February 13, 2018

There’s been a Market Correction, Should you be Worried?

Should you be Scared of the Dow’s 1700 point drop

On the fifth of February 2018 the Dow Jones Industrial Average saw its largest single day drop in history. This drop coming off a market sell-off at the end of January has caused many investors to call for the start of a bear market. Are these claims well founded, or just good headlines?

Firstly, dollar amounts are likely the worst way to look at market changes as they skew the data. In 1929 the Dow fell from around 300 to 230. A 70 point move means nothing in today’s market environment.…

January 29, 2018

Artificial Intelligence: Industries Facing Impact

   Artificial intelligence was once only seen in Hollywood Sci-Fi films, but that narrative is quickly changing. Society is progressively becoming closer with AI, as it is used in things we interact with every day where we may not even realize it. Whether it’s with your Amazon Alexa, Siri, or even Google Maps on your commute which uses anonymized location data from smartphones, AI has an increasing presence to make simple tasks much easier. So, what even is artificial intelligence and which industries will it have the greatest impact on? Artificial Intelligence allows machines to learn from experiences, adjust to new inputs and perform human-like tasks.…

December 1, 2017

An Educational Look at Apple (AAPL)

Analyzing Apple

An Apple by itself

Is Apple a stock worth buying? Other people have discussed (at length) its “questionable” product decisions, such as:

  • The touch bar
  • getting rid of Touch Id in favor of using facial recognition
  • Scrapping a whole ecosystem of connectors to push the “Lightning cable”
  • Eliminating the headphone jack from the newest generation of phones.

Beyond those product decisions, how does Apple, the company, perform from a quantitative point of view? What do the financials illustrate, and what should investors’ next course of action be??

To do this effectively the company must be broken up into four individual parts:

  1. Income statement – Earnings, to profit margins, revenue, expenses, etc
  2. Balance sheet – Does it have too many liabilities?
August 20, 2017

Driving Disruption

Disruption in any industry is exciting, but it’s especially exciting in the field of autonomous driving. Autonomous driving or “self-driving cars” seems like something out of a movie, yet it is very close to becoming a reality in our everyday lives. From small start-ups like Drive.ai, a start-up company that looks to fix the uncertainties of autonomous driving through deep learning, to Fortune 500 companies like General Motors, everyone is racing in this highly competitive field to see who will be the first to take a large chunk of the market share. Automakers such as Tesla, Mercedes-Benz, General Motors, Volvo and many more are all working around the clock to be the first to capture what will soon be a multi-billion-dollar industry of autonomous vehicles.…

August 1, 2017

Marijuana Stocks Rant – Why you should be Cautious

Being the 20 something year olds that they are (myself included), millennials want to invest in something that they feel is groundbreaking and familiar to them within the culture of their age group. Many times, this results in them asking me for advice on marijuana stocks. So, instead of going into it with every single friend, I’ve decided to compile my thoughts on the Marijuana industry here.

To start off, yes, Marijuana made Colorado a lot of money in tax revenue, and it seems that the industry is flourishing in this market place. It actually did so well that other places are making recreational use legal.…

June 13, 2017

Are the FANG stocks invincible?

Tech has been on an absolute tear this year with the whole sector up almost 20% since the beginning of 2017, with an outstanding performance from the FANG stocks. FANG is an acronym used for arguably the most notable tech companies in today’s market which have continuously churned out tremendous returns. The FANG is made up of Facebook(FB), Amazon(AMZN), Netflix(NFLX), and Google which is also known as Alphabet(GOOGL), but for this acronym will remain as Google. So far, 2017 hasn’t offered any promising signs of economic growth as the current administration has failed to hit the ground running, even with a unified GOP government.…

May 16, 2017

Trump’s First 100 Days

   There was a lot that went down in President Trump’s first 100 days in office, and a lot that didn’t. The market reacted well when Trump was announced the winner of the presidential election and that momentum stayed going until his inauguration. From his inauguration to the end of his first 100 days in office, the S&P 500 produced a 5.5% gain under the new president. While the market continued to climb, the administration struggled to get all the cabinet positions appointed by congress in a timely manner and you could argue that delayed the legislation and economic policies of the new Trump administration.

May 5, 2017

Best Cities for a Career in Finance

Currently, I am a finance student finishing up my second year at Georgia State University here in Atlanta, Georgia. Knowing that I’m graduating in a couple of years I realized it was time to put in a little bit of research on where I could possibly move after graduation, if I move at all (I really like living here in Atlanta). Now, this decision would have been incredibly easy just 20 years ago when the only real cities on the list would have been Chicago and New York, but times have changed. As the internet grew and the world became more globalized the financial services industry began to grow outside of those two cities – offering up real opportunities for students like myself after graduation.…

April 1, 2017

Trump the Market

   Over the past few weeks’ major indices have continued to hit new all-time highs, it seems like almost every industry is performing well. However, it’s important not to get lost in all the commotion and news surrounding the markets and continue to look for safe investments with “yuge” returns. Under the current administration, investors are anticipating a more pro-business environment complimented by tax cuts and deregulation for certain industries. Since there is a lot of anticipation relying on fiscal policy, it is important not to get ahead of yourself. While the Trump administration is promising a lot of economic growth, many economists beg to differ and argue that we are already close to full natural employment and that there isn’t much room for 3-4% GDP growth.

February 27, 2017
See how XOM's price mostly follows its earnings

Exxon Mobil: Does a prolonged earnings slide mean anything?

Looking at XOM

Companies’ stock prices generally go up when earnings do.  So, when faced with a stalwart household name whose earnings have been steadily going down for two years, what should we do?   Consider Exxon Mobil.  Since it has some history (Rockerfeller founded Standard Oil in 1870), we can take the long view.  Here I present 20 years of price history.

Figure 1 20 years of XOM price history

Since 2007 (halfway across the chart) XOM has gone up about 5% annually, while the S&P 500 went up almost 10%.  What’s more, XOM had the same volatility as the general market .