Brexit is Official – What Happens Next?

Well, once again the unexpected happened. The majority of politicians, bankers, and economists had made their concerns known regarding the damage that could be done by a vote for the UK to leave the European Union (EU). UK citizens took little, if any, of such warnings to heart, voting to leave the EU and stand on their own economic legs. What drove the decision?

Heritage Foundation economist Steve Moore advised that the results were unexpected by most observers or politicians who had tried to make the point to the working class that such an exit would disrupt the economy even further. Moore put forth his expectation that part of the reason for the vote to exit the EU is the lack of confidence in the political machine and leadership, and citizens being tired of feeling that they are underwriting the economies of other EU countries through bailing out failing policies such as those that placed Greece in financial straits.

Market Trends After the Brexit Vote

Whatever is behind the decision made by UK voters, the impact to market trends has been immediate and extends far beyond the borders of the British Isles. US markets including the S&P 500 experienced the largest single-day drop in nearly a year. US companies further anticipate that over the next few months or even a year or two, trade with UK interests could be impacted as new agreements are negotiated. Eyes are focused on US Federal Reserve Chair Janet Yellen for her interpretation on the Brexit impact on US interests and how the Feds may react.

This presents a not-so-rosy picture for workers whose retirement plans are based on performance of a 401K or other investment portfolio largely dependent on stocks. Dropping stock values may significantly impact many of those nest eggs and even delay retirement dates.

Is There a Positive Side to Current Market Trends?

As is usually the case, there is a bright side to current economic trends.

Interest rates are expected to remain low to avoid further weakness to an already fragile economy. This could be an incentive for homebuyers and purchasers of other items that are typically financed for long periods of time, including new automobiles.

Tech stocks such as Facebook and Alphabet will likely remain somewhat untouched by the turbulence triggered by Brexit in large part due to their massive customer bases and increasing revenue stream from online advertisers. Another relatively new entry in the online relationship category is MeetMe (MEET) which is currently most saturated in the US, but is available in multiple languages making the ‘social discovery’ company poised for global reach. Not only is the company growing revenue and net income considerably, but its success may present a ripe target for acquisition by a prospective buyer that wants to enter the market segment. Traders may want to take special notice of this opportunity, as timing could be right for investing.

Communications companies that have a global reach and leading reputation for quality and reliable service should also fare well even in volatile periods. These would include such companies as Cisco and NetGear.

Another plus – with the increasing value of the US dollar vs. the British pound, a trip to the UK may now be an attractive consideration for travel plans in the near future. This could be beneficial to British economic conditions as well, as nearly 10% of visitors to the UK last year came from the US, with visitors spending more than those from any other nation.

What Does the UK Stock Market Outlook Mean for Day Traders?

Investors may be taking a short-term pause to evaluate the reaction of global and local market segments. It will take a period of months or even years for the full impact of new trade agreements and economic fallout to be felt, including any domino effect that could influence similar movement by other EU countries.

Investors are moving, at least temporarily, toward what are generally more safe havens in the markets such as government and municipal bonds and time-proven commodities such as gold and other precious metals. One of the most historically safe investments is that of US Treasuries, which will likely grow in demand. Traders may take a cautious eye in watching for stocks to bottom out and buy at rates that are extremely low compared to recent months. Selling as stocks drop only cements losses that may be reversed as markets turn around, although no one can predict with any certainty what the timing for such a recovery will be.

Whether your tendency is to wait and see what happens to market trends, or to jump in quickly and take advantage of stocks that have dropped to at least short-term low prices, information is your best tool in making investment decisions.

SureTrader gives clients up-to-date news and facilitates lightning-fast trades to optimize decisions and maximize gains. We have the trading platforms that include a web-based trading environment as well as desktop software with advanced features for the tools that meet every trading need. Android and iOS devices are fully supported for reliable accessibility to your accounts.

Our comprehensive unmatched customer support provides contact with real people to resolve trader problems quickly and efficiently.

Contact SureTrader right away to get started investing online with the best in online brokers.

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

SAS View on UK Stock Market and Activity

Anyone reading a financial page or newspaper is aware of significant activity in UK markets brought about by many influences. This includes not only the impacts of the global economy but especially the state of European Union (EU) countries and consideration on behalf of the UK to break away from the EU – referred to now as Brexit. How is this impacting the British economy, and to what extent?

