{"id":102827,"date":"2017-03-03T11:19:05","date_gmt":"2017-03-03T16:19:05","guid":{"rendered":"http:\/\/countingpips.com\/?p=102827"},"modified":"2017-03-03T06:19:31","modified_gmt":"2017-03-03T11:19:31","slug":"friday-charts-boom-and-bust-ipos-artificial-intelligence-and-an-ominous-divergence","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/friday-charts-boom-and-bust-ipos-artificial-intelligence-and-an-ominous-divergence\/","title":{"rendered":"Friday Charts: Boom and Bust IPOs, Artificial Intelligence and an Ominous Divergence"},"content":{"rendered":"
March 3, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Friday<\/p>\n

If you\u2019re new to the Wall Street Daily <\/i>Nation, here\u2019s the rundown\u2026<\/p>\n

Each Friday, I embrace the adage that \u201ca picture is worth a thousand words\u201d and hand-select compelling graphics to put important investment news into perspective.<\/p>\n

All it takes is a quick glance and you\u2019ll be up to speed.<\/p>\n

This week, I\u2019m dishing on tech IPOs, artificial intelligence and a rare and potentially ominous divergence between stocks and bonds.<\/p>\n

Hot or Not<\/h3>\n

Snap (SNAP) is officially out of the gates!<\/p>

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The company behind popular messaging app Snapchat priced its IPO on Wednesday and began trading yesterday.<\/p>\n

As Reuters reports, \u201cInvestors set aside concerns about its lack of profits and voting rights for a piece of the hottest tech IPO in years.\u201d<\/p>\n

Silly rabbits! As I previously warned, Snap<\/strong><\/a> is hardly a \u201cfist-pounding buy.\u201d<\/p>\n

And let\u2019s get real, Reuters. One day of trading is hardly long enough to characterize Snap as the \u201chottest\u201d IPO in years. It takes months of trading to make that determination.<\/p>\n

And the long-term performance of tech IPOs is a mixed bag, at best.<\/p>\n

You\u2019ll notice the most hyped offerings tend to fare the worst.<\/p>\n

\"stock<\/p>\n

(Yes, we\u2019ve warned against most of them, including Twitter, Fitbit, Groupon<\/b><\/a> and Zynga<\/b><\/a>.)<\/b><\/p>\n

You\u2019ll notice Facebook (FB) tops the list. But its performance is deceiving.<\/p>\n

After pricing at $38 per share in May 2012, shares stumbled out of the gates \u2014 dropping as much as 54% in the first three months or so.<\/p>\n

Obviously, shares eventually recovered. But it took an eternity. Almost 15 months passed before IPO investors broke even on their \u201csure thing\u201d investment.<\/p>\n

In other words, the smart money isn\u2019t always that smart.<\/p>\n

From Dumb Money to Smart Machines<\/h3>\n

When it comes to finding the next big technology trends, we scour patent filings, monitor venture capital financing data and attend key industry trade shows \u2014 among a litany of other things.<\/p>\n

Sometimes, though, the next big trend is hiding in plain sight. That is, in companies\u2019 quarterly reports.<\/p>\n

When every company is talking about the same thing, it\u2019s likely a key technology focus for the coming quarters and years. And right now executives can\u2019t keep their mouths shut about artificial intelligence. Take a look!<\/p>\n

\"Mentions<\/p>\n

If you\u2019re looking for a pure-play way to invest in artificial intelligence, consider a no-risk trial subscription to our premium advisory, True Alpha<\/strong><\/a><\/i>.<\/p>\n

We just recommended a tiny company at the forefront of this technological transformation. Shares are already on the move, up by double digits since our recommendation. But it\u2019s not too late. Click here for more details on how to join.<\/p>\n

Forget Stocks, Look at Bonds<\/h3>\n

Stocks can\u2019t be stopped!<\/p>\n

Case in point: The Dow recently capped off its longest consecutive-day winning streak since 1987.<\/p>\n

Interestingly enough, though, investors have recently started buying bonds, too. And that could foreshadow trouble ahead.<\/p>\n

As you can see in the chart, stock prices and bond yields, which rise when investors sell bonds, were moving in lock step. But now they\u2019re diverging, indicating that some investors are starting to question how quickly and\/or significantly the economic promises and policies of President Trump will have a real-world impact.<\/p>\n

\"stocks<\/p>\n

Then again, it could also be a symptom of investors doubting that stocks can keep surging indefinitely. Even I\u2019ll concede that the current bull market has defied all expectations.<\/p>\n

But if that\u2019s the only<\/i> reason investors are rotating into bonds, they\u2019re making a dangerous bet.<\/p>\n

After all, in the famous words attributed to John Maynard Keynes, \u201cThe market can stay irrational longer than you can stay solvent.\u201d<\/p>\n

In other words, don\u2019t try to fight the tape or you might not live to fight another day.<\/p>\n

Time will tell who\u2019s right (and solvent). It goes without saying that we\u2019ll keep monitoring this divergence for insights on where stocks might be headed next.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese
\nInvestment Director, Wall Street Daily<\/i><\/p>\n

The post Friday Charts: Boom and Bust IPOs, Artificial Intelligence and an Ominous Divergence<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com If you\u2019re new to the Wall Street Daily Nation, here\u2019s the rundown\u2026 Each Friday, I embrace the adage that \u201ca picture is worth a thousand words\u201d and hand-select compelling graphics to put important investment news into perspective. All it takes is a quick glance and you\u2019ll be up to speed. This week, I\u2019m […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-102827","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=102827"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102827\/revisions"}],"predecessor-version":[{"id":102832,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102827\/revisions\/102832"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=102827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=102827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=102827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}