NordenBladet – Despite a robust performance in 2022, energy stocks have been lagging behind the rest of the market in recent weeks. While growth stocks continue to rise, the S&P 500’s Energy Select Sector (XLE) is up only 1%, compared to the benchmark index’s gain of more than 7%.
Last year saw oil and gas stocks soar while technology and consumer discretionary stocks declined, but 2023 has reversed that trend. Even though shares of companies like ExxonMobil (XOM) hit a 52-week high in early February, they have since been downgraded by CFRA Research given their recent run-up.
Exxon Mobil Corporation stock exchange statement for the last year. The screenshot has been taken 17. February 2023, 19:30 Source: Finance.Yahoo.com
“Our change in opinion is based on valuation. Shares are up 42% in the last 12 months,” analyst Stewart Glickman said in a note to investors, “In the near term, we think refining margins could narrow as price caps on Russian refined products work their way into the system in February, and we think oil services cost pressures may intensify.”
The performance of energy stocks is largely tied to the underlying commodity price, which has remained stagnant lately, but there is hope for the industry as oil prices are expected to rise in the coming months due to seasonal demand increases and China’s reopening post-COVID lockdowns.
For now, energy bulls are still favoring cyclical equities over high-tech growth names.
NordenBladet – Investors face continued market instability as stocks take a hit, particularly in the tech sector, amid higher bond yields and a strengthening dollar.
* Tech stocks plunge as investors remain risk-off amid hawkish Fed
* Investor worries grow as bond yields rise and dollar strengthens
The S&P 500 and Dow Jones Industrial Average have each declined around 0.5%, while the technology-focused Nasdaq Composite slumped by more than 1%. The bond market has seen the 10-year US Treasury yield rise to 3.88%, with a strong dollar index trading at $104.32.
Despite an earlier market sell-off on Thursday, there is hope for continued growth with strong employment gains and the economy in growth mode.
Experts predict a quarter-percentage point interest rate hike in March and May, with potential for further hikes if inflation, consumer demand, and job growth remain stable. While market turbulence will continue, investors remain optimistic that the economy will remain robust.
NordenBladet – The future of cryptocurrency is a topic of much debate and speculation. Cryptocurrency, such as Bitcoin and Ethereum, is a digital or virtual currency that uses cryptography for security. It operates independently of a central bank or government.
Advocates of cryptocurrency argue that it has the potential to revolutionize the financial industry by providing a decentralized and more secure means of conducting transactions. They also believe that it has the potential to empower individuals by giving them more control over their own money.
Critics, on the other hand, argue that the lack of regulation and oversight of the cryptocurrency market makes it a breeding ground for fraudulent activity and financial crimes. They also point to the volatility of the market, which can make it a risky investment.
Despite these criticisms, the use of cryptocurrency has been on the rise. A growing number of businesses and individuals are accepting it as a form of payment, and more traditional financial institutions are starting to explore the potential uses of blockchain technology, which is the underlying technology of most cryptocurrencies.
It is difficult to predict exactly what the future holds for cryptocurrency, but it seems likely that it will continue to play a role in the financial industry. However, the future of crypto is also dependant on the developments in the regulatory environment and the overall acceptance of the crypto by the general public and the financial institutions.
6 Reasons Why Cryptocurrency is Good:
Decentralization: Cryptocurrency operates on a decentralized system, which means that there is no central authority controlling it. Transactions are recorded on a public ledger and are verified through a network of computers, making it transparent and secure.
Increased Security: Cryptocurrency transactions are encrypted and secure, making it difficult for hackers to steal funds. This is a major advantage compared to traditional banking systems, which are vulnerable to hacking and fraud.
Borderless Transactions: Cryptocurrency can be used anywhere in the world, regardless of geographical borders. This makes it easy to send and receive payments internationally, without having to worry about currency conversion rates and fees.
Anonymity: Cryptocurrency transactions can be made anonymously, which is a desirable feature for people who value privacy.
Cost-effective: Transactions made using cryptocurrency are usually cheaper compared to traditional banking methods, as there are no fees charged by intermediaries such as banks.
Accessibility: Cryptocurrency is accessible to everyone with an internet connection, making it an inclusive financial system that is not limited by geography or financial status.
Excerpt from CoinMarketCap.com January 8, 2023
6 Reasons Why Cryptocurrency is Bad:
Volatility: Cryptocurrency values are highly volatile, and can fluctuate greatly in a short period of time. This can make it a risky investment, and can also make it difficult to use as a regular currency.
Lack of Regulation: Cryptocurrency is not regulated by any central authority, which can lead to increased risk of fraud and scams.
Complexity: Cryptocurrency can be confusing for the average person, and requires a certain level of technical knowledge to use.
Limited Adoption: Cryptocurrency is still not widely accepted, and there are limited places where it can be used to make purchases. This makes it difficult to use as a regular currency.
Environmental Impact: Cryptocurrency mining requires a lot of energy, and this has a negative impact on the environment.
