BullBear Blog

Trading from your sofa? | A look at pandemic investors

By now most of us are aware that investing has become hugely popular over the pandemic – people have more spare money and time to invest. You might be surprised however, at who has been learning to trade, read our article to learn more.

Over the coronavirus pandemic the public have had a keener interest in the state of the economy, this partnered with more free time and arguably more disposable income has allowed for some sidelined hobbies to take centre stage. Amongst gardening and interior design we have seen a huge resurgence in investing!

Social trading platform, eToro has seen a crazy 420% increase in stock trades in 2020 compared to the previous year. The rise of ‘working-from-home investors’ paired with the launch of eToro’s zero commission trading is a winning combination.

If you want to take advantage of eToro’s zero commission, sign up now!

Who are these pandemic investors?

Over the past year millions of people have joined the world of investing. The media has often depicted young people as the main demographic of new investors but this isn’t true! Over the past few years it is true that investors have gotten younger and more women have got involved but over the pandemic it is actually the older generation who’ve been trading from their phones.

Investopedia found around 60% of people who have taken up trading over the last year are between 40 and 74 years old. With 30% of new traders 24-40 that leaves only 4% of new traders being the young folk pictured in the media (18-24). Although eToro, a popular brokerage saw around 40% of their new customer base were under 29 years old.

So how are people learning to trade?

Most people (47%) are learning to invest and trade themselves using a range of resources from websites to books, the least favoured category is the 5% who have learned from social media.

A massive 84% of investors surveyed by Investopedia used financial information websites to learn how to invest with the second most favourable source being financial news outlets.

On top of this a whopping 50% of investors knew very little before the pandemic showing a huge increase in interest in investing money for the future.

So are new traders making a profit?

An incredible 86% of investors say they have made a profit over the last year. When looking at new investors, 53% admit to taking a loss. Interestingly new traders are more likely compared to experienced to hold their portfolio for a short period of a month or less. On the other end of the spectrum we can see most non-trading investors (58%) holding their portfolios for more than 5 years.

Where do you think most new investors are going wrong? Although three-quarters of new traders are confident with their skills, those who admit to mistakes show some interesting results. A massive 56% of new traders hold the majority of their portfolio in only one stock or asset class. Overweighting is an easy mistake to overcome, by trading a variety of assets you can diversify your portfolio and protect yourself from the risk of one asset failing. You’ll thank yourself later when that risky IPO you were going to go all in on flopped. Another common mistake new traders made was being too reactive, 28% traded on a gut feeling alone. To trade successfully the most reliable method is looking at the data and analysing trends, although we’re not saying trading on intuition can’t be successful, it definitely isn’t reliable.

The stats show that new traders typically go for headline investments such as Bitcoin, Tesla, GameStop, Amazon and Apple. Which isn’t really a surprise as it is these very headline names that can get people interested in trading in the first place!

Do you want to be part of the 84% success of new investors? If so, we recommend eToro and easyMarkets for beginners.

How badly has Brexit screwed the UK economy?

Three months after the UK officially left the EU the effect on the economy is worse than expected. Trade problems with Europe and the prevailing coronavirus pandemic are really taking their toll. So how bad is the UK economy?

Boris Johnson has supported Brexit throughout the transition claiming it would allow Britain to regain control of its laws, borders and fisheries. However, closing off the UK economy will break down supply chains that have taken decades to form. Although the EU is only a small and ever decreasing portion of world GDP, it made up nearly half of UK trade. Can the UK make up for this by trading further afield?

Critics say it will be difficult to make up for lost trade with other countries. Uk exports to the EU dropped by 40.7% (~£5.6 billion) in January following Brexit and another COVID lockdown, this produced the biggest monthly decline in trade in over 20 years. Markedly, French, German and Italian data shows a 20% decline in imports from the UK in January as trade frictions were introduced.

UK exports to the EU fell by more than 40% in January
Source: Guardian

The implications of Brexit reach beyond trade, only 1 in 10 manufacturers said they were prepared for the end of the transition period. Although considering the global pandemic going on, the ‘Brexit effect’ might be more than expected.

Manufacturing should gradually recover throughout 2021, helped by new tax incentives which allows businesses to offset 130% of new machinery/equipment. This incentive should hopefully bring some big investment into UK manufacturing.

So what will the economy look like?

