Currency “Flash Crash” 💰 EV’s Norwegian Takeover 🔋

by | 3 Jan, 2019

 

1. Currency “Flash Crash”  

A surge of risk-aversion slammed into Asian currency markets this morning as investors headed for the hills, sending the Aussie Dollar (AUD) through the floor and the Japanese Yen into orbit.

Apple’s sales forecast cut was the culprit that caused the massive flight to safety which was aided by thin holiday volumes and vicious algorithmic selling, making the movements even more extreme.

In the space of 7 minutes, the Yen skyrocketed 8% against the AUD and 10% against the Turkish Lira, pushing the Aussie currency to its lowest level since 2009. By crikey!

With the Yen being a traditional safe-haven and the Aussie Dollar seen as a gauge for global risk appetite, it paints a rather grim picture of investor sentiment in the markets.

Both the Yen and AUD are expected to firm this year as the US Dollar’s strong run in 2018 potentially softens on a looser policy outlook from the Fed. All eyes will be on Jerome Powell tomorrow for any signs of fewer rate hikes to come as concerns of global growth have undoubtedly become more pronounced.

It’s crunch time, Mr. Powell.

 

2. EV’s Norwegian Takeover

The Norwegians have taken the lead in electric vehicle (EV) adoption with sales up an incredible 40% in 2018. A third of all vehicles sold in Norway are now zero-emissions, and the world is taking notice. 

A seismic shift is happening in the car market and the smart manufacturers are scrambling not to be left in the dust of the likes of Toyota, Nissan, Tesla, Hyundai and many more. 2019 is undoubtedly set for the biggest boom in the EV market on record. Have you prepared for it?

General Motors scrapped multiple plants at the cost of thousands of jobs to restructure its business model to cater to the whirlwind of demand in the EV market, and investors responded positively to the strategic reorientation. If that doesn’t scream change, we’re not sure what does!

One persistent issue, however, is President Trump’s removal of the $7,500 tax rebate for EV’s which has already affected Tesla this year. In response, Musk’s generous $2,000 discount on all models, coupled with weaker sales data was met with an 8% slide in its share price yesterday….Yikes.

Nevertheless, despite the loss of the industry’s associated tax benefits, analysts remain confident that the EV boom is just getting started. So get plugged in, people!

Today we are watching…

1. General Electric (#ge)

After a dismal 57% decline in 2018, GE has started off on the right foot in 2019, bouncing 8% yesterday. The positive sentiment has emerged after announcements that the company intends on restructuring its business model. The plan includes spinning-off its profitable healthcare division, emphasising its promising aviation department and shoring up some of the debt on its books. Let’s see if they can make it happen!

2. Johnson & Johnson (#jnj)

Johnson & Johnson looks set for more pain as the controversy surrounding its knowledge of cancer-inducing asbestos in their baby talcum powder heats up. Sales in India, one of its largest markets, have dropped by 3%, adding to the company’s distress. Even the announcement of its 2.79% dividend may not be enough to stem the tide of selling should more incriminating evidence come to light.

 

 

 

 

 

 

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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