What does stock market dip mean for M&A?
Which cover: new articles | breaking news | earnings results | dividend announcements Get email alerts on This article was sent to 358,469 people who get the Macro View newsletter. Get the Macro View newsletter Long/short equity, special situations, growth at reasonable price, deep value Send Message| (2,287) Stock Market Shock Dictates Continued Avoidance Of Passive Long Positions Jan. 26, 2014 5:03 AM ET | by: Markos Kaminis Includes: BXDB , BXUB , BXUC , EPS , IVV , QQQ , RSP , RWL , SDS , SFLA , SH , SPXU , SPY , SSO , TRND , UPRO , VOO When I first offered a warning to investors on New Year’s Eve , it was not plainly obvious what was about to happen. Today, pundits are pulling out every possible excuse for why stocks are getting trashed.
The Myth of a Stock-Picker’s Market
You can argue that it was profit-taking and investors not wanting to take the tax hit this year, Canally said. Its a reasonable argument given the types of stocks bearing the brunt of the pain. The four-worst performing sectors on the S&P 500 Index for 2014 are the same ones that hit their 52-week highs on Dec. 31. Since the beginning of the year, the materials sector has fallen 5.1%, consumer discretionary top ten stocks to buy right now stocks are down 5%, while industrials and energy stocks have both shed 4.9%.
Stock investors trash market darlings, face Apple, Fed
Where she stops, nobody knows. But the conviction that stocks are due for a correction meaning at least a 10% slide is the worst-kept secret on Wall Street. Pundits have been opining for months about how stocks are overbought and investors are too optimistic. Its about time stock prices turned south. Even a year without a meaningful correction is too long a stretch.
Why a stock market correction should make you happy
They get computers to do it for them. High-frequency trading is a trading method, where co-located computers – as they are referred to – make billions, possibly trillions, of transactions per day, with the aim of scalping a few cents with each trade. This now accounts for over half of the stock market trading in the United States. High-frequency trading capitalises on the phenomenal speed of supercomputers in analysing and responding to market data Of course, human-beings cannot keep up with these computer behemoths.
Should Computerised Stock Market Trading be Banned?
For the past couple of years, market watchers have predicted M&A booms — thanks to such things as improving macro-economic conditions, generous credit and staggering corporate cash hordes. But those predictions have fallen flat, largely because many prospective buyers have been too nervous that they’d be overpaying. Basically the inverse of what happened after the financial crisis, when the universe of prospective sellers dwindled. There could be a case that the recent market moves would spark new M&A, since assets are theoretically cheaper than they would have been just one month ago.
Here’s why they’re wrong. By Jan. 24, 2014 6:35 p.m. ET Here we go again. Every year, a chorus of investment professionals proclaims the arrival of a “stock-picker’s market” in which active managers will shine.