In the short term, things will get harder as the transition period ends. Full customs processes will be phased in between April and July facing big challenges to UK imports. Politically, the UK’s decision to extend the grace period on goods from Northern Ireland has damaged UK-EU relations. This might pose a knock on effect long-term on firms that face severe bureaucratic problems.

Overall, the Brexit transition will cause a 0.5% hit on UK GDP in the first quarter of 2021. However, longer term, Brexit will reduce GDP by 6.4% at the annual rate of 0.5%.

If you are still unsure about the effect of Brexit on the UK economy, look at the summary below.

Despite the political and economic challenges of Brexit, the UK’s economic growth is positive. The UK is set to outpace leading EU countries such as Germany, France and Italy, accounting the effects of Brexit. The World in 2050 report forecasts that by 2050, the UK will have fallen by just one place from 9th to 10th in global economy rankings. The UK economy is set to grow at 1.9% annually.

Now you have the rundown on the future of the British economy, do you think it’s safe to invest? If you want to invest, we recommend eToro and easyMarkets for beginners.

How pandemics affect stock markets | A historical view

There have long been large reaching health crises across the globe which have affected local economies, but only recently due to globalisation have we seen pandemics that have damaged global financial markets. Here we look into a history of pandemics and their effect on the stock markets, has COVID had the biggest impact relative to other pandemics?

As globalisation emerged and disease could spread far and wide so followed the negative economic effects.

Asian Flu

1957-1958 | 1-2 million dead

The US had the biggest focused effect of the Aisan FLu crisis. The first wave affected school children which coincided with an economic recession. The Dow Jones Industrials Average dropped 19.4% from summer to autumn of 1957. This event caused political tensions over the integration of public schools and the coming Cold War.

SARS

2003 | 774 dead

The Severe Acute Respiratory Syndrome (SARS) outbreak was a well managed disease outbreak wth only 8,098 people affected worldwide, mainly in China and Hong Kong. There was a few months delay between the break out in Nov, 2002, in March 2003 the S&P 500 had dropped 12.8%.

The SARS outbreak saw IT, finance and communication services as the biggest losers worldwide with retail, travel and leisure suffering most in China. Overall, the world GDP took a 0.1% hit from the SARS outbreak.

Ebola

2013-2016 | 11,310 dead

The Ebola epidemic was centred around Guinea, Liberia and Sierra Leone in West Africa. The greatest hit industry were airlines, cruises and hotels (as to be expected) with shares in American Airlines dropping 20% in a few days after news broke that an Ebola positive customer flew. Whilst service industries suffered, pharmaceuticals boosted. Tekmira Pharmaceuticals rocketed 200% over 2014.

COVID-19

2020-ongoing | 2.8 million dead (Mar 21)

The global coronavirus pandemic is one of the largest health catastrophics of all time with far reaching socioeconomic consequences. Almost all countries are expected to enter into recession as a consequence of the pandemic. The World Bank predicts a 5.2% contraction in global GDP. If we look directly at stock markets, we can see the S&P 500 dropped 31% in March 2020 before recovering 12%. Stock performance has been rocky across the pandemic with extremely high volatility across the board.

Most large indexes including FTSE, Dow Jones Industrial Average and the Nikkei saw massive drops as t Covid-19 cases soared over spring.

The major Asian and US stock markets have since recovered following the announcement of the first vaccine in November, but interestingly the FTSE is still is overall negative since the pandemic began.

So what have we learnt… That disease outbreaks really mess with the global economy. But to look closer at it, we can see that the greatest hit industries are travel and services but these also make the greatest recoveries. We can also see medical and pharmaceutical providers are by far the biggest beneficiaries of these disease events.

Looking to invest? We recommend eToro and easyMarkets for beginners.

Boohoo Shares | Time to buy?

Boohoo (BOO) shares dropped after a scandal broker finding poor working conditions for factory workers in Leicester. Will Boohoo’s attempt to repair their reputation by improving worker conditions and offering the public greater transparency see a recovery of the fashion retailer’s share price?

Boohoo has just announced they will cut more than 400 firms from their supply chain following allegations of poor treatment of factory workers.

The fashion retailer is trying to repair its reputation after claims of poor working conditions and low pay for workers in one of their supplier factories in Leicester. It was said that some workers received as little as £3.50 per hour and there was no protection against the virus available. An inspection found workers’ health was at risk due to finding locked fire doors, unsanitary toilets and no proper drinking water.

