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Inflationary winds from around the world spell a sea change for Bitcoin

If inflation is taking a deeper hold on the global economy, could Bitcoin become less a speculative tool and more a safe haven?
Is the global economy in uncharted territory now vis-a-vis Bitcoin (BTC) and inflation? During most of…

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If inflation is taking a deeper hold on the global economy, could Bitcoin become less a speculative tool and more a safe haven?

Is the global economy in uncharted territory now vis-a-vis Bitcoin (BTC) and inflation? During most of the cryptocurrency’s brief life, the economic environment has been generally pro-growth with stable prices but recently, there are fresh warnings of an inflationary storm. 

If so, what does it mean for Bitcoin, long promoted by partisans as an inflation hedge though not really tested in this way since its 2009 founding? That is, will millions of individuals and institutions flock to BTC as a safe haven — an alternative to gold or the United States dollar?

Recent reports, like the 6.2% October rise in the consumer price index (CPI) of the United States — a 30-year record — were sobering, though this recent bulge in a single national economy might be more related to ongoing supply-chain snarls and pent-up post-pandemic consumer demand than any secular change in global markets.

“Yes, it [i.e., inflation] is potentially a problem,” Mauro Guillén, dean at the University of Cambridge's Judge Business School, told Cointelegraph. But, much of inflation’s danger is tied to consumers’ expectations of the future. If they believe that continued rising prices are an enduring fact of life, then they will purchase items sooner rather than later, anticipating higher prices.

“The fact that U.S. consumers are postponing buying big-ticket items due to inflation suggests that they believe inflation will come down,” said Guillén, adding: “I am guardedly optimistic that this is temporary.”

Others aren’t so upbeat. “It is clear now that inflation is less transitory than was initially hoped,” Itay Goldstein, a professor of finance at the Wharton School, told Cointelegraph. The world is struggling with supply-demand imbalances following the pandemic, and COVID-19-related monetary and fiscal stimulus also factor into recent inflation reports, but “it seems that inflation has taken a deeper hold and will take longer to subside,” according to him.

A global phenomenon?

“Inflation has accelerated, and not just in the U.S.,” Marc Chandler, managing director at Bannockburn Global Forex, told Cointelegraph. Last week “we also learned that China’s CPI jumped from 0.7% year-over-year to 1.5%.” Will it last? It’s not clear at this point. “What we do know is that price pressures have not peaked and may not peak until well into next year.”

But, if global inflation were to worsen dramatically? Then “I would expect [crypto] adoption by both buyers and sellers to really explode,” Leonard Kostovetsky, assistant professor at Boston College's Carroll School of Management, told Cointelegraph while adding that this isn’t the likeliest outcome:

“I don’t see this happening any time in the foreseeable future. My guess is that inflation will get under control fairly soon — next four years, perhaps — as pressure grows on policymakers to rein it in.”

Bitcoin received a price boost recently from the debut of the first-ever U.S. Bitcoin futures ETF, but it “seems to now be fueled by the sustained inflation that we are witnessing across all the world’s major economies,” Sui Chung, CEO of CF Benchmarks, a cryptocurrency benchmarks administrator, told Bloomberg.

Bitcoin, of course, has a fixed supply cap of 21 million BTC. The USD, by comparison, is elastic and the growth in the United States M1 Money Stock has ballooned more than five-fold over the past five years: From $1.378 trillion in September 2016 to $7.245 trillion in September 2021 (426%), according to Federal Reserve Bank of St. Louis data.

“It is true that part of the attraction of cryptocurrencies like Bitcoin originates from the fear of inflation in fiat currencies,” said Goldstein. “I suspect that inflationary pressure will thus help Bitcoin and other cryptocurrency’s prices.”

But, BTC’s fixed cap may not make such a difference, others contend. “The price of Bitcoin is driven by demand,” said Guillén. If people believe that it’s a good store of value, then they will purchase BTC — which seems to be the case now, he allowed. “But, I wonder what will happen when interest rates go up and people realize that a Treasury bill will pay a nice interest, and it is so safe.”

