Here’s a brief update on this week’s stock market performance from LOM Financial : Read more:
Markets rallied strongly last week, with the MSCI World index gaining 2.86% and the S&P 500 gaining 2.95%.
The Brexit endgame is coming more into focus. Last week, the British Parliament passed the Spelman/Dromay amendment by a vote of 312 to 308. The amendment was a non-binding ruling to prevent a hard Brexit under any circumstances. Perhaps paradoxically, Prime Minister May whipped her party to vote against this amendment. Her rationale appears to have been to force the issue of the Parliament agreeing terms on the exit. While there is talk of putting the terms of an orderly exit up for another vote, it appears unlikely the vote would go through since the deal has not changed materially and there is less incentive for voters to change their position.
This brings us to the March 29th Brexit deadline. Britain is likely to request an extension to their exit as they attempt to come to an agreement on the exit terms with the EU. This would require the EU countries to unanimously agree to allow Britain to extend their membership, something Nigel Farage has been lobbying that they reject. If they were to reject an extension, Britain would default into a hard Brexit. The likelihood of that occurring are low but non-trivial. The more likely outcome would be an extension, which presents certain challenges since an extension beyond July 1st would mean Britain would be required to participate in the European Parliament election. At this point, it is unclear what a short extension would accomplish as Parliament is resolutely against the proposed terms. While the whole ordeal is rather taxing, the prospects of entering a hard Brexit have diminished (a good thing). JP Morgan was suggesting a 10% likelihood of a hard Brexit.
Boeing 737 Max
More headwinds facing Boeing as their 737 Max have been grounded in most developed countries. This is a major hit to the company, which was set to deliver over 5000 of the planes. A surprise move in which the FAA reversed an earlier position that the planes were airworthy, causing the company to continue to fall. Boeing is now facing an investigation by the Department of Transportation in to whether enough vetting had taken place prior to the 737 Max release.
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Income-driven millennials will likely become multi-millionaire investors in the future. However, venturing into the risky world of investing can be a great challenge for the young generations. Nonetheless, the market sector has higher earning potential among other investment options, below are some of the many compelling reasons why the young demographics must invest in the stock market:
Apart from global economic growth, the rapid pace of technology advancement has transformed the way we trade stocks, today. Millennial investors can take advantage of the efficient trading tools such as cloud-based software and online trading platforms, developed to provide easier access to investors and keep track their investments anytime, anywhere.
Has a Variety of Safe and Profitable Investments
Alongside with Finance, the Tech sector has been one of the best-performing stocks in the market, for years. In terms of revenue, large companies like Microsoft, Apple, and Amazon are highly recognized as the most dominant tech stocks in the market. As they remain robust and successful despite economic crisis and uncertainties.
A Great Wealth Builder
Saving earlier for stable and financially secured golden years can be the best thing every millennial should learn. For instance, Warren Buffet, widely acclaimed as the richest business tycoon in the investment history was known to have built his fortune by trading in the stock market decades back until to date, following Benjamin Graham’s principles of value investing, according to Forbes.
Check out the latest stock market performance from LOM Financial, today:
Markets ended the abbreviated week as a warning of a global slowdown was offset by strong earnings. The MSCI World Index ended the week up 0.07% while the S&P 500 lost -0.21%.
IMF Warns of a Global Slowdown
The International Monetary Fund cut 2019 global growth estimates by 0.2% to 3.5%, citing risks of a more significant downward correction was rising. In the US, the effects of fiscal stimulus are expected to unwind. Mexico experienced a significant downgrade to growth reflecting lower private investment. The high levels of public and private debt mean capital markets should be more sensitive to downturns than they have been historically.
The IMF report mirrors the World Bank January 2019 assessment (published on 1/8/19), which sees headwinds from the removal of accommodative policies that supported the protracted recovery along with more extreme weather events creating challenges in developed and developing countries. Lax credit markets have resulted in a growing number of developing countries holding questionable levels of debt.
Market Wrap Up
Earnings releases have been mixed but strong positive revenues and EPS surprises on Wednesday from Proctor and Gamble, Comcast, and United Tech Corp marked the turnaround that helped bring markets back to levels near the beginning of the week.
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