Their attempt to remedy serious issues in their supply chain will include working with 78 approved suppliers across 100 factories that ensure respecting staff and to hold a new policy of greater transparency.

The scandal wiped £1 billion off Boohoo’s share price in just two days. Other retailers such as Next and Asos also removed Boohoo products from their ecommerce sites. Share prices have already lifted 2% in reaction.

Boohoo’s share price grew 15% over 2020 as shoppers turned to the online clothing retailer during the pandemic. Despite this growth, Boohoo’s rival ASOS grew an incredible 42%, perhaps due to the saftey of the comapny’s larger market share.

Should I buy?

Analysts recommend BUYing Boohoo due to its huge market potential and safe business model of online sales.

Price Forecast

On the four-hour chart, we see that the BOO share price found a substantial resistance at 376.5p, where it formed a double-top pattern. A double-top is usually a bearish sign. The stock then dropped to 310p last week and is currently consolidating in this range. It is also slightly below the 25-period and 15-period exponential moving averages.

Therefore, in my view, while the overall trend is bullish, there is a possibility of more weakness in the near term because of the negative headlines. However, a move above 360p will invalidate this prediction.

Analysts at Berenberg believes that the stock could rise to 460p, which is 27% above the current level. They said:

“We believe the company is making progress in implementing the near-term recommended improvements that can reduce the risk of pervasive issues in the future, but we also believe more can – and should – be done,”

Boohoo’s efforts to repair its reputation will surely boost its share price. Will you buy?

How to invest for Millennials

This guide will walk you through the best ways to invest as a millennial. Time is the biggest thing you have to your advantage as investing as a millennial, so the sooner your start investing, the more wealth you can accrue over time.

Millennials are people born between 1981 to 1996, dates now clarified by the Pew Research Center. Millennials were named because they welcomed in the turn of the millennium and came of age during the boom of the digital world. If you’re a millennial, digital native or just want to learn more about investing, we welcome you. This isn’t just for those in they’re twenties but can be applied to anyone who is anywhere from 18 to 40!

The problems millennials face

Millennials face the most uncertain economic future since the Great Depression with a massive 15% of those in their early twenties unemployed, compared to the average 7-9%. As a result of decreased labour mobility millennials are stuck in a stage of stagnation. When there is less movement between job to job or even across different areas employers gain the power to negotiate and limit wage increases – a phenomenon called monopsony. Starting off with low earnings compounds, making it harder to save and invest for your future.

Starting off with less household income relative to older generations, living expenses can take their toll. Not only in a more sluggish job market do millennials tend to invest more time and money in getting higher education and further degrees but entry level jobs are more competitive and are at the bottom of the pay scale.

Becoming financially independent is hard. You can gain independence by being frugal or through income, growing wealth overall will make the difference and you’ll be thanking yourself for investing long-term. Broadening your income horizons through education or work experience is the route to becoming more financially independent.

All these things add–up to greater debts and less way to repay them. Some feel that paying off their student debts will be a weight off their shoulders, but this isn’t the smartest move. Student-loan repayments does not make your money work for you, and if you’re in the UK then you are only required to repay 9% of your income once you reach the repayment threshold (£26,575 pa). Furthermore if you don’t manage to repay your outstanding loan balance over 30 years then your debt will be cancelled!

Another thing to add to the list is the shocking interest rates out there. Older generations could deposit their money in a savings account with their bank and with a steady rate of interest build wealth over time. But now with interest rates at an all time low there is little point holding a savings account. Especially with the UK government threatening negative interest rates meaning you will actually lose money by holding it in a bank! In 1990 (around the time your parents probably started investing) banks offered 14% interest, yet since the financial crash wrecked the economy in 2008 interest rates have been around just 0.5%. Remember there is no point putting money in a savings account that has an interest rate lower than inflation.

Saving for retirement is getting harder and harder. Also 70% of people surveyed believed as retirees they’ll be able to survive on $36,000 a year. This is a huge problem is that in 2018, the average yearly expenses for those ages 65 to 74 were $56,268 a year, according to the Bureau of Labor Statistics and with inflation and cost of living only going up, this could end millennials in a sticky situation.

So do Millennials invest?

A Bankrate survey found that only 33% of people under 30 owned stocks in 2016 due to lack of funds. However, since lockdown there has been a huge increase in interest in investing in stock markets from young people. With return rates hovering in the 10% range and those who start investing young benefitting from compound growth. It really is a must!

