September is a month which will make or break your overall portfolio for the year 2018. Early in Q1, the bear market wiped out all the fantastic gains for Q4 2017. Onwards recovery after 6 months, it looks like the market may correct for better or worse.
Argentina raised interest rates beyond 60%. Turkey Lira currency has fallen more than double. Brazil facing a recession. These are all ripple effects impacting other emerging markets this very day.
In the more developed markets, the East Asia and Europe markets are being hit with Trump Trade wars. China is officially in correction mode for dropping more than 10%. The UK and EU are taking a huge hit from the interest rate rise from the USA.
US markets are hitting all-time highs at the start of September. Both Apple and Amazon hitting the trillion dollar market capital dream. The high street retails and sports clothing sectors are recovering and hitting all-time highs. Cloud King’s company such as (CRM, VMWARE, Adobe) all growing in a straight line. Is this time for the huge plunge? Honestly, no one knows and only time will tell.
I am holding almost all the stocks in the Coo’s Hot Stocks list for the UK market. Do take profits for any stocks purchased for the 2018 year. It’s a period to grow your cash holdings. With the political uncertainty, the UK may have some waves to ride over the next three months.
The recent 0.25% interest rates rise did NOT boost the currency or the FTSE markets at all. The Bank of England failed to convince investors to return to the Majesty’s land. Taking a step back, there are better opportunities elsewhere such as Japan, Asia, India and the great USA.
However, I am still positive on Vodafone and Rio Tinto. Both high paying dividend companies recently dropped more than 20%. Vodafone is going through a phase of securing the next 5G network globally in Australia, South Africa, EU and India. Two merger deals occurred in the last three weeks. For the next 3 years, I am speculating that Vodafone may grab the home broadband market. With the 5G wireless high-speed internet and everyone going mobile, there are fewer reasons to own home broadband. Buy if you are in for the long haul and excellent dividend payout.
Rio Tinto is focusing on lowering cost and pushing for the demands for battery minerals for the future of electric cars. Perhaps do consider transferring any major oil companies for a future-proof commodity. At $1bn buyback, 6% yield and PE ratio 9.5; RIO TINTO is a winner.
VODAFONE is 163gbx & RIO Tinto is 3535gbx today.
Amazon is still a company everyone fears. Hitting $2,000 a share and still expanding its business to many new sectors. I would recommend selling some holdings to bring home some profit and hold the remaining. There is a good chance it might correct over the next three months.
I am holding Activision, Nvidia, Disney, McDonalds, Berkshire and few other majors. Again, take some profits off the table if your cash holdings are low for the coming months.
There are two companies who are trading currently at a cheap valuation. FaceBook and BaBa are close to $160 for both shares. Recent of high around $200-$210 now fallen back down to earth. Potentially they could still lose ground to around $130-$150.
Honestly, Facebook is expanding to avenues to ensure you stay longer on the apps every single day (which includes Instagram and Whatsapp). Dating Apps, video streaming, live sports, cashless transactions, game streaming and more. They are not stopping. You will not see FB at this level again in 2019.
BaBa is not stopping and expanding to other areas such as the cloud, financial sectors and video streaming. If you take out the political context, you will have no reason to avoid this amazing company. Be patience with BaBa, in 2030 we are certain that BaBa will still be in the top 10 biggest company in the world.
As per my previous article on BMW shares, I am still positively bullish on the company.
Recent Adyen IPO released, read my review of this company shares, the company is currently only worth $18bn. I think this company will soon be moving into the $30bn mark in next 18-24 months. Take the risk and plunge! This company has more likelihood to succeed more than any other companies out there.
Spotify is only worth $30bn while Netflix is worth $120bn. Netflix has 120m versus 71m for Spotify subscribers. Do the maths!
Adyen is Euro650 & Spotify is $178 today.
During uncertainty situations like this, CASH IS KING! I am not worried at all even if the market crash down 20% next week. I am prepared and saved up for buying opportunities. If there was no correction, I will focus on value buying such as the 6 recommended good valued companies.
Price is what you pay, Value is what you get.
Go here for the list of COO’s HOT STOCKS!
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