“I think that old saw about limited supply needs to be unpacked,” said Chandler. “One can talk about the money link now after the 40% rally in October, but what happened to the money rule in Q2 when BTC fell from $58,900 to $34,500.”

Bitcoin’s limited supply may not even give it an edge over other cryptocurrencies. Kostovetsky doubted that Bitcoin’s capped circulation gave it any big advantage over Ether (ETH) as a safe haven, for instance. “The key advantage of crypto as an inflation hedge would be that there are supply rules that can not be manipulated by humans.” Savers wouldn’t have to worry about some “artificial [i.e., politically motivated] increase in supply that would make their savings worth less,” he said.

Greater impact in the developing world?

Much of the recent inflation discussion focused on the U.S., but China, too, appears to be feeling some effects. That nation’s producer price index soared 13.5% in October (year-on-year), after a 10.7% increase in September. This raises other questions: Will global inflation hit the developing world harder than the developed world, and if so will poorer countries be more likely to adopt Bitcoin as an inflation hedge?

“I do see lower-income people and countries suffering from the impact of inflation,” said Chandler, especially those with weak banking systems and numbers of unbanked households. Before they can take advantage of Bitcoin or other cryptocurrencies, however, they arguably need to possess, at a minimum, cell phones and a certain level of financial literacy.

“Bitcoin is proving to be a viable alternative to other more classic inflation hedges like gold,” Dan Gunsberg, CEO at HXRO Network, told Cointelegraph, adding that “poorer countries will continue to adopt Bitcoin as a hedge against inflation.” That said, while investors may flock to Bitcoin as a safe haven, it is still widely viewed as a risk asset and tends to correlate with other speculative assets like equities, he added. Guillén was less alarmed on the inflation front:

“So far, emerging markets and developing countries are not experiencing inflation rates higher than the United States. The dollar will remain strong. I don’t think we will see high global inflation.”

Entering unmapped waters?

All in all, “We are in uncharted territory,” said Kostovetsky. No one really knows if inflation will be severe and widespread or mild and localized, while Gunsberg added that “We have been in uncharted territory for inflation for longer than what's been publicly communicated, which has been reflected in the price of Bitcoin,” as well as other financial assets over the past 12-18 months.

Related: ​​Are institutional investors the key silent partners of crypto?

Still, if inflation does turn sharply higher, while cryptocurrencies manage to become less volatile — two big ifs, admittedly — then “there is potential for people to hold their savings in crypto,” Kostovetsky told Cointelegraph, which would mark a big sea change indeed.

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Economics

Top Trending Stocks to Buy Today

A few companies have started the season off strong. Let’s examine the top trending stocks investors are excited about.
The post Top Trending Stocks to Buy Today appeared first on Investment U.

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There is a ton of uncertainty in the investing world right now. First, new COVID-19 strains have turned into an ever-present threat to the entire economy. Second, many companies are still struggling with supply chain issues. Finally, analysts expect interest rates to rise at any minute. However, despite all of this turmoil, a few companies have started the season off strong. This is much-needed good news for investors. Let’s examine a few of these top trending stocks and see why investors are excited about them.

NOTE: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions.

What Creates Top Trending Stocks?

When you hear the word “trending”, most people think of a viral social media post. These are posts that everyone is talking about and sharing with each other. Honestly, trending stocks are not that different.

There are tons of factors that could lead to a stock starting to trend. Stocks can also trend for both good and bad reasons. For example, a stock might start trending in a good way because it announced a brand new service (Walt Disney Company and Disney Plus). A stock could also start trending in a bad way because of a CEO scandal (Activision and Bobby Kotick). A stock could even start trending for reasons that have nothing to do with the company (i.e. The GameStop Short Squeeze).

The most important thing is to figure out why a stock is trending, whether the news is good or bad, and how to react to it.

