Stock Analysis (December 2020)

Analysis looking at some market trends over the past year.

High performances by Nasdaq are a recent phenomenon and one has to consider this. Whilst we are moving towards a more technological age, can the Nasdaq sustain its growth and justify its price?

Gold has often been a strong performer and has once again during this latest crisis.

Nikkei and FTSE 100 have experienced bad performances over the past 20 years. Many commentators suggest they are cheap and are worth looking at.

When taking Bitcoin into consideration, all other stock indices seem irrelevant. Is this just another crazy bubble, or will its price sustain? History suggests it is a bubble, although one must not dismiss the argument Bitcoin might just become a digital store of wealth and see its price continue to increase.

There are other cryptocurrencies out there which are even more volatile than bitcoin, with huge returns.

Tesla has seen astounding growth over the past year. Its value is now worth more than all other automobile companies combined. The chances are high that the price will crumble, although one must not rule out the potential of Tesla and Elon Musk.

Most stocks have seen prices rise as a result of fiscal stimulus, low interest rates, a rise of retail investors etc. Whilst some prices are justified with strong fundamentals, at this stage, nearly all stocks are rising and everyone is winning. Once companies and governments need to pay back their debts and once people realise how hard the "real" economy has been hit, only then will we truly understand what position the stock market finds itself in.

For the Analysis click here or downloadable link below.

Stock Analysis 201220
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