What’s The Panicky Stock Market’s Next Move?
It’s been a crazy week for the markets, and it seems like everyone is weighing in as to why. Global economic apprehension reared its ugly head as stocks plummeted across the board. But is there a silver lining to all of this? Certainly, instability in Europe, the Ebola epidemic, and low US figures in retail sales have contributed to the panic, but who can be sure what will happen next?
On Monday, the SP500 cut through its 1,900 to 1,905 support level like a hot knife through butter. The SP500′s sell-off came to a halt (for now) at 1,820.66, which is less than six points above the 1,815 support level that I’ve been discussing. Trading volume surged to its highest level since late-2011, which is indicative of liquidation selling.
After such a sharp move, the SP500 may tread water for a time in the area between the 1,815 support level and the 1,900 to 1,905 resistance level before it makes another move in either direction. If the liquidation selling continues, however, a solid break below the 1,815 support level would put the 1,740 level (the February low) into play as the next likely price target.
Alibaba Finance Arm Follows Jack Ma in Overseas Expansion
The words “Alibaba”, and “IPO” are now almost synonymous with each other. Though the buzz may have cooled off a bit, Alibaba set the gold standard for debuting IPOs earlier this year. And now, they have their sites set on financing, specifically targeting the US and Russian markets. Behind their charismatic leader Jack Ma, Alibaba is looking to do with financial services what they did with their IPO. Will it work?
Zhejiang Ant Small & Micro Financial Services Group Co. is reorganizing itself into six business units, including the Paypal-like Alipay, as it aims to process the digital sales of more small businesses around the world, company officials said at a conference in Beijing yesterday. The units are focused on areas where they already have a presence, such as Brazil and Spain, as well as rural China, where Alipay hopes to reach 100 million users in as soon as two years.
The expansion follows Alibaba Group Holding Ltd.’s record $25 billion initial public offering last month, which made the Hangzhou-based e-commerce company more valuable than Amazon.com and EBay Inc. combined. Small & Micro Financial, which has no ties to Alibaba other than Ma, is rebranding itself Ant Financial Services Group as it considers a possible share sale later.
How Berkshire’s Weschler and Combs are beating the market
The stock market may be having a rough week, but you wouldn’t know it if you talked to Todd Combs and Ted Weschler of Berkshire Hathaway. From all indications, these two will take over for Warren Buffet, and in essence inherit one of the world’s most impressive portfolios. But who are they? What are their plans? What lead to their past successes? Little is known about the details of this mega portfolio and its men behind the scenes; that is, until now.
Ask Warren Buffett how Todd Combs and Ted Weschler—the stock picking duo who are likely to take over Berkshire Hathaway’s investment portfolio when Buffett is gone—are doing and he is likely to say, “Great.” He’s offered few details beyond that. So, starting a few months ago Fortuneset out to calculate just how well Combs and Weschler were doing.
We poured through Berkshire’s BRK.A -0.88% financial filings and talked to close watchers of Buffett’s insurance conglomerate, which also owns ice cream chain Dairy Queen and railroad Burlington-Northern, as well as people who know the investment styles of Combs and Weschler. Below is what we found out. Both Combs and Weschler have beaten the market since joining Berkshire, but Combs is by far doing the best of the two.
As global economic recovery efforts slow, world financial leaders pledge to give it boost. Is it sustainable?
Economic recovery efforts have slowed down recently, and that has many people concerned. This month, the IMF met for their annual Fall meeting to discuss global financial issues and strategies: the result? World governments and financial institutions need to reinvest in sustainable economic recovery efforts, or it may bring more recession and hardship for the future.
The IMF called increasing economic growth an ‘‘utmost priority’’ during the fall meeting of the IMF and World Bank. In a closing statement Saturday from the steering committee of the 188-nation IMF, the finance leaders also committed to making the necessary structural changes that would boost growth. This echoes concerns voiced by many world leaders and economists, who see a slow global economy as getting even slower if the Ebola crisis isn’t stopped soon.
They also made it loud and clear that they think there is a need for surplus economies to do a better job of fixing holes in their demand modules, which in turn can slow down growth in countries looking to do business with them. They specifically named Germany as holding the responsibility for this in Europe, and singled out China and Japan as baring some responsibility to improve recovery efforts in their region as well.