Market Advice - Week Two
What Not To Invest In - Tesla.
Tesla’s share price dropped significantly last Thursday, after Goldman Sachs downgraded shares of Tesla from ‘Buy’ to ‘Neutral’. The reason they gave for this is that any delays of the Model 3 launch could be detrimental to their share price, and after the historical delays of past products produced by Tesla, it is likely that the Model 3 will be no different. There has even been a formula created to predict the Model 3’s launch delay, that can be seen here.
The share price dropped subsequently after this downgrade, plunging Tesla’s share price from approximately $210, to the current $196.61. It is likely to stay there unless a surprise non-delay is had, or anything else occurs that contradicts this downgrade. Wait for positive news until you invest in Tesla.
What To Invest In - Deutschbank.
Deutschbank’s share price rose recently (6th October, 2016), up by 1.2%. This comes after the IMF’s (International Monetary Fund) comments that the bank is far too large an organisation to be allowed to fail.
This is very true words, as we have seen with British banks, large private banks have become so large, and few in terms of competition, that if one fails millions of people would be affected that would trigger an economic meltdown as panic settles in. Thus, banks will always be bailed out so as to avoid losing political support for the governing party of the time. This certainly holds true for Deutschbank, despite negative comments Angela Merkel made about not bailing-out the weighty bank.
Invest in them whilst they are cheap, and hold them until an inevitable bail-out (if not merger) lifts the share price significantly.
What To Invest In - USD/EUR.
Look at those jumps! Lots of rapid increases with equally rapid decreases. With the GBP falling in value tremendously after Brexit, many FOREX investors are looking for an alternative from USD/GBP. As a result, many have chose to invest in the EUR, particularly near the GBP/EUR Flash Crash from last Friday (7th October, 2016), highlighting that switch that so many investors are making. As many more GBP crashes are sure to awaken in the coming years up towards the Brexit itself, invest in USD/EUR now and cash in later near another GBP crash (when many investors begin to make that switch that I earlier discussed), or even after a potential gradual rise as more investors switch from USD/GBP to USD/EUR. Certainly a long term investment either way.
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This advice is not professional advice, and I am in no way responsible for your decisions with any use/influence of this, or other information I have given you.