Tuesday 18 November 2014

Investing in November


November Might the Best Time to Invest Your Money in the Rather Unpredictable Financial Market 

The year is about to end and investors become even more relentless to target profitable stocks, forex, and oil, which may also be in anticipation of year-end rally. According to Dow Jones figures, November has always presented a favorable beginning for stock investments with gains of 7.5% average that stretch to the next six months, against gains of 0.3% from October backwards (six months). However, the financial market is neither 100% symmetrical nor predictable. 

During 2014, the UK economy was strengthened and financial crisis seemed to have reduced as compared to 2008's records. On the other hand, the financial market of United States also saw great economical improvements, and has been better than last three years. Even the Federal Reserve consecutively cut back its bond purchase from $85 to below 40%. In the wake of all these recoveries, the Euro zone is still struggling to bail its banks while interest rates are plunging to very low level, a definite sign of recession once more. Asia seems to be 50/50 with China's booming market and Japans' backfired deflationary style. 

Therefore, the endeavor to closely look at November investment prospects is a crucial submission to support any admission that the month presents good opportunities for investors.

 Improvements Seen during October, 2014

Although the month of October had some volatility, with a history of market crashes, the month closed with S&P 500 as well as Dow Jones rebounding to record levels. The timely investment has rose during October, so it can be expected that November will bring a lot more success in international financial markets. According to the updated figures, the 2008 financial crisis had its signs in November of the preceding year. In the midst of the boom, November became a month to safely invest in forex, stocks, and other derivatives.

November, a God Financial Period

November seems to be a good investment month for financiers. This is because the subsequent 6 months have always seen good yield of November investments, and the monthly risk remained close to nil. There are bright chances that the Federal Reserve will increase interest rates in the coming months which will result in better outcomes for both the investors and consumers. 

If interest rates are increased, backed by the fact that the Fed has ended the bond-buying quantitative easing in October, then this hint presumes to cause high market volatility in November.

Whenever there is election in a state, November has dubbed 'the election month'. As such, the month presents a chance for strong cyclical stocks with equity returns hitting 7% for three months subsequent to the elections. In the years without an election, stocks and financial markets tend to outperform as reflected in escalating consumer spending and industrial figures.

Technology Market flawless sales rise in November

The technology market is also expected to see huge financial growth during this month. The rule that one ought to sell stocks in May is a direct reference to the purchase made in November. As 'buy in November' is the new rule of thumb following increased purchases of electronics in holidays, the sector seems to perform fairly well.

Two months ago Apple released its Q4 financial report. As compared to the previous year, apple recorded a 16% sales increase hitting 39.3 million iPhones during the reported quarter. As escalating sales attributed by new iPhone 6 and iPhone 6 indicate a high financial performance, the increasing value of its stock is also centered on the fact that the selling price of the iPhones is also rising. The company competitive advantage that places it as a Smartphone giant is based on its brand differentiation in innovation, design, and unique solutions to the market. Nothing can be more wanting than stocks that are preyed by its own mother. Apple repurchased about $17 billion shares, an acquired taste that marks accumulated buyback of $45 billion stocks. 

It is very close to right to call November a blossoming month for Facebook stocks. The past four quarters have seen a steady growth in stock price and formidably widening and deepening market as per the year-to-date stock performance. With increasing user base through mobile usage over the past 12 months attracting even more Ads soar Facebook mobile Ad revenues to new heights. The financial performance of Facebook is impressive based on its accomplishments so far, not to mention the company is backed by advantageous financing prospects such as - its yet to be monetized - Instagram. Its other company that is in the process of monetizing, WhatsApp, comes as a better cheap source of capital to light Facebook future. 

Intel has scored high up, $14.6 billion in revenues for its third quarter then consecutively climbing to record revenues of $14.7 billion in its fourth quarter. Data points to a significantly strengthening business in terms of revenue generation with its impressive operating income of $4.5 billion as reported in the third quarter this year. Although this stability has been met with headwinds when compared to its competitors’ performance such as Microchip and Texas Instrument sales in mid-October, Intel has beaten analysts’ earnings forecasts. Intel optimistic analysts are winning by the strong figures reported by the company. 
 
November Attracts Stocks

Probably with year-end rally driving gains in the united states financial market coupled with the start of a new fiscal year for most companies, not to mention year-end bonuses, November is a tailwind for stocks, forex and oil. 

The best investment approach recommended in November is to look for stocks. These have high prospects with great outlook. Therefore, as a cyclical growth month, stocks in mutual funds appear to be profitable, which will have a strong correlation of exchange-traded funds. The motor industry is a potential investment idea with latest S&P Capital IQ hitting a high rate of five-star stock.

Notwithstanding, this is a glimpse of the industries to invest. November presents a myriad of stocks which is beneficial for consumer, thus, investing in financial markets during this month will be great.

No comments:

Post a Comment