Why choose ETFs

Get a brokerage account to buy stock – a fractional ownership of a business. The outcome of your investment relies on how that business does, you will get positive investment returns if you invest smart! Buying individual stocks takes a lot of time and research so it might be better to invest in ETFs which allows you to diversify and reap long-term rewards that are stable and reliable.

If you are just starting out the single most important thing to do is to control your emotions. Investing in an ETF allows you to own stock across the stock market. Losing money is part of investing so being able to cope with loss will teach you how to stick with the long-term. You can buy an ETF for a specific industry for example, tech, green energy or gold. For example if you invest in the FTSE 100.

ETFs were created to disrupt the success of mutual funds. Although they are similar, a mutual fund is taxed on any capital gains whereas on an ETF you will only be taxed once at the point you sell your stocks. ETFs are also typically cheaper so can give you a headstart if you’re a new investor.

To invest in an ETF, you will need to open an account with a broker to manage your investments. If you’re just starting out we recommend eToro and easyMarkets for their easy to use interfaces and fee – free trading.

Bonds

Bonds are different from a stock, this way you are instead loaning money to that company so they can invest in their business. Over a period of time, the company pays you interest e.g. quarterly, which acts as profit. If the company is failing and cannot pay back their debts then you lose out.

There are some government backed bonds which are “risk-free”, essentially a government won’t default or fail meaning your investment is safe.

Now you know a few of the best ways to invest as a Millennial you can start putting your money to work, we recommend eToro and easyMarkets for beginners.

Trading 101: Micro-cap Stocks

Micro-cap companies are those with a very small market capitalisation and tend to overlap with penny stocks. They have a lot of potential but also carry high risk. Read on to check out our top micro-cap stock picks.

A micro-cap company can be defined as one publicly-traded market capitalisation between approximately $50 million and $300 million. They fit below small cap companies and above nano caps.

As micro-caps have little capital to support them they tend to have greater volatility and therefore greater risk than larger-cap stocks. Their small shareholder base and lack of liquidity make them high risk. Although with higher risk, comes higher reward. For example, from 2008 to 2018, the Dow Jones Select Micro-Cap Index returned an annualized 11.6%, while the S&P 500 Index returned an annualized 10.37%.

Is the risk worth it?

As there is a higher risk associated with micro-cap stocks than typical stocks it is advised that you set a stop-loss order and fully understand the price you want to enter and exit the trade at. Micro-cap stocks are high-risk investments, so while it is possible to benefit from explosive gains there is also the potential for you to lose money.

Photo by Karolina Grabowska on Pexels.com

Here are some reasons why micro-cap stocks are risky:

Private records mean the public have a lack of information to use to consider buying micro-cap stocks as these companies are not required to file financial statements with the SEC – who regulate markets.
No minimum standards means micro-cap stocks can be listed on OTC exchanges no matter their performance. Needless to say this makes investing in this type of stock risky.
Low liquidity is inherent to micro-cap stocks as they are not traded frequently. This opens up the opportunity of fraud as traders can manipulate prices.

Before you invest in micro-cap stocks, you will need to open an account with a broker to manage your investments.

Choosing the best online stock broker can make the difference from an easy and exciting new experience to constant frustration and disappointment. Accessing financial markets through online brokers is easy and inexpensive but there are so many out there tailored to a different sort of customer so choose the right broker that will optimise your user experience and profits.

If you’re just starting out we recommend eToro and easyMarkets for their easy to use interfaces and fee – free trading.

Our pick of micro-cap stocks

Foxtons (FOXT) is a London based estate agent that should see a boost with the property market rebounding. The company is on a good track with performance improving throughout the pandemic.

Abercrombie & Fitch Company (ANF) is a clothing retailer that has seen a 150% growth in stock price since March 2020.

McBride (MCB) is a UK manufacturing firm that labels products. Shares have increased over 40% since 2019, this sort of growth is set to continue past the end the pandemic with their global expansion plans.

Alumsac (ALU) is a sustainable building materials producer offering a generous 5.4% dividend yield. With a market capitalisation at £61.7m and analysts rating it as undervalued, you’d be a fool not to invest.

Will you be investing in micro-cap stocks? Their greater annualised return is worth the higher risk for some. If you are ready to invest, we recommend eToro and easyMarkets for beginners.

