Underdog Investors

Hey there, investors! Here's a golden opportunity you won't want to miss. Nike, one of the world's top sports brands, has seen its stock drop by 20%. This dip came after they shared their FY 2025 outlook, which was a bit weaker than expected. But don't let that scare you off—let me explain why this is a great time to buy. What Happened with Nike? Nike recently reported solid Q4 FY 2024 results, but their guidance for FY 2025 wasn't as strong as Wall Street had hoped. They expect sales to decline by mid-single digits. This news caused a significant drop in their stock price. But here's the thing: this short-term dip presents a fantastic buying opportunity for us investors. Nike's Strong Foundation Despite the recent sell-off, Nike remains a powerhouse in the sports industry. Their brand strength is unmatched, they have a massive global market presence, and their athlete endorsement strategy is top-notch. These factors make Nike a resilient and attractive inve...

If you've been wondering why your investments have been looking a bit rosier this year, you can thank artificial intelligence (AI). In a stunning turn of events, AI-themed stocks have fueled nearly half of the gains in the MSCI All Country World Index (ACWI) in 2024.  Let's break down how this high-tech trend is shaking up the market and what it means for your portfolio. AI Stocks: The Market's Secret Sauce Artificial intelligence isn’t just making our gadgets smarter; it’s also turbocharging the stock market. So far this year, AI-related stocks have driven almost 50% of the MSCI ACWI's 11% return. That’s right – just a handful of tech companies are making a huge impact! The Big Players: Nvidia and Friends Leading the charge is Nvidia (NVDA), which has contributed almost 3% to the index’s year-to-date return. That’s a hefty chunk for a single stock. Other tech giants like Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), and Apple (AAPL) are also...

The semiconductor industry is buzzing with excitement as Intel Corporation (NASDAQ: INTC) makes big moves to transform itself. Meanwhile, Nvidia Corporation (NASDAQ: NVDA) continues to shine with its popular AI chips.  Let's break down why Intel might be a great investment right now and how it compares to Nvidia. Key Points: Intel’s Big Makeover : Intel is changing its game by becoming a top manufacturer of high-end semiconductors in the U.S. With the government's support, Intel is setting itself up for a bright future. Intel’s Low Price : Compared to its peers, Intel’s stock is a bargain. This low price offers a great opportunity for investors who expect Intel’s earnings to bounce back. Government Backing : The CHIPS and Science Act of 2022 is giving Intel lots of funding and tax breaks. This makes Intel's big investments in U.S. manufacturing less risky and more promising. Future Growth : Intel's strategic investments could lead to big sales and income growth. Analyst...

Last night's debate was nothing short of a political slugfest, with Biden and Trump going toe-to-toe on issues that hit close to home for all of us. From soaring grocery bills to job security, the candidates' economic policies could make a big difference in your daily life. Let’s break down what they said about the economy and how it might impact you. Inflation: The Silent Wallet Killer Biden:  “There was no inflation when I took office because the economy was flat on its back with 15% unemployment. Trump decimated the economy. That's why inflation was low." Trump:  “Biden’s handling of inflation is disastrous. He inherited almost no inflation, but it skyrocketed under his watch because of reckless spending.” Relatable Insight:  Ever wondered why groceries and gas prices keep climbing? Biden says it's because he inherited a broken economy, while Trump argues that Biden’s spending habits are to blame. Who's right? Your budget feels the squeeze either way. The Ec...

Stock Plunge:  Nike shares fall 20%, the biggest drop since 2001. Management Criticism:  CEO Donahoe under fire amid prolonged sales slump. Competitive Pressure:  Rising competition from On, Hoka, and Adidas. Nike Inc.’s management, led by CEO John Donahoe, is under intense scrutiny from Wall Street as a significant sales slump causes the stock to suffer its worst rout in over two decades. Key Takeaways: Revenue Decline:  Nike forecasts mid-single-digit revenue decline for the fiscal year, against investor expectations of growth. Management Credibility:  Analysts question leadership, hinting at potential executive changes. Market Reaction:  Shares dropped up to 20% on Friday, erasing over $27 billion in market value. Waning Demand and Rising Competition Investors are concerned about declining demand for Nike’s sneakers and apparel, compounded by heightened competition from newer brands like On and Hoka, as well as long-time rival Adidas AG. “Management cred...

Summary: Decision:  Supreme Court rules 6-3, authored by Chief Justice Roberts. Impact:  Higher legal bar for obstruction charges in Trump and Jan. 6 cases. Prosecution:  Focus on impairing documents or records. The U.S. Supreme Court on Friday raised the legal threshold for prosecutors pursuing obstruction charges in the federal election subversion case against former President Donald Trump and defendants involved in the Jan. 6 Capitol attack. Narrow Interpretation of Obstruction Statute In a 6-3 decision, Chief Justice John Roberts wrote that prosecutors must demonstrate a defendant "impaired the availability or integrity" of documents or records related to an official proceeding. This ruling overthrows a lower court decision allowing a broader interpretation of the obstruction charge against former police officer Joseph Fischer, directing the lower court to reconsider the matter. Key Takeaways: Higher Bar for Prosecution:  Prosecutors must now show tampering with ...

