The very nature of stocks, financial markets and investments in one, comes with intrinsic risks packaged alongside. It thus becomes imperative for an investor - be it an amateur or a master, to dive deep into all factors, internal as well as external, to have a sound understanding of the varied nuances of a company’s stock and its anticipated performance in an equity market before delving into the competitive sea of financial investments. To be able to achieve success in stock investments one must try to safeguard themselves as far as possible from all possible uncertainties that may affect the price of a stock, by studying the very factors that may have an impact on them.
Thus, when reckoning of investing in stocks, one must take into serious consideration- any and every probable uncertainty as well as risks involved, be it fundamental / internal factors such as - Price Earnings Ratio, Return on Assets, Systematic Risk, etc. or extraneous factors such as - Inflation, Changes in interest rate, sudden surge in oil price or any other significant Black Swan Event. A Black Swan event can have a deep impact on stock markets and on investment portfolios. In particular, a Black swan event can simply be understood as any major event that is difficult to predict or can be completely unpredictable. These events may occur from time to time and have a huge impact on your stocks and the financial markets at large. There have been some quite a handsome number of global incidents surrounding the Black Swan that have impacted stocks, most recent being the Coronavirus Outbreak and the mayhem it has caused lately in terms of buying, holding or selling of various stocks. Then, who can forget the event that embraced the Swiss National Bank agreeing in January of 2019 to abandon its 3 year-long floors against the Euro. This had a massive impact on the stocks and financial markets. Oil price collapse of 2019 was another popular Black Swan of the year as it had a huge impact on the markets. Yet another most-talked about Black Swan shaking the stocks and markets - top to bottom was the dot-com stock market bubble bursting in the year 2001.
Some of the major Black Swan events having a strong bearing/impact on stocks and markets across the globe include:
- Black Swan Event 2019: Coronavirus Outbreak
The spread of the Coronavirus has been one of the serious threats to the world economy and to financial markets lately, impacting stocks and economies world over. While the markets at large, have witnessed a turmoil, various Supermarket and Healthcare stocks seem to have defied the trends with higher sales witnessed for specific products.
- Black Swan Event 2016: BREXIT
The UK’s departure from the EU was as chaotic and tumultuous as the partnership itself. The global markets fell drastically with the Pound and Euro falling sharply. Here as well, pockets of defensive and dividend-paying stocks have charged higher over the last few years.
- Black Swan Event 2015: Black Monday China
Shanghai stocks plunged heavily on August 24 - A heavy focus on impetuous buying was seen from investors using borrowed money over a period or time and various Chinese companies were seen to have started borrowing cheaply from the banks for investment purposes. This led to taking risks in the market eventually leading to the rate of borrowing exceeding the rate at which the companies in which the funds were invested growing - Ultimately leading to a devastating situation across the market.
- Black Swan Event 2014: Crude Oil Crisis
The beginning of the millennium 2000 had witnessed steady growth not just in the developed economies but even in the developing ones of Asia and Latin America, which in turn resulted in huge demand for commodities. However, price ramifications were surfaced with change in oil demand, supply glut and other factors as seen in 2014.
- Black Swan Event 2009: European Sovereign Debt Crisis
The main explanation for this was the large sums of public debt that nations like- Portugal, Italy, Ireland, Greece and Spainhad accrued and were then facing difficulty paying back.
- Black Swan Event 2008: Global Financial Crisis
Second to the Great Depression that started in September 2008, was the Global Financial Crisis of 2008. This was majorly attributed to the tumbling of the otherwise bloated housing market that was created due to the sub-prime mortgages lent on unreasonable credit that ultimately led to the fall.
- Black Swan Event 2001: Crash of 9/11
While other meltdowns are still thought about as something that could have been mitigated, but the terrorist attack on the twin towers is something no one could have foreseen. With a long closure, the markets reacted as expected. A market cap of over $1.4 trillion was wiped out in under a week and this left a permanent mark in the history of stock markets.
- Black Swan Event 2000: The Dot-Com Crash
This was an example of markets becoming unsustainable as the unrealistic metrics on which the valuations were based came to surface. The misguided investors put in the money in the bubble. Few big tech companies placed sell orders when the market reached its peak, panic started to float around with the market losing over 10% value within weeks.
The key aspect to note is that a downturn also opens the door to different types of opportunities post the short-to-medium- term challenges and any market slump event is generally followed by a recovery phase as seen in the history. The timeframe is though subject to the depth of the impact. The classic case has that been of the banks and associated dividends that recovered within years post the Global Financial Crisis.
