By Al Emid  

Toronto – Canada

 

 

 

 

 

Al Emid has worked in communicating ideas and concepts since beginning his career at an educational television network in 1967.  He is the co-author and author of several financial books, most recently The Emid Report on Volatility 2019 available on all major book sites.

 

 

 

 

 

Chapter 23

The Market is Shifting and Confusing – Part Two

 

 

 

 

In a previous edition of this column I suggested that constant shifting and moving market conditions in which events turn out wildly different than anticipated intimidate some investors.  In that context I looked at geopolitical influences and the BREXIT saga.

 

I also suggested that some of these factors might lead some investors to unduly concentrate on low risk (and therefore low return) investments or retreat from the market. However, low interest rates mean that retreat is not an option.

 

In fact, there are over a half dozen other conditions on the list. 

 

Recessionary fears overhang many investment decisions. I have never believed that there would be a recession in 2019 and I currently doubt that a full recession will occur in North America before mid-2020 and that is at the earliest..  However, I can admit that opinion is not universally shared and some point to a recession looming in Europe and a slowdown in the United States. Whenever it occurs, it will dampen some stock valuations. Investors can deal with this by consulting their advisors to determine the extent to which their holdings are exposed and adjusting holdings.

 

The outlook for the FAANG stocks — Facebook, Amazon, Apple, Netflix and Google — overhangs some of their financial futures. Netflix, until recently dominated the streaming market, now faces competition from a host of other players including the Walt Disney Corporation. It also overhangs their political future as Democratic Presidential candidate Elizabeth Warren has said she will break up Amazon, Google and Facebook This does not necessarily make it advisable to avoid them completely but may speak to reducing their weighting in an investment portfolio.

 

Disclosure: I do not own shares in any of the companies listed in this article and have no plans to invest in any of them.

 

 

 

 

 

 





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