British citizenship and leaders are on the cusp of what many economists view as a vote that will be critical to the future of the UK’s financial position not only within the EU but also throughout global markets. During its time as part of the EU, Britain has flourished with trade agreements that have boosted economic growth from the slowest in the ‘group of seven’ economic powers (G7) to one of the strongest from the standpoint of growth in GDP. Those weighing in on the ‘leave’ side of the discussion point to economic policy reforms internal to the UK that boosted performance, rather than being part of the EU. Economists on the ‘stay’ side of the decision (who at this point in time represent the majority) feel departing will slow economic growth. Their estimates reveal that the EU has played a significant role in the economic growth of the UK – possibly as much as 10% – through opening up increased access to markets throughout Europe.

Taking all views based on economic history and educated opinions into account, the most widely-held belief is that exiting from the EU would create a negative impact on the UK by closing doors for trade in EU markets while opening few to make up the loss in other countries or markets.

How is the UK Stock Market Reacting?

Brexit is, of course, only one of the factors in day-to-day activity in the UK stock market. With a higher expectation that the UK will remain a part of the EU, UK markets remain on an uptick with the British FTSE 100 rising .4% with the vote looming, and the pan-European STOXX 600 index having realized the same level of gains for several consecutive days of upward trends.

Reuters reported that the UK’s blue chip index closed at 6,204 points early this week for a 3% gain, the best reported for a single day since February. This is believed to be in part due to a positive expectation that the UK will indeed remain in the EU.

Not everything is as rosy, with commodities such as industrial metals trending downward due to an excess in supply from global markets. Copper is an example with a drop of .5%. Energy stocks also declined driven by the global drop in oil prices.

Investors are exercising general caution in purchases pending the final outcome of the Brexit vote. There is also concern that should the UK go through with an exit move, other EU countries could be taking a look at their positions in the EU and consider a similar move, causing a domino effect within the EU as a whole. This could be much more disruptive to the state of the European economy than the UK on its own, possibly triggering global economic volatility.

Currency traders note that the British pound has trended downward in recent months – even over a period of years. Brexit is not expected to impact the pound’s performance significantly, regardless of the outcome of the vote. The pound fell against the US dollar in recent trading sessions due to concerns over the impact of the pending vote, although more recent beliefs that the UK will stay have not reversed that direction. The pound has in fact been the most impacted segment in anticipation of the Brexit vote results.

What Does the UK Stock Market Outlook Mean for Traders?

Even with the concerns and volatility that could be generated by the UK’s decision to remain in the EU, there are opportunities for traders. US stocks actually gained with the news from polls that indicate Britain will remain in the EU. Concerns had previously caused a nosedive in the US Dow industrials while positive expectations reinvigorated trading as the S&P 500 gained ground, spurred by shares in segments such as commodities.

Day traders can take advantage of volatility in UK stock markets regardless of whether the vote to leave the EU is stay or go. Jumping into the right trade at the right time can generate profits simply from the gyrations that can be expected by either decision.

SureTrader gives our clients up-to-date news feeds and services that enable lightning-fast trades to optimize trading activity and maximize gains. With trading platforms that include our free web-based trading environment and SureTrader’s desktop software with powerful advanced features, our clients have the tools that meet every trading need. Android and iOS devices are each supported for maximum accessibility to your accounts and investment choices.

Our award-winning customer support means efficient connection with real people to resolve trader problems quickly and efficiently.

Contact SureTrader right away to get started investing online with the best in online brokers.

 

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

What Stock Trends Are Taking Shape for this Year’s Summer Season?

 

Many stocks or industries have seasonal trends, and summer is certainly no exception to that rule. Historically the stock market slows during the summer season as families vacate their homes for road trips and visits to entertainment destinations. There is even a well-known saying among investors: “Buy in May and go away”.

Summer is Here – What Stock Trends Are Shaping Up?

Although trading seems to slow during the summer months due to vacations and other seasonal activities, those months have also been known to experience at least a respectable rate of growth during the same period.

Many large investors shed higher-risk elements from their portfolios as they prepare to take time off since they will not be as actively monitoring market activity.

