Norbert’s Wealth Dome

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Walt Disney Company recently released its earnings report for the fourth quarter and full fiscal year 2024. The company showcased strong performance across its various segments, driven by strategic innovations and robust consumer demand.

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In today's episode, we're diving deep into a classic matchup: Coca-Cola vs. PepsiCo. Both companies have seen significant dips this year, but which one is the better buy? Let's break it down.

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Welcome to Wealth Dome! Today, we're analyzing ABBV (AbbVie Inc.), which recently experienced a significant stock drop of over 12%. With such a dip, is ABBV a buy, a hold, or a sell? Let’s dive into the details to see what the technical indicators tell us.

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Welcome to WealthTown! Today, we’re diving into the technical analysis of IBM, examining if it’s currently a buy or sell opportunity. IBM has been a long-standing tech giant, appealing to long-term holders. But today, let’s see if the timing is right for a buy at its current price.

IBM’s Recent Performance

IBM has seen mixed results in recent weeks:

* Past 5 Days: IBM’s stock grew by 4.1%.

* Past Month: However, it’s down by 8.8%.

These fluctuations reflect both the market's current volatility and IBM’s own challenges and opportunities.

Economic Events and Market Influences

The week is packed with key economic data that could impact IBM and the broader market:

* Core Inflation Rate and Yearly Inflation Rate in the U.S.

* Producer Price Index (PPI) on Thursday.

* Retail Sales Data on Friday.

We’ll classify these events as medium risk, as they could introduce some volatility. But now, let’s focus on IBM’s technical indicators.

Key Technical Indicators for IBM

* Relative Strength Index (RSI): Currently at 46, indicating a moderate risk for price decline but not necessarily a sell signal. This RSI level suggests IBM is neither oversold nor overbought.

* MACD (Moving Average Convergence Divergence): The MACD signal is shifting, with a potential buy signal forming. The MACD line sits at -3.4, with a slight delta to the signal line. This setup often indicates that a buy signal could trigger in the short term, placing IBM in a low-risk position for those looking to enter.

* Price-to-Earnings (P/E) Ratio: IBM’s P/E is 32.18, above the average market P/E of around 25, which we’ll classify as medium risk. The company’s P/E suggests it’s trading at a premium compared to the broader market, signaling potential caution for value-focused investors.

* Buybacks: Ongoing buybacks help reduce share supply, potentially supporting IBM’s price. We’ll consider this a low-risk factor in the analysis as buybacks can contribute to stock price stability.

* Market Forecast: The market is forecasting a one-year growth rate of 6.54% for IBM. This figure, though positive, is lower than the market average, especially after accounting for inflation adjustments. It suggests IBM might slightly underperform in the near term, especially if inflation remains high.

Dividend and Ex-Dividend Date

One highlight for IBM investors is the upcoming ex-dividend date, set for tomorrow. This means new buyers would be eligible for the next dividend payout, an attractive factor for income-focused investors.

Final Verdict: Buy, Hold, or Sell?

At its current price, IBM is intriguing, but likely best suited for short-term investors looking for dividend income or those speculating on a minor price increase. For long-term investors, IBM remains a solid hold due to its stability, dividend yield, and steady buyback program.

This analysis is my perspective, so please conduct your own research and assess if IBM aligns with your portfolio goals. Let me know your thoughts on IBM in the comments below!

If you’d like to read more detailed insights, check out the full article on my Substack. Don’t forget to like and subscribe to the channel for more stock analysis content.

Thanks for joining me on WealthTown—catch you next time!

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit norbertbm.substack.com/subscribe

In this week’s analysis, we dive into how recent political events—namely, the U.S. presidential election—have shaken the financial markets and our portfolio. By examining key market movements and providing a breakdown of our portfolio's reaction, I’ll offer insights into the shifts we observed and our strategic response to them. Let's start with a brief overview of the market’s immediate response to election news and then walk through our portfolio moves.

The U.S. Election and Market Volatility

Following the election, the dollar surged as markets reacted to the uncertainty surrounding the transition of power. Initially, we saw a decline across markets, with corrective movements as investors digested the news. From the period of November 4th to the 8th, the markets provided a clear signal: volatility was here to stay for the time being. This rollercoaster week came on the heels of a significant dip on October 31st, followed by a rebound on November 1st. The election itself took place on the 3rd, so as we moved into the week, we anticipated high market sensitivity to any news about the future U.S. leadership.

By mid-week, it became increasingly clear that the market was beginning to price in the likely victor. A substantial jump in the markets on November 6th indicated that investors felt more certain about the result. In response, we recommend a cautious approach for those holding profits post-election, as the upcoming December earnings season could trigger profit-taking.

Key Takeaways on Risk Management

For those following along with our risk assessments over the past months, you’ll know that we anticipated heightened risk during this period. The possibility of a market decline was real; however, with the election outcome now factored in, there's potential for both market stabilization and continued growth. It’s crucial to have exit strategies in place, especially given the historical tendency for markets to experience a brief pullback in early December before rallying later in the month.

Portfolio Performance and Adjustments

Moving to our portfolio, let’s examine how our holdings performed amid these developments and what strategic changes we made.

Bitcoin and Commodities: Bitcoin’s Record Highs Amid Election-Driven Volatility

The recent election drove Bitcoin to all-time highs, as investor sentiment turned bullish. However, with such a rapid increase, it may be wise to consider selling a portion of holdings for those with substantial gains. If you’re a long-term holder with a "buy and hold" philosophy, staying the course is also a valid strategy.

