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.
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