Economy
3 great stocks to buy when the stock market crashes
When the curtain finally closes, 2020 will almost certainly be one of the most volatile years in history for Wall Street and investors. Uncertainty Caused by the 2019 Coronavirus Disease (COVID-19) Pandemic Initially Set the Benchmark S&P 500 declined 34% in the first quarter. This was followed by the strongest sharp rally ever, with the S&P 500 rising to new highs in less than five months.
But just because the stock market has completed a full turn in six months does not mean that volatility is gone.
Image source: Getty Images.
The market crash last Thursday, which saw the S&P 500 shed about 126 points, was the eighth largest one-day one-point drop in history. Of course, keep in mind that a 3.5% drop is not one of the worst days for the stock market. The move, however, sends a clear signal that significant economic uncertainty remains and that the stock market could crash without warning.
While a stock market crash can be unnerving in the very short term, this is really fantastic news for long-term investors with dry powder at the ready. This is because every stock market correction in history has ultimately been erased by a bull market rally. If investors choose to buy high quality companies when the stock market goes up, they usually win in the long run.
While it’s too early to tell whether last week’s turbulence will turn into something akin to a full-blown correction, here are three great stocks to consider buying when the stock market does crash.
Image source: Getty Images.
Teladoc Health
Prepare your sticks because this time to beat the drum on the telemedicine giant Teladoc Health (NYSE: TDOC), again.
beauty health care stock is that even if they are caught in an emotional vortex that is a stock market crash, the demand for their products and services remains largely unchanged. Since we don’t have the ability to choose when we get sick or what diseases we develop, the cash flows for healthcare companies are fairly stable no matter what happens in the stock market.
More specifically for Teladoc, he saw incredible growth in demand for virtual doctor visits… Yes, COVID-19 played a key role in Teladoc’s growth in 2020, with visits during the quarter ending June increasing by an astounding 203% to 2.8 million. But that doesn’t mean Teladoc didn’t grow like a weed long before the coronavirus pandemic changed our way of life. The pursuit of convenience and precision medicine boosted Teladoc’s revenue from $ 20 million a year in 2013 to $ 553 million in 2019, well before COVID-19 was declared a pandemic.
Telemedicine is an essential component of the precision medicine of the future. This frees up more time for consultation between the patient and the doctor, provides consultation flexibility for both parties, and is actually cheaper for insurance companies than visiting an office. While we’re not going to see personal trips to the doctor stop, the runway for virtual visits is huge, and Teladoc is still just scratching the tip of the iceberg when it comes to its potential.
One final note: Teladoc is in the process of merging with application health signal provider Livongo Health (NASDAQ: LVGO) in the deal with cash and stock. Livongo uses mountains of patient data and artificial intelligence to send advice and nudge patients with chronic conditions to help them achieve sustainable behavioral changes. This works wonders for the company’s diabetes participants, and Livongo has already gone beyond profitability despite only owning 1.2% of the US diabetes market. After a complete merger, this company will become a precision medicine center.
Image source: Getty Images.
AT&T
For the more conservative investors who are not overly interested in the short-term volatility that Teladoc can bring, let me suggest buying the telecom giant. AT&T (NYSE: T)…
When you think of essential goods or services, the idea to buy food, water, or pay for electricity or natural gas probably comes to mind. But what about our addiction to mobile phones? As technology has improved, access to smartphones and wireless technology has lowered costs, making mobile phones something of a basic service for many adults in this country. Since AT&T’s business model is primarily subscription-based, the stock market crash is unlikely to have much, if any, impact on wireless subscribers.
It should also be noted that AT&T has been rolling out its first wireless infrastructure upgrades in about ten years. This transition to 5G networks won’t happen overnight, and consumers won’t update their wireless devices right away. However, this investment in faster download speeds will inevitably lead to a multi-year technical update cycle that powers AT&T’s highly profitable wireless segment…
Investors shouldn’t overlook the company’s streaming capability either. As the DirecTV subsidiary continues to drain subscribers through cutting the cord, AT&T is counting on its streaming offerings, HBO Max, and its own networks (TNT, TBS and CNN) to attract paying customers. The purpose of the guide is to double the number of subscribers to streaming channels worldwide on HBO Max and HBO (cumulatively) to about 80 million by 2025.
Best of all, patient investors will receive a dividend yield of 7% with AT&T, this is one of the highest and safest returns you will find. If volatility is making your stomach spin, AT&T is a great place to keep your money.
Image source: Getty Images.
Visa
Another wise idea when the stock market crashes is to buy a payment intermediary. Visa (NYSE: V)…
As you can imagine, the COVID-19 pandemic has damaged consumer spending and pushed the U.S. economy into its first recession in 11 years. This is bound to reduce the amount of money consumers spend, ultimately hurting merchant fees that intermediaries such as Visa charge.
