The era of negative US interest rates coming?

Recently, the US Federal Reserve suddenly cut interest rates and US stocks fell sharply. Most investors believe that the ten-year bull market for US stocks has ended.

In terms of the US dollar index, after a period of decline, the US dollar index rebounded sharply, indicating that risk aversion was high, and market funds were flowing to the US dollar to hedge.

The Fed ’s interest rate cuts have not saved the US stock market. The Fed ’s interest rates are now very low. If the Fed continues to cut interest rates in the future, the United States will soon enter the era of negative interest rates. Take Europe and Japan as examples. Negative interest rates have not restored the country ’s economy. The future economic situation of the United States is not optimistic.

The reason for the negative interest rate is that the investment must be profitable, otherwise, it will not be invested. If the profit is low or loss, the investor will directly deposit the profit to the bank. When social investors deposit money in the bank, the money in the society will decrease. Already.

When there is less money in society and the number of commodities does not change, the price of commodities will fall, which is deflation. When deflation occurs, people are reluctant to buy things, because they will know that the price of goods in the future will be cheaper than today, that money will become more and more valuable, and that goods will become cheaper. This has led to a reduction in the country's commodity trading volume, which has affected the country's economic operation.

When it affects the economic operation of the country, the country adopts financial policies to enable investors not to deposit money in banks, but to invest money in society and create more value. When a negative interest rate is implemented and there is no gain in saving money, the funds will flow to society.

It may be that the epidemic has affected the economic operation and caused the US stock market to plummet. If the United States can effectively control the epidemic and implement effective anti-epidemic measures like China, then the US economy will soon recover, the bear market will soon end, and a new round The bull market will soon return.

VRTX stock forecast 2025: Vertex is undervalued

Let's look at some biotech companies with stable cash flow and currently undervalued value stocks as targets for diversified portfolios. The company I shared today, called Vertex Pharmaceuticals (VRTX), is dedicated to the development of rare diseases, especially Cystic Fibrosis (CF). I have always had high respect for the rare disease group of pharmaceutical companies in the disease category. In addition, in the future, gene and cell therapies are subverting the role of rare diseases in the pharmaceutical industry, making rare diseases no longer uncommon. It's tasteless, but a field full of the future. Vertex Pharmaceuticals Inc. was established in 1989 by Joshua Boger and Kevin Kinsella. is headquartered in Boston. At that time, several very good research and development companies were established in the United States, including the aforementioned Regeneron, Gilead, and today's Vertex. Vertex In the past, he devoted himself to the development of small molecule drugs, wh...

ASML stock forecast 2025: is it time to buy now?

Hello everyone, recently, because the market has a lot of fears about rising interest rates and shrinking the balance sheet, the Nasdaq as a whole has fallen a lot, and each support has basically been broken one after another. The general price has also broken, so there is no good signal to increase positions in the short term. It may be safer to hold cash first and wait until the decline begins to slow down a little or see a really cost-effective price before considering adding positions. However, the long-term bull market in the future will not end because of this year's interest rate hike, and cash will only become more and more worthless in the long run. In the short-term continuous decline of the stock market, we must put our minds in a positive state. At the same time, we must properly organize our thoughts and positions, prepare bullets, and use this time to do our homework for the stocks we are interested in. In this way, when a good price appears in the future, you will be...

AMD stock forecast 2025: Q2 is expected to perform strongly

Before the US stock market on July 19, US technology stocks continued their decline last Friday, and AMD's stock price also continued to fall. AMD will announce the results of the second quarter of 2021 on July 27. The market expects this performance to be strong, so this round of decline may be a great opportunity to buy the stock. financial indicator Due to the strong market demand for CPU and graphics cards in 2021, AMD’s revenue is expected to exceed the maximum value of the financial guidance. AMD’s C&G business is expected to grow the most because higher-priced AMD Ryzen and high-end AMD Radeon sales continue to increase. In terms of gross profit margin, the market expects AMD's gross profit margin in Q2 2021 will increase by 47% year-on-year. If the average selling prices of CPUs and GPUs continue to rise in Q2 of 2021, and the ASPs of CPUs and GPUs will increase in Q1 of 2021, the gross profit margin may also increase by 48%. CPU market sh...

Cloudflare's 4Q 2021 earnings report

Just took a look at Cloudflare's (NET) 4Q 2021 earnings report. Cloudflare is in an area that covers several hot spots, including content delivery networks, i.e. CDNs, cloud computing, and cybersecurity. For the Cloudflare quarterly report, here is a summary: 1) Revenue of $194 million (then expected 4Q revenue in the range of $184 to $185 million), up 52% year-over-year ($172 million in 2021, up 51% year-over-year). 2) The number of customers continues to grow rapidly, with the total number of customers has reached 1416 (1260 in the previous quarter). 3) Non-GAAP gross margin was 79.2% vs. 78.1% in the same quarter last year (vs. 79.2% in 3Q vs. 77.3% in the same quarter last year.) Non-GAAP net income has started to turn around, meaning it has started to be profitable. 4) Revenue is expected to be in the range of $205 to $206 million in 4Q. That works out to about 6% YoY growth. Cloudflare had good results this time, beating its previous guidance. Revenues are still growing at a...