For this article, I’ve focused on stocks that recently crushed their Q4 2021 earnings reports. These stocks are all trending because they are performing better than investors expected them to. Let’s take a look.

No. 4 Levi Strauss & Co. (NYSE: LEVI)

Levi’s was founded in 1853. When things are looking bleak, it’s a good idea to invest in companies that have been around since 1853. They have a very proven ability to overcome tough times.

Apparently, even after 169 years, Levi’s are still in. In Q4 2021, Levi’s posted multi-decade records for revenue and profitability. Chip Bergh, President & CEO, attributed this success to a few factors. First, he praised Levi’s strong brand equity. This allows it to maintain pricing control and refrain from discounting too heavily. He also mentioned that Levi’s is expanding its direct-to-consumer business. This DTC division has much higher margins than Levi’s traditional business. It has helped to increase Levi’s profitability.

For Q4 2021, Levi’s reported revenue of $1.7 billion. This was up 22% from 2020 and 7% from 2019. Levi’s also beat both its earnings per share (EPS) expectations (2.43%) and revenue expectations (0.32%).

In more good news, Levi’s set super high growth expectations for 2022. It forecasted growth of 11-13% for next year. Chip even went so far as to say, “As good as this past year has been, I’m confident the future will be even better.”

In even more good news, Levi’s increased its dividend. This is usually the ultimate sign of security for investors. It shows that the business has so much money that it can afford to pay some back to investors. In total, Levi’s paid out $104.4 million in dividends during 2021.

No. 3 Tesla (Nasdaq: TSLA)

Tesla is rarely not one of the top trending stocks. Usually, Tesla only trends because of Elon Musk and his antics. This time around, however, Tesla is trending because of very substantial news. Namely, it crushed its earnings report.

Of all industries, electric vehicles were one of the hardest hit by supply chain issues. There are so many pieces (literally) that go into building a car. These pieces are sourced from all over the globe. This leads to a massive supply chain. Additionally, the average EV uses 2,000 processing chips. This means that the EV industry also had to battle the ongoing global chip shortage. A little surprisingly, Tesla was able to navigate these issues with no problem.

In Q4 2021, Tesla produced 305,000 vehicles. It also delivered 308,000 vehicles in Q4 and 936,000 for the year. This resulted in $17.72 billion in Q4 revenue. This was enough to beat both its revenue expectations (6.49%) and EPS expectations (6.88%). In total, Tesla reported a yearly gross profit of $4.8 billion. This was a 135% year-over-year (YOY) increase.

Interestingly, Elon Musk spent a good portion of the earnings call not discussing electric cars. Instead, his focus on was a new humanoid robot called Tesla Bot. Musk described Tesla Bot as, “the most important product that Tesla is developing this year.” He sees it as a potential answer to the current labor shortage.

No. 2 ServiceNow (NYSE: NOW)

ServiceNow is a cloud computing company. It focuses on managing workflows for IT, employees, creators, and customers. Essentially, ServiceNow creates digital experiences to make life easier for your company. Out of all of the top trending stocks, ServiceNow is the most relieving. Let me explain…

In recent months, the technology sector has been beaten down. Badly. It’s been the toughest stretch for tech stocks since the 2008 Financial  Crisis. Many once-popular names like Peloton, Roku, and Fiverr are down 70% or more from their all-time high. This is the case for most Nasdaq. This is why ServiceNow’s earnings report was so critical. ServiceNow sells critical software for businesses. It also works with 80% of the companies in the Fortune 500. If ServiceNow’s business was slowing down, it could be a very bad sign for the economy overall. Luckily, that wasn’t the case.

In Q4 2021, ServiceNow reported revenue of $1.5 billion. This was a 29% increase from 2020. It was also enough to beat both its revenue expectations (2.1%) and EPS expectations (0.59%). The management team at ServiceNow also expects this growth to continue into 2022. They’ve forecasted revenue growth of 26% for 2022.

This earnings beat came at the perfect time. ServiceNow is one of just a few tech stocks that has notched any green days at all lately.