Key Points: Markets think Trump’s debate win could mean a victory in November. Asian stocks are happy since there wasn’t much anti-China talk. The dollar inched up in Asian markets as investors saw former president Donald Trump as the winner of the first U.S. presidential debate. Bloomberg’s measure of the U.S. dollar rose as much as 0.2% on Friday before calming down, marking a sixth week of gains. President Joe Biden had a rough start in the debate, causing some to worry about his chances in the November election. Key Takeaways: Trump's Promises : Trump promised to add 10% tariffs on imports if he wins in November. This could push up prices, making it less likely for interest rates to be cut and thus supporting the U.S. dollar. Market Response : "Markets likely think today’s debate hints at a Trump win in November,” said Carol Kong, a strategist at Commonwealth Bank of Australia. “Trump’s policies might raise prices and trade tensions, which could help U.S. interest rates an...

Biden's Debate Disaster: A Campaign in Crisis? President Joe Biden's debate performance was nothing short of a train wreck. From coughing fits to repeated stumbles over facts, Biden's shaky showing has set off alarm bells about his age and capability. The Democratic Party is buzzing with chatter about possibly swapping him out for a fresher face on the ticket. Trump Steals the Show Former President Donald Trump brought his A-game, maintaining high energy and delivering relentless attacks. Despite his usual mix of exaggerations and outright falsehoods, Trump managed to stay composed and on point, avoiding the aggressive outbursts that plagued his past debates. This strong performance has solidified his lead, with many undecided voters now leaning his way. Debate Drama: Hot Issues on the Table Abortion : Biden fumbled a prime opportunity, awkwardly shifting to immigration, a topic he struggles with. Economy : Trump hit hard on Afghanistan, the border crisis, and inflation, wh...

In a significant move, Axiata Group Bhd  has completed the acquisition of Airtel Lanka, previously a wholly-owned subsidiary of India’s Bharti Airtel. This acquisition, carried out through Axiata’s 83%-owned subsidiary Dialog, brings Airtel Lanka fully under Dialog's wing. Here's what you need to know: Big Changes in Sri Lanka's Telecom Scene Axiata, Dialog, and Bharti Airtel signed an agreement in April to merge their operations in Sri Lanka. This deal saw Airtel Lanka being absorbed by Dialog through the issuance of 952.7 million shares, representing a 10.355% stake in the expanded Dialog. What Does This Mean for You? For those living in Sri Lanka or using its telecom services, this merger could mean better and more reliable connectivity. By combining their operations, the companies aim to: Reduce Infrastructure Overlap:  This means fewer disruptions and improved service quality as resources are shared more efficiently. Enhance High-Speed Broadband and Voice Services:  ...

Micron Technology (NASDAQ: MU) is gearing up for a big jump in sales from its high bandwidth memory (HBM). The company expects to go from making hundreds of millions in 2024 to billions in 2025. That's like going from saving pennies in your piggy bank to having stacks of cash in a vault. Key Points: Big Revenue Jump:  Micron is looking at a huge increase in HBM sales, predicting billions in 2025. Main Customer:  Nvidia, the big player in AI and graphics, is a major buyer of Micron's HBM3E. New Products:  Micron is working on even better HBM models, HBM4 and HBM4E. Supply and Demand:  There's going to be less DRAM and NAND memory available in 2024, which means Micron can charge more and make better profits. AI Boom:  The rise in AI PCs and smartphones, along with more AI in data centers, is set to drive record revenues. Plus, with Windows 10 support ending, many people will upgrade their PCs in 2025. Government Support:  Micron has a preliminary deal for $6....

Asian shares took a hit today after US tech companies saw a drop in late trading. Meanwhile, the yen stabilized following a significant slide on Wednesday, which led to speculation about possible intervention by officials. Market Performance Stocks in Japan, Australia, and China declined, with the MSCI Asia Pacific index heading for its first loss in three days. US equity futures also slipped as tech giant Micron Technology’s poor sales outlook affected the market. The yen saw a slight recovery after falling 0.7% the previous session, hitting its weakest point since 1986. Overall, the yen has lost over 12% against the dollar this year. Currency and Bond Markets An emerging-market currency gauge dropped to its lowest in two months, and Asian currencies fell to levels last seen in 2022. Treasuries continued to decline amid concerns that upcoming US PCE data will show persistent inflation. Andrew Brenner from NatAlliance Securities noted, "It’s all about the Fed — higher for longer i...