Lack of Legal Protection: Cryptocurrency transactions are not covered by any legal protections, which means that there is no recourse if funds are stolen or lost.
Cryptocurrency has both advantages and disadvantages. While it offers increased security, anonymity, and accessibility, it also has its drawbacks such as volatility, lack of regulation, and complexity. Whether cryptocurrency will become the money of the future or exist alongside traditional money is still up for debate. It is likely that cryptocurrency will continue to evolve and mature, and that its role in the financial world will become clearer in the years to come. Ultimately, it will be up to the market and consumers to determine the future of cryptocurrency.
It’s important to keep in mind that the crypto market is highly speculative and can be highly volatile, so it’s important to conduct thorough research and consult a financial advisor before investing in any cryptocurrency.
NordenBladet – Rainer Rohtla has been appointed as the new CEO of Coop Eesti Central Union starting February 1st, 2023. Prior to this, he led the Via 3L group, one of the largest logistics and transportation companies in the Baltic region, and previously worked at the courier company DPD Estonia.
Coop Eesti Central Union, the largest grocery chain in Estonia, has been searching for a new CEO since October 2022. Alo Ivask led the company from October 1st, 2019 until recently, and prior to that, he was the head of the Entrepreneurship Development Foundation (EAS).
The choice of Rainer Rohtla as the new CEO was based on his extensive experience in managing both Estonian and international companies and increasing their market share in Estonia and the Baltic region.
According to the Chairman of the Coop Eesti Central Union Council, Väino Sassi, Rohtla brings valuable logistics experience in addition to his management skills.
Coop Eesti is the largest and oldest food and consumer goods chain in Estonia, consisting of 18 local consumer unions, owning 320 stores with a total revenue of 752 million euros in 2021, leading the market with a share of about 25%. Today, over 6000 people work at Coop.
NordenBladet – Estonian startups are facing difficulties in securing funding due to the current economic climate. Companies such as Hagen Bikes and Robus Group, which make steel cargo bikes and training equipment respectively, have had to lay off staff and borrow money. Despite the challenges, the companies are still optimistic about their future prospects and continue to grow. The companies have also seen a reduction in investment interest, but startups in the climate, energy, and infrastructure technology sectors are still attracting investment.
Estonia’s startups are facing difficulties in raising capital due to the current economic downturn. Hagen Bikes, which produces steel cargo bikes, has had to lay off staff and borrow money to continue its development. The company’s CEO, Kaspar Peek, stated that raising money has become increasingly difficult in the past two years and that the future of the financial markets is uncertain. Despite these challenges, the company is still performing well and has secured a bike rental contract with the German city of Kiel, which has expanded. Hagen Bikes sells 95% of its products abroad and is hopeful that the Estonian market will grow in the future.
Another Estonian company, Robus Group, which trades on the Tallinn Stock Exchange’s alternative list, has also experienced difficulties in securing funding. Despite a successful €77,000 share sale last spring, the market has cooled down, making it harder for the company to find funding. However, the company is still growing and has seen an increase in the number of strategic partnerships. The board member of Robus Group, Mikk-Alvar Olle, stated that investors are being more cautious with their money, but companies that see opportunities for cooperation are still willing to make investments.
In conclusion, while Estonian startups are facing challenges in securing funding due to the current economic downturn, they are still optimistic about their future prospects and continue to grow. Climate, energy, and infrastructure technology startups are still attracting investment, while other companies are seeking alternative funding options and forming strategic partnerships. Despite the challenges, Estonian startups are determined to overcome the obstacles and continue their growth and development.
Source: Aktuaalne Kaamera, Friday, 27.01.2023
Featured image: Kaspar Peek (YouTube)
NordenBladet – According to Bank of Estonia Deputy Governor Ülo Kaasik, inflation in Estonia has not risen notably since last August and is expected to slow down to single-digit levels in the second half of 2023. The decrease in inflation is due to the drop in energy prices and the price of oil and natural gas, while food prices will continue to rise. The real estate market has also sensibly settled.
The European Central Bank (ECB) has raised interest rates to slow inflation in the euro area, and Kaasik noted that the monetary policy had reacted firmly. He said that “there are no good ways to tackle inflation that has gotten too high, so we have to choose between bad and worse, and inflation remaining high for too long would be the most harmful outcome for people and for the economy as a whole.”
“The Bank of Estonia expects inflation to come down and approach a more normal level in the second half of this year,” Bank of Estonia Deputy Governor Ülo Kaasik said at the recent annual conference of the Estonian Economic Association (EMS).
The deputy governor also acknowledged that difficult times will continue for the Estonian economy, but the outlook is better for the second half of the year, with government spending supporting demand in the domestic market and growing company profits. The ongoing war in Ukraine is expected to impact Estonia’s economy more strongly this year, but Kaasik noted that the number of people employed in the Estonian economy is at a near record high. He stressed that the significant budget deficit is a feature of Estonia’s state finances and additional spending requires additional revenues.