With that said, it becomes imperative that an investor ‘thinks it through’ and adopts an inside-out and an outside-in approach to assess and evaluate all possible factors when investing in the stock market to be able to successfully mitigate risks involved. It is ergo difficult to be able to do so with limited resources - be it bandwidth or knowledge of carrying out thorough analysis. This is exactly where Kalkine’s Market Event Research Report comes to the investor’s rescue - to give you the best and latest enriched insights with a Product called “Market Event Research Report”.
In continuation with our philosophy of facilitating investors in making informed and carefully thought-through investment decisions, we present our new product “Market Event Research Report”.
The report is aimed at helping the investors in making the investment decision by following the funnel-approach to study and look at the macro factors such as GDP, inflation and interest rates and then zoom focus further to the industry-specific factors and trends that are affected by a particular event that may have occurred thereby affecting the stocks and the financial markets. After studying them in great detail - sector, industry and company-specific data is analysed for one or more stocks. This report thus, aims to emphasize on the risk and reward pattern that take cues from any market related event (macro and/ or micro in nature) and impact (positively/ negatively) a set of stocks.
Key Aspects - Why should you be looking at this report
1. Market Event Research Report provides anInsight into the Specifics of a Market Event to the investors.
2. It is a One-Stop Guide for an individual to understand the nitty-gritty of a given event and its anticipated impact on the financial markets.
3. The Report highlights the Investment Case by deep diving into the market event that has taken place and how this would impact the companies operating in the industry.
4. The components of the report include essential information and details from the event - with both Macroeconomic and Microeconomic Overview. The report also focuses upon the key aspects which would be helpful in shaping up the industry in near future.
5. It presents an Outlook for both long-term and short-term by making rational assumptions backed by facts. It is imperative to note that the scope of the Market Event Research Report is not restricted to a Black Swan Event or a sector by nature of the event being discussed.
6. By virtue of representation, the report is an info-graphical based product which helps the investors in gaining an in-depth understanding after a market event has been assessed and studied to gauge the possible impacts that one can expect out of it.
Illustrative areas that Kalkine’s Market Event Research Report is aimed at:
- Defensive Stocks amid Market Meltdown: In this context, Kalkine’s Report aims to cover company insights and fundamental/technical analysis with recommendation on one or more stocks that are defensive to the event (like any financial crisis or even change in interest rates etc.) being discussed and can withstand the impact by and large in terms of the price movement and volatility. The selected stocks may emanate from a diverse sector-specific bucket – Utilities, Industrials, Healthcare, REITs and so forth.
- Your Personal Hygiene - Consumer-centric Healthcare and Material Stocks: This category is expected to entail stocks of the companies with businesses relating to hygiene management. The category finds utmost importance amid events relating to health crisis as imposed by Coronavirus Outbreak. This could be related well to certain opportunities like that seen with Zoono Group Ltd (ASX: ZNO), which was up ~1890% in six months. Then, businesses associated with medication home deliveries have gained a lot of traction.
- Gems in Travel & Tourism and Other Pitted Spaces: Any oil price driven event or Black Swan Event (like Coronavirus led crisis) that impacts the Travel & Tourism industry is crucial to be analysed well before you invest in a related stock. Knowing what is a ‘buy and hold’ opportunity would be essential for the overall health of a portfolio when dealing with speculative sectors during a market turmoil.
- Stock Opportunities in Fin-tech space in view of regulatory sandbox: This is expected to elucidate the bright and dark spots when it comes to tech-driven financial stocks including the popular BNPL (Buy now pay later) space.
- Stock Opportunities in well-regulated Aged-care Space: This kind of Market Event Research Report is aimed to touch upon changes that define/re-define regulatory frameworks for aged-care sector and possible opportunities in the space.
It is well-acknowledged that understanding and analysing any given market event- inside out, is a rather difficult and comprehensive task which is never a one-off event but an on-going process. It takes years of experience to gain an in-depth understanding of an industry. We at Kalkine offer comprehensive research solutions to the investors in terms of both quantitative and qualitative parameters. We aim to enable our subscribers to gain in-depth insights about the market events, industry dynamics and prospects which, in turn, will help them in taking long-term favourable investment decisions. We focus on providing unbiased granular research to provide wealth creation ideas to our valuable clients.
At Kalkine, we have a dedicated team of research analysts who have a rich experience in covering various sectors (such as Banking, Health Care, Information Technology, Telecommunication, Energy, etc.). Our team of dedicated researchers is focussed on conducting in-depth analysis of various market events and their impact on a wide spectrum of industry sectors to provide a holistic view with long-term growth and profit perspective. If you are looking for an extensive market-event report, look no further - Kalkine’s Market Event Research Report will cater to all your needs for better investment thesis and insights.
Stay apprised, Invest wise with KALKINE!