Top Trending Stocks No. 1 Intel (Nasdaq: INTC)

Intel falls into a very similar category as ServiceNow. It is one of the world’s largest companies and sells a wide variety of different business solutions. Due to this, a slowdown in Intel’s business can be viewed as a bad sign for the overall economy. Luckily, Intel also just recently beat earnings. It also helps us round out this list of top trending stocks.

Intel reported Q4 revenue of $19.45 billion. This was enough to beat both revenue expectations (6.4%) and EPS expectations (19.75%). Notably, Intel trades at a price-to-earnings ratio of under 10 right now. This means that it is valued incredibly cheaply for the amount of money it makes. Most companies of Intel’s size trade at P/E ratios of closer to 20 or 30.

One reason why Intel is trading so cheaply might be due to investor uncertainty. Intel recently got a new CEO (Pat Gelsinger) in February 2021. He is currently investing heavily to help Intel increase its production capacity. The company plans to present more detailed plans on February 17, 2022. To read more on Intel, check out my Intel stock forecast.

I hope that you’ve found this article valuable in learning a few of the top trending stocks to buy. Please base all investment decisions on your own due diligence.

The post Top Trending Stocks to Buy Today appeared first on Investment U.

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Spread & Containment

Best Penny Stocks to Buy Next Month? Check These 3 Out

Can these penny stocks push up next month?
The post Best Penny Stocks to Buy Next Month? Check These 3 Out appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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3 Penny Stocks to Add to Your Watchlist in February 2022 

With February only a few days away, trading penny stocks remains extremely popular. Now, to make money with penny stocks in 2022, investors need to have a thorough understanding of what is going on in the stock market. Right now, the most pressing factors include Covid, inflation, the Fed monetary policy, and certain geopolitical tensions. And because penny stocks are so speculative, these factors all have a major and material effect on how they trade. 

[Read More] Why These 3 Penny Stocks Are Exploding Today

So, when you’re making a penny stocks trading strategy, having all of these in mind will help immensely. And, your strategy should also be able to adapt to the ever changing conditions of the stock market. As we all know, trading penny stocks in 2022 is not easy. And in the past week or so, the market has been in a major downtrend. But, with a lot to look forward to regarding the future, investors are excited about the next few months. With all of that in mind, let’s take a look at three penny stocks to add to your watchlist in February 2022. 

3 Penny Stocks to Watch in February 2022 

  1. Gingko Bioworks Holdings Inc. (NYSE: DNA
  2. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP
  3. Root Inc. (NASDAQ: ROOT

Gingko Bioworks Holdings Inc. (NYSE: DNA) 

Today, shares of DNA stock managed to climb by almost 7% at midday. While many large gains like this occur without news, there are a few reasons why DNA stock is climbing right now. Today, Bank of America Securities announced coverage of Gingko Bioworks, initiating a Buy rating and an $8 price target.

While price targets are simply that, they are still crucial for investors to consider. This seems to be the main reason that DNA stock is climbing right now. However, the company did make an exciting announcement a week or so ago. On January 19th, Gingko announced the acquisition of Project Beacon Covid-19 LLC. This is a Boston-based social organization that is working on increasing the availability of Covid testing in Massachusetts. 

“As we embark on a new wave of the pandemic and grapple with the spread of the Omicron variant, large-scale testing will be critical to help keep kids in schools and mitigate the spread of COVID-19. ntegrating Project Beacon’s capabilities with our Concentric by Ginkgo offering will enable us to further empower communities in Massachusetts and beyond with the tools they need to make important public health decisions.”

The Chief Commercial Officer of Gingko, Matt McKnight,

This is very exciting news, and any company involved in treating, diagnosing, or curing Covid-19, has come into the public eye in the past few months. So, with that in mind, will DNA stock make your list of penny stocks to watch?