What are the Bright Spots of Summer Stock Trends?

Over recent years, some of the winners during summer trading periods include segments in or closely tied to health care, utilities, and energy markets. Those markets that tend to drop are such stocks as material and industrial sectors along with a general lag in consumer discretionary spending. Some of these appear logical for many traders since travel and summer pastimes focus traders and their families away from large purchases as dollars are put to work elsewhere.

Sam Stovall of Standard & Poor’s Equity Research summed it up quite succinctly in stating “a lot of investors are more focused on their tans than their portfolios.”

There are certainly exceptions that tie to where families are spending those dollars: hospitality, entertainment venues, and travel. Whether that means an expensive trip abroad, vacations to popular theme parks, or just getting away from home for a few days, travelers hit the road or take to the air in droves while the weather permits and children are away from school for a few weeks or more. Companies engaged in these markets make a large percentage of their profits during the summer months, much as retailers look to the holidays for their primary revenues.

Other highlights for summer investors are outdoor outfitters such as Cabela’s and “big box” stores such as Lowe’s and Home Depot that supply consumers with grills and accessories, yard care equipment, and outdoor furniture.

Summer Stock Trends and Tools

Timing can be an incredibly valuable time as traders watch for lowering stock prices to time buys just as values will begin to trend up. That may mean waiting for the summer downward trend to begin its reversal and start climbing in the Fall.

If you’re a vacationing trader there are some tools to consider that can keep you in touch with your market segments while you travel:

Portable computers in the form of systems like the Microsoft Surface Pro or high-powered tablets and iPads that combine the power of a computer with the portability of a tablet.

AMPL Smart Bag – don’t worry about missing a trade due to low power when you latch on to this bag equipped with SmartBatteries to keep your tablet, smartphone, or laptop ready whenever you need them.

goTenna – if you have a device but no connectivity you can’t make your trades when the time is right. This simple and portable antenna-like device lets you sync your Android or iOS device via Bluetooth-LE to put you on the air for trading where there is no cell coverage or Wi-Fi available.

With devices like these, you’re able to access your online broker anytime, anywhere. Enjoy the summer season while staying connected to maximize your trading success.

SureTrader gives our clients the services and capabilities needed to optimize their trading activity. Our selection of trading platforms includes a free web-based trading environment supporting both Android and iOS devices. SureTrader’s desktop software has powerful advanced features that rank it as the best trading platform available.

Our superior level of support means contacts with real people to resolve trader problems quickly and to your complete satisfaction. Lightning-fast accurate trade execution is another advantage for SureTrader customers.

Contact SureTrader right away to get started investing online with the best in online brokers.

 

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

News and Impact on Trading and Investing from Recent US Dollar News

There Has Been Plenty of Recent US Dollar News

US stock markets and the US dollar have been in the news for many reasons in recent weeks.

Wall Street tumbled this week amid falling oil prices and declining bond yields that impacted not only US but also global bond markets. As Great Britain considers leaving the European Union (EU) anxious investors consider the impact on global currencies including the US dollar and US bond markets.

Such concerns make traders and even long-term investors seek safer choices in their trades. Interest in US government bonds is rising as bonds in other countries such as Japan and Germany have declined to unprecedented lows. This makes US bonds the bright spot in historically safe government bond market segments. Erik Davidson at Wells Fargo Private Bank indicated that residual concerns remaining from the financial crisis drive investors to vehicles that they perceive as safer havens.

The US dollar itself was up .23% standing out as an exception to a mix of other currencies that have not fared as well in recent months.

US business investment has experienced a slump as companies hesitate to part with capital in the current US economy, even as consumer spending has experienced an upswing and the summer travel and vacation season is anticipating higher participation and profitability than over the past few years. Businesses express a certain level of anxiety over the political climate and the upcoming Presidential election. Some business owners opine that Donald Trump will likely be friendlier to business interests than if Hillary Clinton takes office. Regardless of the political outcome spending remains under close scrutiny by business decision-makers.

US oil production has increased recently with more rigs springing back to life over the past couple of weeks, generating the impact of reduced US-produced crude prices due to rising supplies.

The US Federal Reserve also has hinted that interest rate hikes alluded to earlier in the year will likely be put on hold due to sluggish economic reports including poor employment statistics reported due to the lack of new jobs being created over most recent months.

