Finance: Track price action, not pundits' talk

Finance: Track price action, not pundits' talk

PHUKET: As I am writing this, I haven’t turned on a TV in more than 10 days. So I am not getting any news from a verbal source about nuclear confrontations with North Korea, Trump uncertainty or whatever else is going on in the world. However, I have been reading the news and it’s different when you read news versus just listening to people talk on TV. I am also watching for the price action of the market, key indices and stocks. What I see is that despite all the scary news and uncertainty, the market appears to be coiled with many key indices or stocks about to spring forward. Instead of dwelling on the negative, just

Tuesday, May 23, 2017 | 04:00 PM

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Finance: Market pullbacks make great opportunities

Finance: Market pullbacks make great opportunities

PHUKET: Pullbacks are great opportunities to see where the strongest stocks are, allowing investors to make a watch list of potential leadership stocks or sector ETFs that are holding up in the face of bad news. Since early March, we have been seeing the S&P 500 undergo some consolidation involving a pullback. A 2-8 per cent pullback is perfectly healthy and normal, with anything higher being more unusual, but nothing to panic about. This time around, we saw financial stocks getting hit the most. This brings us to about 30-35 per cent cash for clients’ long-term growth accounts. Despite the increasingly scary news (s

Tuesday, May 16, 2017 | 02:00 PM

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Business Buzz: Email marketing missing the mark

Business Buzz: Email marketing missing the mark

PHUKET: Recently, my business partner and I have been analyzing email marketing and what came to light was quite a surprise. He is a systems engineer so it is fair to say his level of knowledge of IT far surpasses my own. We were collaborating on our latest project and the issue of email marketing and whether it was effective came to light. The concept is fairly simple. You collect potential customers’ email addresses through some kind of capture technique and enter them into your system. Once the addresses are in the system, you fire away emails to your heart's content. Sounds simple right? So what could possibly go wron

Wednesday, May 3, 2017 | 02:00 PM

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Finance: Using fundamental and technical analysis to gauge stocks

Finance: Using fundamental and technical analysis to gauge stocks

PHUKET: When I decide that a stock could either be worth buying or worth placing on a watch list, the first thing I do is look at the stock’s fundamentals using a stock research and marketing tool called ‘MarketSmith’. Using small cap LGI Homes (NASDAQ: LGIH) as a sample stock, let’s look at some fundamental data that will help decide whether its worth owning or watching. Return on Equity (ROE) is a key measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders’ equity. An ROE of more than 10-15 per cent is good, while LGIH’s ROE of 25 per cent is very hea

Sunday, April 23, 2017 | 02:00 PM

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Finance: Market pullback nothing to worry about

Finance: Market pullback nothing to worry about

PHUKET: As of late March, US stocks appear to be cooling after strong gains since the US elections. Over the next 1-3 months, I expect further market consolidation with a pullback by major market indices to the 50-day moving averages level being a real possibility. The Dow Jones could fall below 20,000, while for the S&P 500 index, a 3-5 per cent pullback to a support level at the 2,300 mark would still indicate a healthy market. What I don’t want to see is the S&P falling further than that, as then we may start to see other (more bearish) technical formations start to form on the technical charts. Over on the NA

Monday, April 17, 2017 | 11:00 AM

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Finance: What interest rate hikes mean for investors

Finance: What interest rate hikes mean for investors

PHUKET: Early last month, the US Federal Reserve raised interest rates, with the market largely ignoring the long-expected move. With at least a couple of more rate increases expected in the near future, I would still not expect the market to suddenly turn bearish. If the Fed thought the US economy was still too weak, they would not be raising interest rates. When we had the 2008-09 financial crisis, the market was like a patient who had just had an accident and ended up on the operating table with the underlying economy nearly dead. The market bottom was then followed by a small recovery rally, then pullback, and then a b

Sunday, April 9, 2017 | 02:00 PM

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