Alpho: The Most Interesting Stock Market Investments

Dubai, United Arab Emirates, 25 August 2020, (AETOSWire): In the positive atmosphere at the beginning of the week, thePresident of the United States Donald Trump announced that his administration “seriously”considered reduction of capital gains tax together with other measures aimed ateasing the tax burden on Americans. The market confidence was enhanced bylong-term massive monetary and fiscal incentives, and the growing hope of aneffective vaccine against Covid-19, which followed the announcement made by Russiathat its vaccine was approved for use outside of clinical trials.

The promise of potential vaccine developed by major pharmaceuticalcompanies supported by governments all over the world has not been fulfilled sofar. Accordingly, the benchmarking barometer, S&P500 Index, opened close toits high, which was determined before the market slump caused by thecoronavirus. The economic recovery resembles letter “V“.

The chart above reflects theappreciation of S&P500 (candlestick chart) and NASDAQ (orange line). 

In these times, there is a chance to appreciate yourinvestments by investing in companies that are far from their intrinsic value.

The first alternative such as Tesla, Kodak or Nikola that experiencedtheir rapid growth but subsequently, their price on the stock exchange droppedor steadied at the current values. Analysts say about all of theabove-mentioned companies that their fundamental value is lower than theircurrent market value. Another category comprises technological companies suchas Facebook, Netflix or Microsoft whose price to earnings ratio achieves itsrecord high at present but nobody has the courage to stake on their decline. Onthe other hand, there are commodities and their miners that are considered tobe undervalued for a long time compared to other sectors and that is whysome investors stake on their future growth.

There are many options to appreciate your investments. Nevertheless,the crucial current problem in the market is the stock exchange experiencinga massive inflow of retail investors who mostly invest based on masshysteria, which results in an abnormal growth in certain financial instruments.However, such growth is an opportunity for rapid gains and losses. This isthe reason why at present, you should pay much more attention to the selectionof appropriate stocks than in the past.