As we now move into September we anticipate great things as August will be remembered as the best month in more than 30 years for major US indices such as the S&P 500 and Dow Jones Industrial Average, although the strides that corporation stocks such as Apple and Tesla equally managed to achieve during the same period is as spectacular.
In fact, the cliché that technology is taking over the world has never held as much truth as it does today with tech giants such as Apple, Amazon, Alphabet (Google), Facebook and Microsoft now having an influence on major index exchanges that has reportedly reached ratios around 30%.
But for now, let’s talk about Tesla! It took 7 years for Tesla to reach a market capitalisation of $51bn. Yesterday alone it appreciated by the same amount. The much talked about and widely documented stock split is to thank for that as far as traders are concerned.
Tesla’s share value appreciated by as much as 12% during the first day of trading for the week and regardless of all the concerns that surround over it being severely overvalued, which pessimists validate by pointing to an incline of 1000% in the last one year and 495% as of time of writing in 2020 - it continues to attract further buying support.
71% of NAGA investors remain upbeat on Tesla as seen below.
It is very essential to point out that the surge in valuation for Tesla is not consistent for its industry altogether. Corporation stocks such as Ford, General Motors, Rolls Royce, Toyota and the list goes on are all facing the same coordinated battle that our world economy is facing in 2020 with this challenge clearly standing as how to combat the ongoing pandemic.
Another example of an industry that is regularly encountering a roller-coaster of reactions from investors is the airline industry. Stocks such as IAG and EasyJet are down by a further 2% and 6%, respectively at time of writing today as the number of daily infection rates creep past further grim milestones.
Should nations place further restrictions on its citizens from traveling to other destinations, either through quarantines or a more aggressive threat to close borders we can expect for airline stocks to remain the ones to watch throughout September.
Essentially it is key to remember that for as inflated as world markets have become, and for as many darlings there are in an investor portfolio at the moment that there are also many losers and corporations suffering.
For investors this also means more opportunities for spikes in volatility.
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