NordenBladet – No matter what field you work in, you need to stay on top of your work to be successful. Day trading requires a high level of discipline and attention, as well as a thorough understanding of the markets and the financial instruments being traded. What could be the top 25 tips for a day trader?
1. Develop a trading plan and stick to it.
2. Keep emotions out of trading decisions.
3. Set clear and realistic profit and loss targets.
4. Diversify your portfolio to reduce risk.
5. Stay informed about market news and trends.
6. Use stop-loss orders to limit potential losses.
7. Use technical analysis to identify trends and patterns.
8. Use fundamental analysis to evaluate the underlying value of a stock.
9. Keep a trading journal to track progress and learn from mistakes.
10. Use risk management techniques such as position sizing and hedging.
11. Stay patient and disciplined.
12. Avoid over-trading.
13. Learn to read and interpret financial statements.
14. Understand the impact of economic indicators on the market.
15. Learn to read and interpret charts and technical indicators.
16. Focus on a specific market or sector to become an expert.
17. Stay up to date on regulatory changes that may affect your trades.
18. Do not chase after hot stocks or market trends.
19. Learn to take profits and cut losses.
20. Only trade with money you can afford to lose.
21. Have a clear exit strategy before entering a trade.
22. Don’t rely on insider information or tips.
23. Don’t over leverage your account.
24. Have a well-rounded financial education
25. Continuously learn and improve your trading strategy.
Who is a day trader?
A day trader is an individual who buys and sells financial instruments, such as stocks, options, currencies, or commodities, within the same trading day. Day traders typically hold their positions for a very short period of time, often just a few minutes or hours, and they aim to make small but frequent profits by taking advantage of short-term price movements. Day traders usually use technical analysis and charting to find trades and make decisions, and they tend to have a high tolerance for risk. Day traders usually work independently, rather than being employed by a financial institution, and they use their own capital to trade.
NordenBladet – The stock market never sleeps and every event is unique and new. However, it is said that situations tend to repeat themselves and those who do not remember the past live without a future. Russia’s attack on Ukraine is currently the biggest market changer. But what other events have brought big ups and downs to the stock market? We highlight ten interesting stories about the stock market that are definitely worth mentioning.
What are ten most interesting stories or situations about the stock market?
The GameStop short squeeze: In January 2021, a group of retail investors organized on the subreddit r/wallstreetbets coordinated to buy shares of GameStop, a struggling video game retailer, in order to cause a short squeeze. The stock price of GameStop skyrocketed, causing significant losses for hedge funds that had bet against the company. The situation drew attention to the power of retail investors and the potential for social media to influence the stock market.
The 2008 Financial Crisis: The 2008 financial crisis was caused by a combination of factors, including a housing market bubble, lax regulation, and risky lending practices. The crisis led to the failure of several large financial institutions and a global recession. The government intervened with a series of measures, such as the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act of 2009, in order to stabilize the economy.
The Dot-com Bubble: The dot-com bubble was a period of speculation and hype surrounding internet-based companies in the late 1990s. Many investors poured money into these companies, driving up their stock prices to unsustainable levels. When the bubble burst in 2000, many of these companies went bankrupt and investors lost significant amounts of money. The dot-com bubble is often cited as an example of irrational exuberance in the stock market.
Black Monday: On October 19, 1987, the stock market experienced one of the largest single-day crashes in history, with the Dow Jones Industrial Average dropping by 22.6%. The cause of the crash is still debated, but some factors that contributed to it include high levels of debt, trade imbalances, and a lack of investor confidence.
The Tesla stock rally: In 2020, the stock price of electric car manufacturer Tesla increased by over 600%, making it the most valuable car company in the world. The rally was driven by strong demand for electric vehicles, as well as by CEO Elon Musk’s tweets and public statements.
The China-US Trade War: The ongoing trade tensions between the United States and China has had a significant impact on the stock market. The tariffs and other trade measures imposed by both countries have led to uncertainty and volatility in various sectors of the market.
The 2020 COVID-19 market crash: The outbreak of the COVID-19 pandemic in 2020 led to a sharp decline in the stock market, as investors worried about the economic impact of the virus. The S&P 500 index fell by 34% between February 19 and March 23, 2020, marking one of the fastest bear markets in history.
The 1987 insider trading scandal: In the late 1980s, a number of Wall Street firms and traders were found to have engaged in insider trading, using non-public information to make profitable trades. The scandal led to the conviction of several high-profile individuals, including Ivan Boesky and Michael Milken, and led to increased regulation of the securities industry.
The Enron Scandal: In 2001, energy company Enron was found to have engaged in accounting fraud, overstating its profits and hiding its debts. The scandal led to the bankruptcy of the company and the loss of thousands of jobs. It also led to increased regulations and oversight of publicly traded companies.
The 2008-09 Financial Crisis in Greece: The global financial crisis of 2008 had a severe impact on Greece’s economy, which was already struggling with high levels of debt. The crisis led to a loss of investor confidence in Greek bonds, and to a sovereign debt crisis. The Greek government was forced to seek financial assistance from the European Union and the International Monetary Fund.
