When is Google's stock split? Alphabet, the parent company of Google, will make the 1:20 split on July 15…
Bank of America: time to sell stocks
Bank of America has tracked signs of the upcoming stock market crash. The bank said that investors’ optimism over global recovery has pushed stocks to too high levels. BoA was keeping an eye on what share of stocks in the overall portfolios investment banks recommended their clients to have. It turned out that the current average level has reached 59%, which is really close to the risky 60%. As a result, BoA claimed that it’s time to sell up as historically most of the time stocks start falling when this 60% threshold is crossed.
China forecasts stocks’ drop
Not only Bank of America, but also China warned about bubble risks, which may lead to stocks’ falling. Central banks all over the world have to decide: when and how to reduce support as countries have started recovering. China cautioned that US and European stock markets are too high these days. And the overbought position of stocks in combination with the inevitable rate increase in the future may press stocks down.
What does it mean for a trader?
The good news for FBS traders is that they can make both buy and sell trades. So a trader doesn’t need to hold already an asset to sell it. Thus, traders have a chance to profit in case of either outcome. If all the things BoA forecasts are true, it means that more expensive and at-risk stocks will fall, while so-called value stocks will survive.
A value stock refers to shares that are at a lower price relative to their fundamentals. Just recently, Warren Buffett bought back $24 billion worth of Berkshire Hathaway stock. It’s a sign that big players start investing in value stocks. Moreover, Goldman Sachs advised paying attention to cheap-looking value stocks, which have a higher potential to grow in the current circumstances. For example, General Motors, Ford, Visa.
Don't know how to trade stocks? Here are some simple steps.
- First of all, be sure you’ve downloaded Metatrader 5 or FBS Trader app. FBS allows you to trade stocks only through this software.
- Open the MT5 account in your personal area (an account in FBS Trader).
- Start trading!
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
On Wednesday, September 22, Microsoft will be holding a product launch. The event starts at 18:00 GTM + 3.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.