This past week, many of the big-name mega-cap technology companies (companies with market capitalization exceeding $200 billion which represents the total value of all outstanding shares) that have driven the indexes to record heights all year long lost favour with investors. In fact, much of this past week’s declines can be attributed to these same companies. This includes Alphabet (NASD: GOOGL), Amazon.com (NASD: AMZN), Apple (NASD: AAPL), Microsoft (NASD: MSFT) and Nvidia (NASD: NVDA).
Tag: crwd
Weekly Update for the week ending June 14, 2024
Over the last few weeks, I have been writing about common questions people ask when they first start investing. From ‘What is Investing?’ to today’s topic of ‘When should I start investing?’ with a few more questions to come in the next few weeks. While answering these questions, it occurred to me: before people even […]
Weekly Update for the week ending May 31, 2024
This past week, as I reviewed my three portfolios, I was surprised by the number of trades I had made in the past few months – a total of 21 across all portfolios. Unfortunately, all but one were on my TD Direct Investing account, costing me almost $200. While not a significant amount in the grand scheme, it is still $200 less available for investment. ☹️
Weekly Update for the week ending May 10, 2024
Part of my investment philosophy is to let winners run rather than selling early to lock in gains. This approach has been beneficial with stocks like Nvidia (NASD: NVDA) and Shopify (TSE: SHOP). However, I reduced my holdings in each after they came to represent over 40% of Portfolio 1 and Portfolio 3, respectively, to manage increased volatility.
On the flip side, this strategy has sometimes resulted in missed opportunities for greater profits, as was the case with Illumin Holdings (TSE: ILLM). After surging from C$2.00 to C$32.00 per share in less than a year, it plummeted to C$1.64. Although I made a profit, I could have made more had I sold earlier. ☹
While I generally prefer to let winners run and even expand my investments in them, I recognize there are times when it is wise to sell part of a stake, especially in smaller, more volatile companies.
Weekly Update for the week ending May 3, 2024
This past week, the US Federal Open Market Committee (FOMC) convened to set monetary policy, most notably the US benchmark interest rate. These decisions have a profound influence on investors in both Canada and the United States. Generally, lower interest rates can lead to higher stock prices and a calmer market environment, and happier investors 😊. Conversely, higher rates can introduce volatility and encourage a shift towards more conservative investments.
Beyond investor sentiment, the FOMC’s decisions on the US benchmark interest rate can significantly influence the actions of the Bank of Canada (BoC) with regards to Canada’s interest rate. The relationship between these rates is critical because a substantial difference can have several repercussions on the Canadian economy.
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Weekly Update for the week ending February 9, 2024
This past week, with a lull in economic news, corporate earnings captured the spotlight – and they certainly delivered. Fueling investor optimism further were the revised US Consumer Price Index numbers for December, indicating lower inflation than initially reported. This shift has led investors to speculate about the potential for the Federal Reserve to lower […]