Time to buy or need more time to confirm momentum?
Bullish sentiment extended from Thursday's U.S. markets to Friday's Asian markets, citing weaker-than-expected U.S. CPI data and China's recent easing of pandemic curbs.
Headline U.S. inflation was at 7.7%, the lowest since January, before Russia's war on Ukraine pushed up commodity prices. More importantly for the Fed, core measures excluding food and energy slowed more than expected.
Core CPI rose 0.3 percent from the previous month — well below the 0.6 percent recorded in September and the 0.5 percent increase forecast by economists.
Still, Thursday's strong rally only partially made up for the big losses in risk assets this year from Fed tightening. The $S&P 500 Index(.SPX.US$ is still down 17% and the $NASDAQ 100 Index(.NDX.US$ is down nearly 30%, the $Hang Seng Index(800000.HK$ is down 25% so far this year, all on track for their worst years since 2008.
Is it time to buy or still need more time to confirm the momentum?
Some investors urged caution. “The market rally today is vastly premature,” said Sonal Desai, chief investment officer at Franklin Templeton Fixed Income. “Markets are so desperately looking for some sign that the Fed is going topivot.”
For investors who still have cash on hand, it may be time to look for opportunities worth investing in. After all, there is no opportunity without risk, and a bear market is a season for sowing seeds, so it's best to prepare in advance.
Compared with U.S. stocks, Chinese concept stocks listed on U.S. and Hong Kong stocks have shrunk deeper due to geopolitical risks, which may imply more room for a potential rebound.
You might like this:
You might like this:
How to invest in HK stocks on moomoo?
What are the opportunities and risks with China concepts stocks?
Good tools can help us reduce risk or limit losses and better identify investment opportunities. Let's see how moomoo can enhance your stock-picking skills.
What are the opportunities and risks with China concepts stocks?
Good tools can help us reduce risk or limit losses and better identify investment opportunities. Let's see how moomoo can enhance your stock-picking skills.
How to identify a better entry point?
Buying the dip is a common strategy, but its abuse in trading should be avoided. Generally, two scenarios provide a suitable entry point for buying.
1. The market has undergone a sharp and sufficient correction.
Once the market has squeezed out the bubble and digested high valuations, it's time to look for quality companies that are worth investing in.
Stable and growing earnings, high return on equity (ROE), high dividend yield, and positive cash flows are common indicators of a company’s financial success, indicating that the company could be a good investment.
You might like: Indicators to evaluate the financial success of a company
2. Technical indicators indicate a potential uptrend or prices near a breakout.
Moomoo Learn brings you the most commonly used technical indicators to help you make decisions.
For more suchlike courses, you can go to Learn – Moomoo Tutorials
Last but not least, there is no golden rule or tool for investing; these should only be used as a reference for our investment decisions.
However, when selling is not the only voice in the market, it bodes well for value investors who focus on undervalued opportunities and long-term potential returns.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo Learn Official Account
Easy learning at moomoo Learn.
Let's trade smarter！
20KFollowers
105Following
24KVisitors
Follow
Rebellion : For long term , anytime now is good to buy
Moomoo LearnOP : Is it time to consider adding positions to your portfolio? Share your opinions with mooers
DukeSteven : For long term , yes.
MacBilly : very helpful
bananarama : you all can wait more. I already bought
Jamesim :
romantic Chipmunk_49 : nice
浮生若梦 Rebellion: For long term , anytime now is good to buy
101569646 : with plenty of cash on hand for long term value investing wise can add. just to have more cash standby if drop more.
WISE : trembled beyond what now had a loss in jeeicko geekfihightenesed