Gold, silver, and other commodities (excluding oil) faced a decline, largely driven by the election’s influence on market confidence. The Federal Reserve’s rate cuts were another factor affecting bond and commodity prices, with rates cut by 25 to 35 basis points. With another rate cut potentially on the horizon in December, we could see renewed activity in Treasury bonds, especially those with long yields. In fact, Treasury bonds currently display promising signals, so we’re optimistic about their near-term potential.

Stock Sales: UnitedHealth, Truist Financial, and Our Take on Overvalued Stocks

This week, we exited several positions that no longer fit our portfolio's objectives:

* UnitedHealth (UNH): Despite being a strong dividend stock, we felt the price-to-earnings ratio had outpaced the broader market, signaling potential overvaluation.

* Truist Financial (TFC): We sold on November 6th during a price peak, following Warren Buffett’s philosophy: when the market retreats, weaker stocks reveal themselves. This proactive approach protected our gains before a significant drop in price.

* GameStop (GME): Initially a profitable trade, GameStop’s erratic movements have led us to exit the position, even at a minor loss. Given the current trend, we expect a continued decline.

* iRobot (IRBT): After holding iRobot through earnings, we finally exited on November 5th. Although the company showed promise during the pandemic, waning growth potential led to our decision to cut this position.

* Neotech Metals: A speculative stock that initially showed promise, Neotech ended up being a losing trade, prompting us to sell and focus on stronger long-term investments.

Strategic Adjustments: A Look at MercadoLibre and FedEx

While selling some positions, we also took advantage of buying opportunities in promising stocks:

* FedEx (FDX): Our FedEx position remains solid, though we sold a few shares to free up funds for upcoming opportunities. With strong end-of-year expectations, FedEx is one to watch as it benefits from e-commerce growth.

* MercadoLibre (MELI): This Latin American e-commerce giant has earned a place in our portfolio. Known as the “Amazon of South America,” MercadoLibre has proven itself as a leader in its region with a significant competitive edge. While recent earnings met revenue expectations, they missed on earnings, creating a buying opportunity for long-term investors.

Final Thoughts

Navigating the post-election market has required a balanced approach between caution and opportunism. Our response was to lock in gains and redirect capital to solidify our long-term positions. With careful portfolio adjustments, we’re well-positioned to leverage upcoming market movements while mitigating risk.

Stay tuned as we continue to monitor the market and refine our strategy. We’ll soon release a guide outlining our “15 Rules for Smart Investing” to help you navigate these complex market conditions.

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Welcome to Wealth Town with your host, Norbert BM! In today's episode, we're covering the top economic news and market updates. Key highlights include: US GDP Growth Rate: Expected to hit 13.5% Germany's Inflation Rate Report Upcoming Reports: China's NBS Manufacturing PMI, Japan's BoJ Interest Rate Decision US Core ECI on Personal Income and Spending We also dive into recent market movements: S&P 500: Closed up by 0.16% Nasdaq: Closed up by 0.98% Dow Jones: Closed down by 0.46% Additionally, we discuss earnings reports from major companies like Eli Lilly, and the performance of Bitcoin and crude oil. Don't forget to like this video, subscribe to the channel, and hit the notification bell to stay updated with our latest posts. Tune in for our weekend portfolio review and risk assessment! Stay safe and have a lovely day! Norbert BM

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Want to know if the stock market will crash next week? Watch this video for a portfolio review, buy/sell recommendations, and predictions on market trends. Will the stock market hold next week, Portfolio review, Buy Sell, predictions and risk assessment 00:00 - Start 00:13 - Stock Market Review 02:57 - This are the stocks that we bought in our portfolio 06:21 - What stocks did we sell from our portfolio 13:28 - Predictions and Risk assessment for the next week in the stock market 📈 Related Videos: Fear in the markets, Big day for unemployment, -5% correction:

Crashing Nvidia Stock & Oil Prices: What Investors Need to Know Now!

📢 Follow Us: Substack: https://open.substack.com/pub/norbertbm/ Blog: https://wealth-dome.com/page-blog-posts/ Twitter: https://x.com/NBMenyhart LinkedIn: https://www.linkedin.com/in/dipl-eng-menyhart-norbert-523687169/e Disclaimer: I am not a financial advisor and in no way am I signaling a sell, buy, or hold opinion on this stock or any other stock mentioned by me. I am just giving my personal opinion as a hobby trader, I have no certifications and I am not a financial analyst or a financial advisor, I also may be wrong about how I feel about the stock. I want you to do plenty more research on this and the stocks you are interested in because the stock market always holds a lot of risk that may pose different risks and overall be different for each investor and trader. Please do not make opinions based on this idea or any idea. Please be careful! this post is only for conversation. The content on this channel is for entertainment purposes only and should not be considered financial, legal, or investment advice. While I share my opinions and insights, I am not a licensed financial advisor. Always do your own research and consult with a professional before making any financial decisions. The creator is not responsible for any actions taken based on the information provided in the videos. #teslastock #nvidia

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Stay updated on the latest stock market news before the bell with this review of the S&P500, Nasdaq, Dow, and Futures reporting earnings on October 25, 2024. 00:00 - Intro 00:09 - Top economic news 00:25 - Stock market review S&P500, Nasdaq, Dow, Futures 01:36 - Witch companies are reporting earnings today 02:19 - Commodities, oil, gold, silver 03:10 - Outro #stockmarket #marketnews

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit norbertbm.substack.com/subscribe

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit norbertbm.substack.com/subscribe