When most of us think about safe-havens, the Swiss franc comes to mind. A pillar of historical strength and security, the Swissie is one of the go-to assets when financial waters become turbulent. In the midst of last week’s chaos in U.S. and global equities, one would think that the USD/CHF was in for a correction. This did not occur. Rates closed in the green for the third consecutive week.
In our experience, we find many investors approach choosing securities based on odd criteria—like perceptions of safety from risk. A common presumption we have encountered in this vein: Equities are risky because their prices tend to swing, sometimes a lot, in the short term. Investors often presume debt securities are safe because their prices tend to move less. Whilst equities are more volatile than some fixed-interest securities in the short run, we think conflating the terms volatility and risk is an error. All investments carry risks—different securities merely emphasise different risk flavours. We think too many fixed-interest investors fixate on volatility and discount debt securities’ risks. Here we will discuss one such risk: Default risk—the risk the debtor doesn’t pay interest or principal due.
US equity markets have seen a dramatic fall over the last week. There have been a few reasons why the sell-off has taken place, but no one key moment that led to the selling.
The SPX has dropped 200 points in a matter of days after yields started rising in the US and fears around future growth started to become a very real proposition.
At the same time, it is now clear that the tariffs on China are here to stay and that ultimately means yet another tax on the American people.
Over the last few years, all sell-offs have quickly been met with an equally quick buying frenzy. As buying-the-dip has been all the rage.
However, this week we have seen a key indicator get triggered and it could spell trouble for equity investors.
Technical Outlook
The key indicator for many long-term investors and those in the asset allocation business is the 200-SMA.
This is often referred to as a “regime filter” and it isn’t a sell or buy signal as such. Basically, when price is below the 200 SMA, markets are more likely to crash. Look back at the charts of the period through 2007-2009.
Price only crashes severely when we get below the 200-SMA. The same type of process is true of stocks. You never see a stock crash from its highs.
It’s a slow period of grinding lower, before the washout at the bottom.
That’s why institutions and big money player watch the 200-SMA. This week we’ve have closed just on top of that mark. But we are close. We actually did close below it during the week.
Even earlier in the year, the SPX didn’t really break the 200, despite all the volatility and headlines. So keep a close watch this week as if we hold below, we could well be in for some increased volatility ahead.
Kakao’s earnings in the third quarter will be slow, said NH Investment and Securities on Oct. 12 lowering the target price to 150,000 won (US$132.05) from 170,000 won.
KUALA LUMPUR: Bursa Malaysia found its footing on Friday following a two-day rout that shaved about 3.5% off the benchmark FBM KLCI.
Equities are plummeting, President Donald Trump says the Federal Reserve’s gone ‘loco’ and the trade war’s heating up, yet traditional havens in times of trouble such as gold are not be getting any love.
LONDON- A selloff in global stocks tore like a wrecking ball through emerging equities on Thursday with the key index flirting with its biggest daily tumble since the surprise Brexit vote stunned markets in June 2016.
Asia shares pressured, but not dramatic
With the biggest one-day losses in about eight months plaguing Wall Street yesterday, Asian equities continued the bearish sentiment, though not quite to the same degree. Considering the US30 index fell 3.9%, the SPX500 4% and the NAS100 5.3%, today’s losses of 0.97% for the JP225 CFD and 2.4% for the HK33 index and 0.66% for China shares appear small by comparison.
Ring Energy Inc. (REI) had a rough trading day for Wednesday October 10 as shares tumbled 9.05%, or a loss of $-0.77 per share, to close at $7.74. After opening the day at $8.54, shares of Ring Energy Inc. traded as high as $8.54 and as low as $7.61. Volume was 1.16 million shares over 8,128 trades, against an average daily volume of 733,020 shares and a total float of 60.39 million.
Stoneridge Inc. (SRI) had a rough trading day for Wednesday October 10 as shares tumbled 5.78%, or a loss of $-1.53 per share, to close at $24.93. After opening the day at $26.43, shares of Stoneridge Inc. traded as high as $26.43 and as low as $24.83. Volume was 345,381 shares over 3,179 trades, against an average daily volume of 279,496 shares and a total float of 28.48 million.
US Nuclear Repository Is Among the Federally Owned Spots Identified for Renewable Energy Projects
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Accenture (NYSE:ACN) PT Raised to $365.00
Coca-Cola (NYSE:KO) Stock Price Up 0.4%
Intuit Inc. (NASDAQ:INTU) Sees Large Decline in Short Interest
Pure Storage (NYSE:PSTG) Stock Price Up 0.3%
Peru Declares State of Emergency in Regions Scorched by Forest Fires
Haiti Creates Council Tasked With Holding First Elections in a Decade
Lebanon Is Rocked Again by Exploding Devices as Israel Declares a ‘New Phase’ of War
Cyprus Approves Electricity Cable to Link Its Power Grid With Greece’s
