The Summary

Asking the professionals: Where to invest?

Posted: 9 October 2020 by The Summary

Each quarter Bloomberg asks a group of trading heavy-weights for their best picks. Given we’re in a recession and pandemic, this year’s suggestions have been quite interesting.

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How strategists are investing during the elections

Posted: by The Summary

Asian stock market analysts aren’t comfortable with the November 3rd elections and are raising cash to buy safe assets such as gold. When CNBC asked thirty analysts for their views, ten said they thought it was a good time to move out from expensive US tech stocks and instead buy up cheaper and more stressed stocks such as tourism and travel, banks and industrial sectors. 

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Investing for beginners – a quick guide

Posted: 6 October 2020 by The Summary

In this blog post on investing for beginners I’m going to explain how I would approach the markets as someone who just wants to get going with the least hassle possible, wants the lowest fees and wants the simplest way of investing. If tools like Moneybox or Nutmeg attract you, but their fees do not, this is for you! As always, everything in this blog is how I would go about things and is not financial advice.

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Hybrid & Electric cars on the rise in Europe

Posted: 30 August 2020 by The Summary

Hybrid and electric car sales soared last month taking the total sales to its highest in 10 months. Total sales were down 4% from last year to 1.28 million, yet plug in hybrids quadrupled while electric vehicles more than doubled.

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Facebook’s advertising troubles

Posted: by The Summary

iOS 14 will soon stop user device id tracking preventing companies from tracking data across apps. In 2019 Facebook reported 69.66bn in ad revenue, with about 98.5 percent of Facebook’s global revenue being generated from advertising. This recent change by Apple has been cause for alarm at Facebook who estimate that this change will cut revenues on iOS devices by 50%.

If this planned removal of device id tracking continues, Facebook may consider pulling back their Audience Network product which they claim would most affect small businesses which have smaller budgets and who need the highly targeted advertising

What the NASDAQ PE means

Posted: by The Summary

I like tech as a sector to invest in. It has good growth potential, running costs are often low and businesses have a global audience. The recent meteoric rise in tech stocks has me worried though, and I’ve been thinking we may be due a market correction soon.

Nasdaq 100’s price earnings ratio for the past ten years has been an average of 22, while currently it sits at 36. For tech to fall back within its normal range, it would require tech companies to have at least three years of 20% annual earning growth.

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Looking beyond the vaccine

Posted: by The Summary

While everyone is gambling on who will create the new vaccine, I’ve read some interesting articles about looking beyond and on how it will be distributed, stored and administered. The U.S. Biomedical Advanced Research and Development Authority estimated that to vaccinate the U.S they would need between 650 million and 850 million needles and syringes. Many countries have been buying reserves for a while, but the American Strategic National Stockpile held just 15 million until it started placing orders on the 1st of May.

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Here’s my investing style

Posted: 11 August 2020 by The Summary

Everyone’s likes making a quick buck in the markets, and sure, they come by from time to time, but you also lose a fair bit of the time. It’s all about timing, and I know for a fact that I won’t beat the bankers or high frequency traders at that. So I take a different approach and have a different investing style.

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Someone took a bite out of Apple

Posted: by The Summary

Bank of America analysts downgraded Apple on Wednesday to Neutral citing “risks should not be ignored”. This comes as they also increase the price target from $420 to $470 “which assumes low-single digit year over year revenue growth and flat margins.”

“We are downgrading shares of AAPL to Neutral as we view risk reward more balanced at these levels”

BoA sees risks particularly in costs to manufacturing their 5G iPhones, an unsustainable trajectory (30% growth) due to high margin App Store growth and a potential risk of a higher tax rate should the Democrats win in the U.S. elections.

This stock performs better than Tesla

Posted: by The Summary

Sea, the Singapore-based gaming, e-commerce and payments company has quietly become the world’s best-performing large-cap stock, rising up 880% since going public.

Demand has surged during the pandemic due to their games such as Free Fire, which attracted 80 million daily active users in more than 130 markets. Its Shopee platform also overtook Alibaba’s Lazada to become the top online store in Southeast Asia (source: iPrice). This business accounts for more than 40% of Sea’s revenue in 2019, up 2.3% from 2017.

Sea is now the biggest company in Southeast Asia with its market value at $65 billion, overtaking PT Bank Central Asia. Revenue has also surged, jumping up 163% to $2.2 billion in 2019.

DBS Bank Ltd have downgraded their recommendation on Sea to sell in July as a result of Indonesia’s new tax regulations for cross-border transactions and because of the capital required to grow its payment platform.