7 Passive Income Streams | Make money while you sleep

If you’ve got a steady paycheck but want to earn a little extra on the side why not try one of our top 7 passive income ideas. This way you can truly make money while you sleep.

Passive income is making money for no extra effort. By investing up front you can receive money on an ongoing basis. This is different from Active income which is where you actively swap your time and effort for income which would be a 9-5 job.

Dividends

Invest in stocks and shares that pay dividends. When a company makes a profit they give a little bit of money to you . Some companies are renowned for paying better dividends than others. There is an added bonus investing in growth stocks as while you invest at the start and get a little bit every now and then the total value of the asset will increase over the period you hold it, so when you are ready to sell you will get a lump sum as a bonus to the dividends to gain whilst you are still holding the asset.

Vanguard Investments

They have a series of low cost trackers and index funds that can invest your money. They track performance of global stock markets with specific indices for your interests. You can invest initially and then leave them to make you money in the background. Vanguard charges a small fee for managing your account and are much better than the industry average. You can also gain from dividends, companies that payout will be reinvested into your account to compound your investment.

Company stocks

If you sign a new contract try asking for shares in the company. While this is not often openly offered by most hiring firms it can be a great way to earn passive income. Often the company you work for will give you a great buy in rate or even through in some shares for free as part of your signing package. So whilst you work your 9 to 5 you can rest assured knowing that you are building wealth through company growth stocks. Not only does this earn you a bit of passive income but it also incentivises you to work harder!

To benefit from Dividends, Vanguard Investments or Company Stocks, you will need to open an account with a broker to manage your investments.

Choosing the best online stock broker can make the difference from an easy and exciting new experience to constant frustration and disappointment. Accessing financial markets through online brokers is easy and inexpensive but there are so many out there tailored to a different sort of customer so choose the right broker that will optimise your user experience and profits.

If you’re just starting out we recommend eToro and easyMarkets for their easy to use interfaces and fee – free trading.

Royalties

Graphics, music, programming, red bubble. If the company continues to be successful or grows you can opt to choose to receive small amounts of money depending on the success of your product rather than taking a flat fee .

Credit Card Cashback

Using cash or debit cards simply hands over your money without benefiting you. But a credit card can be used to pay for pretty much any transaction, food, bills etc. with the hopes that the customer wont pay back the full amount at the end of the month and then can therefore charge interest. But if you pay back your credit card bill in full, you are losing nothing and could benefit from a cashback scheme. You will get rewarded at a percentage, usually 0.25 – 2% for every pound you spend, therefore acting as a great passive income stream as your money is doing the work for you. But make sure you are disciplined and are not just paying more because you are excited by the cashback and are able to pay back your credit card in full by the end of each month.

Rent

Although a more serious option, in terms of investment and time and energy to organise, renting out property is a highly profitable passive income stream. You can earn anywhere from 0 – 15 % return on your investment depending on costs of maintenance and landlords etc. It is also a great growth asset which should increase in value over time so if there was a time where you wanted a large lump sum of money then you could sell the property. Remember renting out property is a complex and time-consuming matter and isn’t for the faint of heart or for people who want to withdraw their investment quickly and easily. It also only makes you money when you have tenants!

Host Airbnb

If owning a property and charging rent seems a little too much hassle then why not informally rent as a host on Airbnb. List your home or spare room on Airbnb when you aren’t using it and charge £50+ per night with little effort.

Passive income can really help create security and supplement your earnings. The work that goes into earning passive income is manageable alongside your 9 to 5. If you are ready to invest, we recommend eToro and easyMarkets for beginners.

Can Royal Mail keep up? Stock Analysis

Royal Mail PLC (RMG) have announced they will introduce Sunday parcel deliveries nationwide in the efforts to keep up with Amazon. Will this keep their share price bullish when lockdown ends?

From next month, Royal Mail will deliver parcels across the UK seven days a week in response to the high demand of online shopping over the pandemic. The service will allow customers to specifically request delivery on Sundays from retailers who use Royal Mail.

Royal Mail is making efforts to future proof their service with new CEO Simon Thompson making that his focus. He also aims to maintain good relations with trade unions. One of his first moves was to broker an agreement with the CMU on the employee pension scheme and cut the working week by 1 hour which could save £225 million per year. And when the company saves, the investor gains.

The Royal Mail share price has risen by 175% since September 2020. While share price increases were expected from the start of the pandemic last spring due to a surge in parcel volumes, the company has surprised analysts with the rate of recent gains. RMG has certainly made a comeback following a slow decline in share price over recent years.

