Everyone is aware of how bearish the global markets are including the US markets, especially today. Nonetheless, let’s consider the thought of premature selling. There are a few key events and outcomes to consider, and look forward to. First, Q3 earnings. We are about a month away from Q3 earnings where banks will kick off the earnings season. Only then we will know whether the stocks current valuation is justified and whether the companies guidance signal a positive or negative outlook. Selling now seems early to me as Q3 earnings season can provide a broader and clearer picture to guide investors decision making. We don’t wish to end up selling quality stocks at a bargain price right now. Second, Fed meetings. Only when the precise timeline of when the Fed is going to taper and by how mu

Based on history, the next few months are seasonally weak period for equities. The concerns of the potential spread of the highly contagious variant increases downside risk noting that the seven-day average of new daily coronavirus cases was 85,459 as of Monday and news like New York City expecting to require proof of vaccine for indoor dining and gyms may dent positive sentiment and impacting the reopening stocks. With most biggest companies having released earnings and the markets having little reaction along with the upcoming Jackson Hole and FOMC events where the Fed could very well begin discussions on tapering and rates, it is not unreasonable to take some risk off the table and be cautious moving ahead. $S&P 500(.SPX)$<

Finally the announcement by the Fed has arrived - they will begin to reduce the pace of their monthly bond purchases, a process known as tapering, as soon as late November. Markets are cheering with the major indexes closed at record highs, or should we be? A single key word in the Fed statement caused me some concern. The word is ‘expected’. In their statement: “Inflation is elevated, largely reflecting factors that are expected to be transitory”. “Expected to be transitory”, it can also mean elevated inflation may turn out to be unexpectedly lengthier than what we hoped for, right? And this will have impact on consumer spending and the list goes on. Here is why my view that elevated inflation will persist for some time and we are not out of the woods yet. The world’s second largest econo

Something strange is going on in the markets. I know Halloween has just passed but no, it has nothing to do with any paranormal activities. It is typical that the Cboe Volatility Index $Cboe Volatility Index(VIX)$ trades inversely with the stock market, however, on Friday, I noticed the US stock market (Dow, S&P500, Nasdaq) closed in the green while the VIX surged higher. In fact, the VIX closed at $16.48 or 6.74% higher. That is unusual.The VIX is known as the market’s fear gauge. Basically the market prices of S&P 500 put and call options are used to calculate the market’s expected volatility in a 30-day time frame. With the VIX surging up, this could reflect that investors want to protect their portfolio and therefore they drive up the pric

Interesting times we are living in, when bad news appears to be good news. Take the disappointing private payrolls number which was just released hours ago. In August, private payrolls rose by 374k which was well off the estimate of 600k. However, judging from the greens in the markets, investors are cheering. The economy may not be growing at an ideal pace which is bad news, but the good news (which I believe from the investors point of view) is that the Fed will continue to support the economy as the Fed noted that there's “much ground to cover” before rate hikes. So the good news amidst the bad news is that we may continue to enjoy accommodative money policies with interest rate hikes off the table for now, which benefits stocks.&nb

Wall Street is back again! Although we are still off the highs, the rebound appears solid as investors had likely oversold their positions on Mon. It is a good opportunity to rebalance your portfolio to deal with the emerging trends observed - plunging yields, rising inflation and the covid delta variant spread. Big Tech in my humble opinion will weather through. $NASDAQ-100 Index ETF(QQQ)$may have some more room to climb. 

$Netflix(NFLX)$is under some pressure as it misses on earnings expectations slightly. As Netflix ventures into the gaming space, initially at no cost to paid subscribers, we can reasonably expect paid premium add-ons to come infuture. Higher revenue for the company is ahead as Netflix captures more market share in the growing gaming space. This could present agood opportunity to accumulate when the stock is weaker today.

$DiDi Global Inc.(DIDI)$ shares are tumbling again as Bloomberg News reported about regulators considering penalties ranging from hugefines to delisting. Let us rewind back in time, I recalled back then $Alibaba(BABA)$shares were under pressure due to regulators and eventually a huge fine of US2.8 billion was imposed on the company. Here comes the silver lining, $Alibaba(BABA)$rose after the news about the fine, likely because it is way better than the other far worse outcome that could happen. So IF Didi was to be slapped with a fine instead of getting delisted, there is good reason for investors to cheer about.

The S&P500 and the Dow Jones Index had fallen for four trading days this week and the Nasdaq Composite was not spared too, it fell 1.6% for the week. In this situation, it is natural to be tempted to think about selling early to limit more potential losses ahead but also tempted to think about the potential recovery from this terrible week. I like to share here on how I navigate the stormy market weather. First, I try to make sense on the likely factors that are causing the weak week for the broader markets. I think uncertainty sums the factors up nicely. For one, uncertainty about what will be communicated at the upcoming Federal Reserve Sep 21 meeting - the precise timeline when tapering will start and exactly how much will the Fed reduce the pace of asset purchases. Uncertainty abou