised some of its prices earlier this month, including for its high-definition plan and 4K streaming plan. Despite the price increase, analysts believe subscribers will stick with the company and are bullish on its international growth.
Key levels to watch this week: Continue reading "Waiting On Netflix Earnings"
Hello traders everywhere. Strong quarterly earnings have propelled the DOW, S&P 500 and NASDAQ to record highs today. Just to give you an idea of how great earnings season has been so far. 34% of the S&P 500 components have reported as of today, and 78% of them have beaten expectations on the bottom line, and 73% have topped on sales, according to data from The Earnings Scout. I'd say that's pretty impressive.
The Federal Reserve will release its FOMC meeting minutes today at 2 pm, and it is widely expected to keep monetary policy unchanged, but investors will look for clues about the central bank's next move.
Facebook Inc (NASDAQ:FB) is set to report earnings after the close today. Wall Street expects Facebook to report second-quarter profits of $1.13 per share, based on the average estimate of 35 analysts who rate its stock. That's up from 97 cents per share a year earlier with revenue rising to $9.2 billion, a jump of 43% year-over-year. According to most estimates.
Key levels to watch next week: Continue reading "The Fed, Facebook and Record Highs"
Facebook Inc. (NASDAQ:FB) is due to announce earnings on July 26th after the market closes. Facebook tends to be volatile after earnings are announced and typically pop to the upside as Facebook’s earnings have continued to post robust growth. Back on June 2nd, 2017, I authored an article “Facebook Will Hit $175 By Year End” and with five more months to go before the end of the year, I think Facebook has a good chance of breaking through this number. Facebook has been on an uptrend heading into earnings and currently sits at $160 per share and while the stock is up 39% YTD. These numbers may seem staggering, and some would state that buying at these levels would be cashing the stock. Normally I would agree with this approach. However, I think Facebook is an exception to this situation. Even at these levels and YTD appreciation, factoring in Facebook’s projected growth with tech comparators such as Alphabet Inc. (NASDAQ:GOOG), Netflix Inc. (NASDAQ:NFLX) and Amazon.com (NASDAQ:AMZN), collectively known as the FANG stocks, Facebook is superior with a lower risk profile. Facebook’s projected growth is greater than Google’s and just shy of Amazon’s yet has a P/E ratio that’s lower than Google’s and a fraction of Amazon’s and Netflix’s. Regardless of the upcoming earnings announcement, this will be an immaterial event to the long term narrative for Facebook investors. I feel that Facebook represents value even after this massive run YTD and continue my long thesis. Continue reading "Upcoming Facebook Earnings - A Nonevent Long-Term"