In Q4 of 2020, Royal Mail delivered 496 million parcels, which is an all-time record for the company. The consumer shift towards e-commerce and online shopping has resulted in a massive increase in parcel delivery whilst a 14% decline in letter delivery over Q4 was found. To keep up with demand, Royal Mail has kept on 10,000 of the 33,000 temporary staff hired to cover the hectic festive season suggesting things are looking up.

An estimated profit of £500 million in 2020 equates to an outstanding 78% year-on-year growth rate.

Buy or Sell?

The Financial Times’ analysts saw RMG as an outperformer. The outperform rating means the company will produce a better rate of return than similar companies but is not the best stock out there in the industry.

Before you invest in RMG, you will need to open an account with a broker to manage your investments.

Choosing the best online stock broker can make the difference from an easy and exciting new experience to constant frustration and disappointment. Accessing financial markets through online brokers is easy and inexpensive but there are so many out there tailored to a different sort of customer so choose the right broker that will optimise your user experience and profits.

If you’re just starting out we recommend eToro and easyMarkets for their easy to use interfaces and fee – free trading.

Price Forecast

Over a year, the Royal Mail stock price are expected to fall slightly. The 15 analysts offering 12 month price targets for Royal Mail PLC have a median target of 480.00, with a high estimate of 708.00 and a low estimate of 284.00. The median estimate represents a -3.13% decrease from the last price of 495.50.

If you are interested in dividends it doesn’t look good. In 2020, Royal Mail PLC reported a dividend of 0.08 GBP, which represents a 70.00% decrease from last year. The 9 analysts covering the company expect dividends of 0.05 GBP for the upcoming fiscal year, a decrease of 40.00%.

With the pandemic coming to a close, will online shopping produce enough parcels for Royal Mail to stay bullish? If you are ready to invest, we recommend eToro and easyMarkets for beginners.

5 Inspirational Female Investors

Let’s celebrate International Women’s Day together. In a male-dominated world it is important to recognise female role models to inspire women to enter the world of finance. Here are five inspirational female investors who rose to the top of the finance industry.

Finance is a strongly male-dominated industry with only 19% of senior positions in the investment sector held by women (according to Catalyst Research). Entering the world of finance as a woman can be challenging, employers can underestimate, expect unreasonably high standards and be opposed to hiring us all together. The role models we will introduce go above and beyond expectations and with hard work and grit they are willing to stand out and take risks to make it in finance.

Considering women make up 50% of the world population it is crucial to include women in the workplace to raise the economic potential of a country. Inequalities have long been a barrier for women to participate in business, finance is among the top sectors for gender discrimination.

Read our article on why women make better investors than men.

Geraldine Weiss

Geraldine Weiss was one of the first women to become big in finance. She grew her success by self-learning before studying business and finance. When applying to investment firms after her studies she was rejected multiple times despite being more than qualified for the role. She commented “It was a man’s world, and women need not apply,”.

After a series of rejections, Weiss decided to start her own investment newsletter in 1966. To avoid further gender discrimination, Weiss signed her newsletter “G. Weiss.” She only revealed her gender identity a decade later after proving her strategies were a huge success.

Her newsletter, Investment Quality Trends is still going today, based on Weiss’s incredibly successful value-based, dividend-oriented stock-picking strategy.

Muriel Siebert

Muriel Siebert entered the world of finance as a researcher before climbing the ranks to partner before starting her own brokerage firm Muriel Siebert & Co. in 1967.

Siebert was determined to get her firm registered with the NYSE facing numerous rejections. Eventually she succeeded and her firm became the first woman-owned member of the NYSE. It is still the only national, woman-owned brokerage on the exchange.

Siebert didn’t stop there and went on to bring her financial expertise to politics, another male-dominated field. As New York State Banking Department Superintendent from 1977 to 1982, in a rocky market, she helped prevent bank failures to support the US economy.

Abby Joseph Cohen

Abby Joseph Cohen served as a Federal Reserve Board economist in 1973 before moving to work for firms such as T. Rowe Price, Barclays, and Drexel Burnham Lambert. In 1990 she joined Goldman Sachs and became a partner just 8 years later.

Cohen was listed on Forbes‘ “Most Powerful Women” celebrating successful women across all professions.