Intel, Twitter, and Snapchat stock forecast 2025: latest quarterly earnings reports

Three technology companies, Intel, Twitter, and Snapchat, released their latest quarterly earnings reports. Let's take a look at their performance and the key information revealed at the earnings conference. Intel(INTC) stock forecast 2025 Several important data on Intel's earnings report beat expectations. Among them, earnings per share were US$1.28, higher than the expected US$1.06, an increase of 12% over the same period last year; total revenue was US$18.5 billion, beating analysts’ expectations of US$17.8 billion. However, in Intel's guidance for the next quarter, the Non-GAAP gross profit margin given is only 55%, which is far lower than the market's expected 59.2%. The reason given by Intel is that it is worried that supply chain problems will limit profitability, and the expected chip manufacturing business will bring additional costs. For chip companies, the market is most concerned about gross profit margin. TSMC fell last week b...

FB stock forecast 2022: Facebook’s latest earnings report analysis

Today I will interpret its just-announced financial report for the second quarter of 2021. combined with the digital advertising industry's general development direction and competitive landscape. First, let’s summarize Facebook’s latest earnings report. I think Facebook’s second-quarter earnings report is very, very good. We can see how good it is from year-on-year and quarter-on-quarter. Revenue in the second quarter increased by 56% year-on-year, while it increased by 48% year-on-year in the first quarter. Operating profit in the second quarter increased by 107% year-on-year, while the first quarter increased by 93% year-on-year. Net profit increased by 101% in the second quarter, compared with a year-on-year growth of 94% in the first quarter. Earnings per share in the second quarter increased by 101% year-on-year, while the first quarter increased by 93% year-on-year. The operating margin in the second quarter was 43%, compared to 32% in the same period last year. The perform...

NIO and Tesla(TSLA) stock forecast 2025: released important news

In the past two days, two electric vehicle companies, NIO and Tesla have released important news. However, the market gave mixed reactions, one rose and the other fell. Let's take a look at what happened. To NIO stock forecast 2025 Let me talk about NIO first. NIO announced this morning that the company will issue additional shares totaling US$2 billion. The price of the additional issuance will be based on the current market price, and the timing of the issuance will be determined according to the company’s needs. It may be a one-time sale or a share. Wholesale sale. After calculation, this will cause about a 3% equity dilution for existing shareholders. However, the market seems to have given more interpretation. Today, NIO's share price has fallen by 6.3%, which is more than twice the theoretical dilution. To From the prospectus, the company only stated broadly that the funds raised will be used to strengthen its bala...

C3.ai stock forecast 2025: Is it time to buy now?

Few emerging technologies are as exciting as artificial intelligence. We have witnessed its ability to be applied in new ways, from quickly analyzing large amounts of data to improve the efficiency of hardware and software. C3.ai(AI) is one of the only companies in the world that develop artificial intelligence into independent services. In short, artificial intelligence is its entire business. Investors avoided such stocks this year because large technology companies began to engage in artificial intelligence projects, raising concerns about increased competitive threats. However, C3.ai continued to increase revenue, narrowed its losses, and added 82% of its customers in the fourth quarter of fiscal 2021. Therefore, the stock price has fallen about 60% so far this year, which may be a huge opportunity for those who want to get involved in this field. A unique business case Imagine that if a company needs to develop its own artificial intelligence, sim...

NFLX stock forecast 2025: plummeted 22% after the earnings report.

Time to talk about Netflix, which plummeted 22% after the earnings report. First of all, Netflix's financial report this time does have its thunderous place, but part of the reason for the 22% drop in one breath is because the market sentiment has been very bad recently. At this time, the financial report thunderous will be punished more than usual. It is a wake-up call for companies that are about to report financial reports in the future, so we try to hold the stocks in the hands of companies with relatively stable historical financial reports and try to balance our positions as much as possible, to reduce the risk of financial report storms. After all, this quarter In a more dangerous period, back to the point. Let's take a look at Netflix's financial report this time. In the fourth quarter of 2021, Netflix's EPS was $1.33, exceeding analysts' estimates of $0.82, and revenue was just in line with expectations, with $7.71 billion, an increase of 16% year-on-year...

PLTR stock forecast 2025： Cathie Woods increased Palantir stock position

Software company Palantir (PLTR) released the latest quarterly earnings report, which performed very well. After the financial report, Palantir's stock price soared to 14.64% at the highest point. At the same time, the keen Cathie Woods also bought $140 million in Palantir stock. I won't talk about Palantir's specific business. If you don't know much about it, you can go back to my previous article. Let's talk back to the financial report. Benefiting from the benefits of the US government’s contract renewal, Palantir’s earnings per share and total revenue both beat expectations for this quarter’s earnings report. Among them, earnings per share were $0.04, beating the expected $0.01; total revenue was 376 million, an increase of 49% from the same period last year, slightly higher than the expected $361 million. Although the extent of beating expectations is not very large, the biggest highlight of the financial report is to broaden the business. ...

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