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) 

Today, shares of SHIP stock managed to climb by almost 12% at midday. It’s tough to say why SHIP stock is moving so heavily right now, but, it did make an exciting announcement on January 24th. On Monday, the company stated that it expects its Q4 TCE (time charter equivalent) to exceed $36,000 per ship per day. This is above the previous guidance of $35,200 per ship per day. 

“As a result of our pro-active hedging strategy in 2H21, we estimate that we will overperform the current spot market rate by approximately 50% in the first quarter. Moreover, our robust EBITDA generating capacity in multiple freight environments attests to our firm belief that our shares are currently significantly undervalued.” 

The CEO and Chairman of Seanergy, Stamatis Tsantanis

This is great news and could be the reason that SHIP stock is moving right now. In the past five days, shares have climbed by around 16%, which is no small feat. Considering all of this, will SHIP stock be on your penny stocks watchlist next month?

Penny_Stocks_to_Watch_Seanergy

Root Inc. (NASDAQ: ROOT) 

Another sizable gainer of the day is ROOT stock, which shot up by over 15%. Before we get into why, it’s important to understand what Root Inc. does. The company is a provider of insurance, revolutionizing the industry through data science and technology.

[Read More] 5 Top Penny Stocks To Buy Under $5 Right Now

It works to provide customers with a personalized and fair experience in modern insurance. The big news for the company came today when it announced a new term loan facility with BlackRock Financial Management Inc. The deal, with $300 million, will provide the company with ample credit to move forward with certain operations. 

“We are pleased with the successful execution of this new term facility. It accomplished several important objectives including extending our debt maturity and further enhancing our liquidity position with a partner focused on the long-term success of Root.

We are executing on a disciplined strategy to create enduring value through strong underwriting results, the development of our embedded product, and prudent capital management.”

The CEO and Co-Founder of Root, Alex Timm

Specifically, this deal with carry an interest rate of around 9% and includes an issuance of warrants from Root to Blackrock equal to 2% of issued and outstanding shares. This includes an exercise price of $9 per share. This is exciting news for the company and should help to stimulate growth for it in the short and long term. Considering that, will ROOT be on your buy list in February or not?

Penny_Stocks_to_Watch_Root

Which Penny Stocks Are You Watching Right Now?

If you’re looking for the best penny stocks to buy, there are hundreds to choose from. While it can be complicated given the sheer number of penny stocks out there, with research on hand, it is much easier than previously imagined. 

[Read More] Investing in Top Penny Stocks: Why, When, and How?

Now, to find the best penny stocks to buy, investors need to know exactly what is going on in the stock market and how to take advantage. This involves looking at the news, understanding how it may affect different industries and considering the future. With all of that in mind, which penny stocks are you watching right now?


If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!


The post Best Penny Stocks to Buy Next Month? Check These 3 Out appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Stocks

Why These 3 Penny Stocks Are Exploding Today

Check these three penny stocks out for your watchlist today
The post Why These 3 Penny Stocks Are Exploding Today appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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3 Penny Stocks That Are Climbing Right Now 

In the past few days, we’ve seen both penny stocks and blue chips remain incredibly volatile. While this can incite fear for some, for others, it presents an opportunity to make money with penny stocks. Now, to understand how to do that, investors need to consider everything that is going on in the stock market and how to take advantage. 

[Read More] 5 Top Penny Stocks To Buy Under $5 Right Now

For example, the Omicron variant has continued to cause major bullishness in certain areas of the biotech sector. This is one example, but as you can see, there is always a clear cause and effect. So, if we consider this, we can begin to craft our trading strategy to match the current state of the stock market. And in 2022, investors should also be thoroughly conscious of the major volatility we’re witnessing right now and could continue to witness into the near future. 

While it is tough to say what the next few weeks will look like for either penny stocks or blue chips, it is likely that more factors will come into play. So, always have a trading strategy on hand, and use it to your advantage. With that in mind, let’s take a look at three penny stocks to add to your watchlist in February. 