Reactions to US Dollar News by Traders and Investors

Keeping in close touch via news feeds from regional and global agencies can be leveraged for increased profits for investors and day traders. By including insight to US and global markets the impact on stock values, currencies, and commodities can be evaluated to highlight the best opportunities for gains. Global markets have an increasingly close relationship to US markets and currency values.

SureTrader gives our clients effective news access and monitoring tools to keep abreast of relevant information that impacts strategy and maximizes gains. Our multiple platforms include a free web-based trading platform that supports both Android and iOS devices. Powerful desktop trading software has advanced features that make it simply the best trading platform available.

SureTrader’s unequaled support offering means clients talk to real people to resolve every problem quickly and to your complete satisfaction. Fast reliable trade execution is a significant advantage for SureTrader customers.

Contact SureTrader right away to get started investing online with the best in online brokers.

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

 

Seven Steps to Day Trading Success

How Can a Beginner Ensure Day Trading Success?

First, it’s important for any day trader – especially a beginner – to understand that there are no guarantees when investing. All funds that you allocate to any type of investment are at risk. Your key is to minimize risk while making a profit. Even small gains are obviously much more advantageous to your financial position than losses of any magnitude. With the goal of profitable day trading sessions in mind, there are numerous steps beginning traders need to follow, and even experienced traders need to live by as well.

  • Obtain some education:

There are many web sites, books, seminars, and webinars available that are written and run by knowledgeable and experienced resources. Spend some time learning the terminology of day trading and investing first, then proceed with gaining an understanding of each term that applies to your specific investment strategy.

  • Strategy:

This is also important to your success, especially for new day traders. Are you planning to just hit the market for the “hot” item of the day, or will you develop a strategy such as focusing on a particular market like precious metals, energy stocks, or tech stocks? If you possess particular knowledge of an individual business or commodity it presents an especially relevant market niche to start from. Many leading investors advise traders to participate in markets or products they’re familiar with.

  • Platform:

If your intention is to enter into intense online trading sessions for several hours on a regular basis, you should consider a high-powered desktop platform that provides sophisticated charting capabilities, tracking of individual stocks in real time (watch lists) and automated execution of trades when your price point or exit point is reached. On the flip side are day traders who are on the go constantly and require mobile access to their accounts and trade executions whenever and wherever they may be. Look for an online broker who provides the trading platform and tools that meet your specific needs.

  • Tools:

Once you understand the terminology and have established the platform that will best accommodate your trading needs, invest your time first to understand the tools offered by your online broker in the way of charting and graphing techniques, monitoring of market indexes, and access to news feeds that have the potential to impact financial markets and change your trading direction. An important tool to consider is the level of support to clients offered by your broker.

  • Perseverance:

Even experienced day traders can sometimes become overwhelmed by the sheer volatility of individual stocks and market segments as a whole. No trader will be successful with every trade. Remain persistent and flexible in modifying your strategy as you gain experience.

  • Online Brokers:

Day trading will always require an online broker to execute your trades. Before you select an online broker consider whether or not the broker accommodates your trading needs in platforms, accessibility, tools, support, variety of investment vehicles offered, and fee structures.

  • Experience counts:

Every investor or day trader gains confidence and a better understanding of market movements through time and experience with investing tools. There are classes, investing clubs, and even web sites that allow simulated trading with test accounts to see how you fare with trading before you risk your actual capital.

  • One word of caution:

Avoid investments that offer “guaranteed returns” or a specific rate of profit on your investment. Any experienced investor will tell you that there is no such investment as a “sure thing”.

How Your Online Broker Contributes to Day Trading Success

Your online broker is your link to profitability. By providing the tools, access, and support you need your broker assists you with making profitable trades and avoiding problematic choices.            

SureTrader is an online broker that provides access to multiple platforms to leverage critical information and powerful software. Options include a free web-based trading platform as well as our powerful desktop trading platform loaded with advanced features to enhance your position for successful trading.

Our award-winning support puts you in touch with real people 24×7 to help clients with questions or to resolve problems quickly and efficiently.

Contact SureTrader right away to get started investing online with the best in online brokers.

Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.

Category: Market & Stocks

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