But here’s another way to look at this data. During the Great Recession, Visa saw only one year-over-year (2009) decline in terms of the gross dollar value passing through its payment network. Between 2009 and 2018 Visa’s US credit card market share by purchase volume increased more than 9 percentage points to 53%, and the volume of purchases on his network more than doubled from $ 764 billion to $ 1.96 trillion. Visa is the preferred payment operator in the world’s # 1 economy, which is dependent on consumption.
Visa also acts exclusively as an intermediary for cashless payments… While some of its data processing partners also act as lenders, Visa does not lend money. This may seem like a bad choice, given the potential to double income streams during periods of economic growth. However, this means Visa is not directly affected by loan delinquencies during inevitable periods of economic downturn or recession. When there is no need to set aside loan loss provisions, Visa’s margin is stable at 50% or higher.
In addition, Visa has a ridiculously long runway for growth… Most of the world’s transactions are still in cash, giving Visa a great opportunity to attract new merchants and wage a war on cash in underbanked regions such as the Middle East and Africa.
If the stock market crashes, Visa is a great stock to consider.
The global financial markets are now hugely complex, with traders and analysts around the world looking closely for signs of movement. What are some of the most important factors to be aware of that impact the financial markets?
Geopolitical events
With news breaking from different countries throughout the day, many different stories could affect the markets on any given day. For instance, economic indicators such as the European Central Bank’s inflation rates and gross domestic product numbers released by each country can determine which direction the markets take. Stocks, currencies and other financial instruments can all vary depending on these areas.
Major events such as war breaking out, natural disasters and elections also have an effect. When we look at the commodities market, climate change is an issue to bear in mind, with unusual weather sometimes causing scarcity or abundance of a certain product.
An interesting aspect of the modern financial world is the way that the different markets are linked. This means that any important event or news story that affects one area could easily affect another, even if the link isn’t obvious at first sight. We can also see how local shocks and events can quickly have an effect at a global level.
The financial crisis of 2008 is a good example, as it started with a serious downturn in the US housing market. Although this appeared to be a localized issue at first, it soon revealed some major issues with the global banking setup that caused problems around the planet affecting millions of people and diverse industries.
Speculation and investment trends
The previous factors all point toward the markets changing, and there’s no shortage of traders around the world waiting to see what happens next and how they can benefit. This means that we need to take into account other issues such as speculation and investment trends in the markets.
Armed with a variety of tools, including candlestick charts, traders try to identify trends such as support and resistance levels. They use the information they glean from the charts to make their moves, which can influence the general market if enough people make the same moves or if the amounts involved are significant.
Once an investment trend begins, it can have a knock-on effect that would have been impossible to predict at the outset. The example of Bitcoin and other cryptocurrencies shows how something that starts small can grow impressively. Cryptocurrencies have now gained enough mainstream appeal to influence and disrupt many industries, from healthcare to gaming and banking.
It’s important to understand how the leaders of a company operate and how they have faced challenges in the past. If we look at banking and the Bank of New York Mellon in particular, we can see that its history can be traced back to 1784, so it has overcome all the major events that have occurred since then. With some of the biggest names in the business world making up its key institutional investors, this is a company that we would expect to react effectively to changing markets.
Regulatory changes and company results
Just about every industry represented in the financial markets has laws and regulations that govern it. This means that the fear of harsher new laws is an almost constant threat. Meanwhile, the hope that beneficial changes to the regulations help businesses prosper is the other side of this matter that investors keep a close eye on.
Let’s not forget the role played by the profit and loss results produced by major companies. It’s clear that these results have an almost immediate effect on their stock prices. However, we should also bear in mind that this effect can reach other areas of the economy. A surprising set of results for a large business can produce shock waves that travel around the market.
What impact do they cause?
From the wide variety of examples that we’ve looked at here, it’s clear that the impact isn’t going to be the same in every case. While one set of circumstances might snowball and cause a huge impact, another might cause a limited impact before the news disappears as other events overtake it.
Having said that, one of the key issues that they cause is a higher degree of market volatility. We can see how this works by looking at an area such as the COVID-19 pandemic in 2020. The markets became a lot more volatile as the different aspects of the pandemic became clear. Streaming companies, healthcare companies and video conferencing technology firms made huge profits, while airlines and hotels were among those to lose out massively.
Working out the overall impact of a particular situation is almost impossible to do now. With so many traders looking over the latest news stories and numbers with advanced tools, the original impact can quickly grow or simply disappear. Therefore, the key for investors is to understand emerging trends and react to them before it’s too late.
These details reveal how complex the global financial market is now. It’s a fascinating world, and with more information at our fingertips than ever before, it’s something that anyone can start to research and understand in their own way.
OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.
“The Centodieci combines all the values of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.
This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.
This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.
Recall that each unit costs the owners eight million euros before taxes.
Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.
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BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.
The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.
The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”
Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.
Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.
Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.
Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…
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