3 Penny Stocks to Add to Your Watchlist in February 

  1. Indonesia Energy Corp. Ltd. (NYSE: INDO
  2. TAL Education Group (NYSE: TAL
  3. TDH Holdings Inc. (NASDAQ: PETZ

Indonesia Energy Corp. (NYSE: INDO) 

While INDO stock is technically no longer a penny stock at over $6.45 per share, it was only a short while ago. In the past five days, shares of INDO stock have shot up by over 89%, which is no small feat whatsoever. And, in the past month, shares have climbed by almost 120%.

The majority of this momentum has occurred since the beginning of the year. For that reason, let’s take a look at why shares of INDO may be moving. Earlier in the week, the company announced an update on its 2022 drilling plans. It stated that it should commence drilling at two new wells at its 63,000 acre Kruh Block within the next month. 

“We are excited that our recent financing enables us to commence drilling next month and to aggressively move our company towards a potential cash flow positive position, setting the stage for further drilling and growth for our company in 2022 and beyond. We believe Kruh Block is a world-class asset that should significantly grow our cash flow as we drill additional wells and seek to maximize returns on our investments and grow shareholder value.” 

The President of IEC, Mr. Frank Ingriselli

This is all exciting news and shows that INDO stock could continue to grow. With that in mind, will it be on your penny stocks watchlist?

TAL Education Group (NYSE: TAL) 

Another decent gainer of the day so far is TAL stock. By midday, shares of TAL had jumped by around 5%. While it’s tough to say with certainty why TAL stock is growing right now, we do know that shares have dropped significantly in the past few days. For that reason, the gain today may simply be a rebound following its recent bearish moves. To understand TAL Education, we have to take a look at the overall industry. 

[Read More] Investing in Top Penny Stocks: Why, When, and How?

Right now, the Chinese education industry is struggling to move forward as the government recently imparted major restrictions on how these companies can function. As a result, most companies similar to TAL, have seen substantial and material drops in value in the past six months. 

While some have chosen to fire tens of thousands of workers and others have decided to move into cryptocurrency, TAL Education has not made many announcements recently. And because of this, it’s tough to tell if TAL stock is worth buying or not. But, with its high volatility, there is plenty of potential for TAL to move in either direction. Considering that, will TAL be on your list of penny stocks to watch or not?

Penny_Stocks_to_Watch_TAL

TDH Holdings Inc. (NASDAQ: PETZ) 

With sizable volume on January 28th, shares of PETZ stock managed to push up by over 3.3%. While no news came out for PETZ stock today, we can look at what the company does and what its most recent announcements are. 

On December 10th, the company reported its first half 2021 financial report. In the report, it posted a decrease in revenue of over 50% to $0.13 million in the first half of 2020. The company states that the reason behind this drop is Covid and its effects on supply chains, transport, and sales activities. If you’re not familiar, TDH Holdings is a provider, developer, and manufacturer of pet food products. It offers these under multiple brands, and sells them throughout China, Europe, and other parts of Asia. 

With the incidence of pet adoption increasing substantially during the pandemic, we could begin to see demand for these products rise. But, investors should make sure to look at PETZ next financial results to see what to look forward to. With that considered, will PETZ be on your list of penny stocks to buy next month?

Penny_Stocks_to_Watch_TDH

Can Penny Stocks Continue to Make Gains Next Month?

If you’re looking for the best penny stocks to buy right now, there are plenty of options to choose from. While it can be difficult given the sheer number of penny stocks out there, research will help you to deduce the winners from the losers. If we consider that there is also a myriad of factors impacting the stock market right now, we begin to see why there is so much movement with penny stocks. 

[Read More] Trading Penny Stocks? Top Stock Market News for January 28th, 2022

The best way to make money with penny stocks is to have a thorough and well-thought-out trading strategy. This will help you to take advantage of what is going on right now and what could go on in the future. So, with all of that in mind, do you think that penny stocks can continue to make gains next month?


If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!


The post Why These 3 Penny Stocks Are Exploding Today appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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