The Math Behind Earnings Growth Supporting High Stock Prices
Image Source: Pixabay Pundits are justifying currently high stock prices by pointing to high expectations for strong earnings growth in the future. They imply that investors will continue to pay high prices for those earnings. The underlying math is unlikely to hold up.In its January 3, 2025 article entitled Stock Market and Budget Projections: Do the […]
Elliott Wave Technical Analysis: U.S. Dollar/Japanese Yen – Wednesday, Jan. 29
U.S. Dollar / Japanese Yen (USDJPY) Day ChartUSDJPY Elliott Wave Technical Analysis Function: Bearish Trend Mode: Impulsive Structure: Navy Blue Wave 1 Direction Next Lower Degrees: Navy Blue Wave 1 (Started) Details: Navy Blue Wave 1 has initiated a new downtrend. Wave Cancel Invalidation Level: 158.924 Analysis Overview:This analysis examines the USDJPY currency pair using Elliott Wave Theory on a daily chart, identifying a bearish trend in an impulsive mode. […]
Fed, ECB To Decide On Rates, AI Shares Recover Lost Ground
The Federal Reserve (Fed) and the European Central Bank (ECB) will decide on matters of monetary policy today and tomorrow respectively. While the Fed’s board will likely refrain from cutting interest rates this time, ECB’s policymakers seem to be willing to reduce the central bank’s borrowing costs to boost economic growth.AI shares recovered some of the […]
Is Shopify Stock Price About To Explode Higher Ahead Of Earnings?
Shopify stock has jumped and formed an inverse H&S pattern. The company’s business has continued having double-digit revenue growth. It will publish its quarterly and annual results in February. Shopify (SHOP) stock price continued rising this year and is hovering at its highest level since January 2022. SHOP has jumped by almost 400% from its […]
Meme Coins Do Not Create Wealth: They Destroy It
The latest craze in cryptocurrency is the release of the TRUMP and MELANIA meme coins. Immediately upon issuance, the cryptocurrency coins surged in value, turning worthless 0s and 1s of computer code into tens of billions of dollars.Many in the financial media, alongside crypto devotees, claim these meme coins, and others like Fart Coin, DOGE […]
GBP/JPY Remains Below 193.50 Due To Hawkish Mood Surrounding BoJ’s Policy Outlook
Photo by Colin Watts on Unsplash GBP/JPY inches lower as traders expect the BoJ to deliver more rate hikes in the future. BoJ reiterated its commitment to further rate hikes if the outlook presented at the January meeting unfolds as expected. The Pound Sterling faces challenges due to the potential risk of stagflation in the UK economy. […]
S&P BSE Sensex Index – Elliott Wave Technical Analysis
S&P BSE Sensex (INDIA) Wave Technical AnalysisFunction: Counter TrendMode: ImpulsiveStructure: Gray Wave CPosition: Orange Wave 4Direction Next Higher Degrees: Orange Wave 5Details: Gray Wave B of 4 appears completed, with Gray Wave C of 4 now in play.Analysis Overview:This analysis evaluates the S&P BSE Sensex (India) Index using Elliott Wave Theory on a daily chart, highlighting a […]
A Long-Term Perspective For The Road Ahead: Insights From Our Q4 2024 Economic And Market Review
Image Source: PexelsYou’ve likely heard the saying “when the going gets tough, the tough get going.” A similar principle can apply to investing: “when the going gets tough, stay in the market.”It’s not a stretch to say that the going was pretty tough in the fourth quarter of 2024. Financial markets were volatile, and for good […]
NBH Review: Rising Inflation Risks
Image Source: PexelsThe National Bank of Hungary left its key interest rate unchanged in January, the fourth consecutive month on hold. The Monetary Council stressed rising inflation risks on several occasions. We continue to expect rates to remain on hold for at least most of the second quarter. Interest rates unchanged for four months In our NBH […]
Forecasting Earnings, Artificial Intelligence (AI) Versus Equity Analysts
Photo by Mohamed Nohassi on UnsplashA critical task in stock selection is identifying a firm’s true profitability. Given the potential of AI to deal with large data, an important question is: Can AI outsmart seasoned analysts? Matthew Shaffer and Charles Wang sought to answer this question in their October 2024 paper “Scaling Core Earnings Measurement with Large Language […]
