Shesa's Investment Blog

What Federal Reserve did today was little shocking for the market and for me too. It’s OK to increase the rate, which was a foregone conclusion.  My concern is not about FED raising .25% interest rate.  However, statement made by fed chair was very concerning. I may not be competent to judge his ability but that’s just my personal thoughts. Why do I say this? The reason is, market across the globe are already in deep trouble, China, Japan, Europe is a mess and U.S. market never saw the volatility of current magnitude, what I can recall in last couple of decades. There is no doubt in my mind that economy is strong - jobs, wages, retail sales, consumer confidence and so on.  There are also significant issues surrounding the market, such as, trade war, Europe political mess, low gas price, subdued home market, volatile capital market. The people are spending thinking they have Job, income, stock market is booming and so on. Once market starts falling deeper and deeper,...

November 2018 - INVESTMENT BLOG By Shesa Nayak U.S. Stock Market Update   Since early October stock markets have been on a mess. There is no respite and downturn continue irrespective of great earnings and strong economy. Of course, there have been some black spots in the economy but volatility in the stock market is astronomically high. DOW Jones has lost 2,483 points off its peak. Both DOW and S&P 500 have given up their gains for the year.   NASDAQ is barely on positive side. Many investors could have lost their gains of 2018 and possibly some of 2017. Why is the doom and gloom? There are few concerns: high interest rates, tariffs, the US-China trade war, crashing oil prices, the fading effects of tax cuts and of course missed revenue expectations by major technology companies, particularly by FAANG companies. It’s not only small investors are losing money; Amazon CEO Jeff Bezos has lost over $40 billion since his net worth peaked in September at ...