Tech Sizzles. ECB. Million Dollar Make Over

 

VIP Trades 

(April 28/ 2017)  

 

Tech Stocks Sizzle For Investors

The first quarter financial results for both Alphabet and Amazon were reported on Thursday – and both companies saw their stocks jump higher as their performance beat Wall Street’s expectations! Despite some potential speed bumps, these tech giants just keep delivering. Investors were worried that revenue at Alphabet’s Google might be hurt by advertisers pulling ads due to the recent controversy concerning YouTube ads appearing alongside objectionable content. In addition, Amazon fought off concerns that its cloud business might start suffering from more competition. But the impact of both of these concerns, appears to have been minor (at least, so far). In short, it was pretty tough to quibble with another strong quarter from these tech giants.

What Does This Mean?
For the markets: Investors expectations for tech stocks keep increasing, and continue to be validated. 
A word of caution. There is a tendancy when a stock performs well, for more and more investors hop on the bandwagon and push the price up even higher – as has happened with Amazon and Alphabet. Sometimes, investors’ optimism gets far ahead of reality and the stock prices come crashing back to earth, but that’s just not happening with popular tech investments such as Alphabet, Facebook, Amazon,  and Netflix. Alphabet and Amazon were both up almost 5% to fresh all-time highs after reporting their results. 

The bigger picture: There is nothing investors love more than steady growth – and it’s scarce right now. 
It’s higher future profits that ultimately drive long-term returns for stocks and this is what investors crave. And while companies this earnings season have exhibited some of the best revenue and profit growth in recent years, growth remains at a relatively low level historically. That puts a premium on companies that are growing, whether they are relatively small startups being privately funded or the biggest companies in the world having investors push up their stock prices.



No Interest Hike with ECB

 

No changes were announced on Thursday when The European Central Bank (ECB) held one of its regular meetings. Pressure is building on the ECB to follow the path of the US central bank and push interest rates up. The ECB has taken various extreme actions in recent years to force interest rates in the eurozone down to historically low levels. The idea has been that lower interest rates encourage people and companies to borrow, and thus spend, money – which provides a boost to the economy. 

Growth has picked up and unemployment is falling, so the economy now appears to be recovering relatively well. In theory, this should cause the ECB to reverse some of its actions and allow interest rates to rise – which would then allow the ECB to force interest rates down in the future when the economy, once again, slows down. But on Thursday the ECB said, essentially, said that the recovery isn’t strong enough yet to do that.


What Does This Mean?
The bigger picture: The actions of the ECB are keeping the value of the euro low. 

If action was taken by the ECB that led to higher interest rates in Europe, the euro would likely go up in value as more international investors buy the euro in an attempt to earn those higher interest rates. As long as the ECB is unwilling to take action to increase interest rates, it will continue to keep downward pressure on the value of the euro. 

For the markets: Investors are watching the US to see how higher interest rates impact the markets. 
Interest rates have already been raised by the US Federal Reserve, which has helped push down the value of US government bonds. Bonds pay a fixed amount of interest and so, when interest rates go up, the existing bonds, which are stuck paying investors a lower interest rate, go down in price. In contrast, bank stocks have performed relatively well since banks are able to make more income by charging higher interest on the loans they make. There are, of course, also other impacts.
 

Investment Beauty Salons

 

Making the Dream Reality

Wanika Kalani has worked as a manicurist in a Chelsea Beauty Parlor for a number of years and always envied the stories of the rich and famous that she pampered to each day. 'I wish I had that money, or car, or tax problem' she used to think quietly to herself. But alas, what can a manicurist dream of beyond her mediocre income in a beauty parlor? She had day dreams of saving money and opening up her own Beauty Parlor however she didn't really have the business know how to do all that or the energy after a hard days work.

One day a client of hers mentioned that she makes more money than her husband with her investment hobby. 'Even you could do it', she said jokingly. 'They do everything for you.' Wanika's ears perked up. Maybe this was the opportunity she had daydreamed about. That night she called GSI and registered an account. She did not have much to invest however she was intrigued by the networking possibilities.

Free Network Training

I met Wanika at one of our free training sessions for Network Marketers. I was very impressed by her keen interest and ambitions. I explained to her that the secret to success is to channel the same excitement that she had when she first heard about this opportunity, to others. Wanika soon became a psychiatrist and financial advisor to her affluent clients.

Bored housewives became assertive and through Wanika found that they could multiply their allowance and impress their husbands. Of course there are many female CEO's who also get manicures and took this even further.  All of Wanika's clients that signed up under her went on to make very high end profits. Who do you suppose made 20% of those profits? Wanika.

Wanika Kalani  - Investment Manicurist

 

Making Money Without Even Trying

After a year Wanika left the beauty industry. Now she goes to manicurists every two weeks and guess what the conversation is about? Remember its easy to make money if you have the right idea, the energy, and the tools and support. If you would like to start your own business like Wanika did feel free to contact me.  I will be happy to assist you and offer you full time support without any investment.

 

Feel free to contact me with any questions or concerns.