Lubna S. Olayan

Lubna Olayan probably faced the most challenging cultural barriers of all our women in finance. As a Saudi women, it is not socially acceptable for women to work let alone work in business, and back in the 80’s! Olayan gained support from her family and overcame gender discrimination to become CEO of Riyadh-based Olayan Financing Company, one of Saudi Arabia’s most prominent companies. She now employs more than 540 women in her company and constantly campaigns women in the workforce.

Linda Bradford Raschke

Last but not least, we explore Linda Raschke’s achievement to become president of not one, but two financial firms that bear her initials: LBRGroup, Inc. and LBR Asset Management. After kicking off her career in the early 80’s Raschke has constantly challenged a male-dominated workforce. Starting as a market maker and then becoming a day trader Raschke has had all the experience needed to write her popular book on high probability trading strategies. She has also lectured on trading at Bloomberg.

Being a woman in finance means high pressure, but also high visibility. Many women in finance still face gender discrimination and lower pay for comparable work. Take inspiration from these women to start changing a male-dominated industry. If you are ready to start trading, we recommend eToro and easyMarkets for beginners.

Buy the Dip | Abbott Laboratories

Abbott Laboratories has just got emergency use authorisation from the U.S. health regulator or its molecular test to detect and distinguish the coronavirus and two types of flu viruses with a single test. Will this set a bright future ahead for the medical company?

Shares of Abbott Laboratories (ABT) slid 2.66% to $116.01 Thursday, a rough trading session for the stock market, which saw the S&P 500 Index falling 1.34% to 3,768.47 and Dow Jones Industrial Average falling 1.11% to 30,924.14. Abbott Laboratories closed $12.53 below its 52-week high ($128.54), which the company achieved on February 12th.

The stock underperformed when compared to some of its competitors Thursday, as Johnson & Johnson fell 2.02% to $153.07 and Pfizer Inc. fell 0.55% to $34.20. However, with the announcement today if a new test being launched in the US will the stock make a strong recovery?

Abbott Laboratories announced the U.S. health regulator has granted emergency use authorization for its molecular test to detect and distinguish the coronavirus and two types of flu viruses with a single test, which can also be used worldwide. This is crucial to diagnosing and managing COVID-19 as the viruses present similar symptoms but require different treatment approaches.

Company Performance

So now you know why today we are focusing on ABT stock lets take a look at the company’s performance.

Abbott Laboratories set a record high in 2020 benefiting from their wide range of successful coronavirus tests.

In December, the company announced the FDA granted its BinaxNOW Covid-19 an emergency use authorization for at-home use. This meant the rapid antigen test was allowed for use in the home, where previously not allowed. ABT has supplied over 180 million BinaxNOW COVID-19 tests to this date.

In the fourth quarter, sales surged 28.7% to $10.7 billion, with adjusted earnings of $1.45 per share soaring a massive 52.6%. Considering these reports were mid coronavirus pandemic, diagnostic sales soared 108.9% to $4.35 billion and coronavirus testing contributed $2.4 billion in the quarter. This means medical device sales have slightly dropped, although not surprisingly considering the delay in elective procedures during the pandemic.

Buy or Sell?

Overall Abbott Laboratories’ contribution to tackling the global pandemic has set them in good stead recently. Over the past few months analysts have recommended to BUY, we would like to suggest the current dip and recent announcement as the perfect opportunity to BUY that will give a slight edge over the longer trend seen.

Before you invest in ABT, you will need to open an account with a broker to manage your investments.

Choosing the best online stock broker can make the difference from an easy and exciting new experience to constant frustration and disappointment. Accessing financial markets through online brokers is easy and inexpensive but there are so many out there tailored to a different sort of customer so choose the right broker that will optimise your user experience and profits.

If you’re just starting out we recommend eToro and easyMarkets for their easy to use interfaces and fee – free trading.

Price Forecast

The 17 analysts offering 12-month price forecasts for Abbott Laboratories have a median target of 137.00 representing a +18.14% increase from the last price of 115.96.

It’s worth noting that Abbott’s earnings and sales gains in the fourth quarter are expected to repeat in the first quarter. Although with the pandemic being better controlled each day, keep an eye on the need for coronavirus testing.

The overall recommendation is to buy stock in Abbott Industries. Their success through the pandemic and strong R&D bringing out new types of COVID-19 test regularly puts the company in a strong position of growth. If you are ready to invest, we recommend eToro and easyMarkets for beginners.