In this blog post we will analyse the current stock market worldwide. We will look at the factors that are influencing the market and offer our analysis on possibility of which shares to buy or consider buying and when.
There are a number of factors that are influencing the stock market at present. The first one is the inflation related worry. The Consumer Price Index for United States of America is 296.171 for the month of August 2022. The inflation rate year over year is 8.263% (compared to 8.525% for the previous month). This factor will highly impact on which shares to buy and when.
As we know, inflation is an economic phenomenon that affects different aspects of the economy in different ways including on which shares to buy and when. On the one hand, inflation raises prices, which lowers your purchasing power. On the other hand, it lowers the values of pensions and savings, and increases the variable interest rates on loans. Assets such as real estate and collectibles usually keep up with inflation. In this blog post, we will take a closer look at the effects of inflation on which shares to buy and when.
The second factor is the interest rate rise by the US Federal Reserve. When the Fed raises interest rates, it becomes more expensive for companies to borrow money. This can lead to slower economic growth and higher unemployment, as companies retrench in order to cut costs. In turn, this can lead to lower profits and lower share prices affecting our choice on which shares to buy and when.
That said, not all sectors will be equally affected hence our choice on which shares to buy and when. For example, companies in the consumer staples sector tend to be less sensitive to interest rate rises because people still need to buy food and other essentials regardless of the state of the economy. On the other hand, sectors such as homebuilding and automobiles are more likely to be impacted because consumers are more likely to put off big-ticket purchases, like home buying, when interest rates are high. We will keep in mind this factor while analysing which shares to buy and when.
The 3rd factor is the ongoing trade war between the US and China. This has led to a lot of uncertainty in the markets and has resulted in a decline in share prices for many companies. This important aspect has to be kept in mind this factor while analysing which shares to buy and when.
So, which shares should you buy and when? Our analysis are as follows:
1. Tesla
Tesla share price is now interacting with the lows printed on the monthly chart on May’ 2022 (205.84) and June’ 2022 (208.70). Now if these lows are broken to the downside, we need to see whether it is bouncing from the lows printed on the monthly chart on March’ 2021 (179.85) and May’ 2021 (181.67). We will keep a close watch on how Tesla share price is interacting with these 4 lows to look for a buying opportunity in future. We will post then following this post of which shares to buy and when.
2. Apple
The iPhone maker has also seen its share price fall in recent months to 38.60% (at 132.88) from its high printed after Covid on January’ 2021 (182.62) but we believe it remains a sound investment. Apple is a cash rich company with a strong product lineup and we expect it to weather the current market conditions well if it is bouncing from our proprietary levels of 132.88 and 128.90 (low of June’ 2022). We will keep a close watch on how Apple share price is interacting with these 2 lows to look for a buying opportunity in future. We will post then following this post of which shares to buy and when.
3. Amazon
The online retailer has seen one of the worst fall in its share price in recent years due to concerns about its profits. Its share price has fallen in recent months to 78.60% (at 103.98) from its high printed after Covid on July’ 2021 (188.65) but we believe it remains a sound investment. We expect Amazon to weather the current market conditions well if it is bouncing from our proprietary levels of 103.98 and 101.31. We believe that Amazon remains a strong company with a bright future and its share price will recover in due course. We will keep a close watch on how Amazon share price is interacting with these 2 lows to look for a buying opportunity in future. We will post then following this post of which shares to buy and when.
4. Alphabet (Google)
The share price of Alphabet Inc is now interacting with the 38.20% (at 96.79) Fibonacci level drawn from the swing low of the year 2008 to the high of the current year. However, we believe that Alphabet remains a strong company with a bright future and its share price will recover in due course. We will keep a close watch on how Alphabet (Google) share price is interacting with the above low and the high (92.15) printed just after Covid in the year 2020 to look for a buying opportunity in future. We will post then following this post of which shares to buy and when.
Conclusion:
In conclusion, there are a number of factors influencing the stock market at present but we believe that there are still some good opportunities to buy shares and when. We will post in following weeks/ months which shares to buy.
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