US banks are doing well, even though they faced tougher challenges this year. The Federal Reserve's annual "stress test" showed that the biggest banks have enough money to survive a severe economic downturn. What is the Stress Test? Think of the stress test like a check-up for banks. The Federal Reserve looks at how well banks would do if the economy got really bad. This year, they imagined a situation where unemployment goes up, the stock market gets crazy, and the housing market crashes. Even in this tough scenario, the banks still had enough money to keep lending to people and businesses. Key Findings The Fed found that 31 big banks would be okay even in a severe economic crisis. They have a good amount of high-quality capital, which means they have money set aside for emergencies. The lowest level of this capital would be 9.9%, which is more than twice the required minimum. What's Next for the Banks? Because the banks did well, they can now announce plans to give ...

Singapore has reclaimed its title as the world's most competitive economy in 2024, jumping from fourth place last year, according to the International Institute for Management Development (IMD). This is the first time since 2020 that Singapore has been ranked number one, beating out Switzerland and Denmark. Why Singapore is Number One IMD looks at 67 countries, gathering data between March and May 2024. They found that Singapore shines in areas like the labor market, technology, and government efficiency. This means that Singapore is a great place to find a job, work in tech, and run a business. However, Singapore didn't do as well in areas like healthcare, the environment, and societal issues. Improvements and Challenges The country has seen improvements in how efficient the government and businesses are, and in attracting and keeping talented workers. Small and medium businesses are also doing better. But not everything is rosy. Singapore’s GDP growth per person has gone down...

China has zoomed ahead in the electric vehicle (EV) race, leaving other countries like the US and Europe in its rearview mirror. But it wasn't just because the government threw money at the problem. There are valuable lessons here for anyone looking to understand how industrial policy can drive success. The Tesla Spark Sure, the Chinese government invested heavily in EVs, seeing them as crucial for the environment and economy. But the real game-changer was Tesla. When Tesla started making cars in China in 2019, it sparked a frenzy. Consumers were thrilled, and a whole new supply chain for EVs sprang up almost overnight. Innovation and Competition Innovation became the name of the game. Scores of EV companies popped up, each trying to outdo the other with the latest designs and tech features. Not all of them survived, but those that did became stronger and more competitive. Today, China’s EV market is known for intense price wars and fierce competition. Lessons from Beijing China’s ...

Nvidia's stock performance this year has been nothing short of remarkable. But the big question remains: can its shares continue to rise? A message from one of our members caught my attention. In essence, the member asked, "My investment in Nvidia (NASDAQ: NVDA) has grown from four digits to six digits. What should I do?" This is a common question many investors face. The Phenomenal Rise of Nvidia Nvidia was one of our stock picks back in September 2018, before The Smart Investor was established. Since then, shares have surged over 1,850%, or more than 19 times their value, excluding dividends. Currently, Nvidia is standing alongside some of the world's largest companies, like Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). But in terms of stock performance, Nvidia is in a league of its own. According to Barron’s, Nvidia's shares rose by a staggering 240% in 2023, far outpacing Microsoft's 58% year-on-year gain and Apple’s 49% increase. This trend continued...

In 2023, the money that people in Singapore took home from their jobs grew, but not as fast as before. The Ministry of Manpower (MOM) released a report showing that the total wage growth was 5.2%, a dip from 6.5% in 2022. This means that while people are still getting raises, they're not as big as they used to be. What’s Happening in the Job Market? Singapore's job market is still strong, but things are cooling off a bit. Even though there are plenty of jobs (the report says there are about two jobs for every person looking for one), the raises aren’t as hefty. Unemployment rates are pretty low, ranging from 1.8% to 3.5% depending on whether you look at everyone or just residents and citizens. This is good news because it means most people who want a job can find one. Who’s Getting Raises? Everyone across different industries saw their wages go up in 2023, but not by a lot. The report points out that people in admin and support services got a bit more because of new wage rules....

Exciting news is on the horizon! Facebook’s parent company, Meta Platforms, and tech giant Apple have been chatting about teaming up on some mind-blowing artificial intelligence (AI) projects. According to the Wall Street Journal (WSJ), these discussions could lead to Meta's cutting-edge AI model being integrated into Apple's new AI system for iPhones. Imagine that! But wait, there’s more! Another AI startup, Anthropic, is also in talks with Apple. They’re discussing how to bring their amazing generative AI technology to Apple’s new AI system, called Apple Intelligence. This is like adding superpowers to your iPhone! Apple, Meta, and Anthropic haven't spilled all the beans yet, so we’ll have to stay tuned for more details. Now, these talks aren’t a done deal just yet. They could still fall through, but if they succeed, it means big things for AI companies. They’d get a chance to reach millions of Apple users, which could mean a lot more business. Some of these companies mig...

Remember the days when the Federal Reserve and central banks were slashing interest rates and “printing money” to boost economies after the global financial crisis? Everyone worried interest rates would stay low forever. The Fed seemed concerned that the world’s largest economy wasn’t moving forward – with close to zero inflation, potential “double-dip” recessions, and consumers not spending as much as before. Fast forward to today, and the script has flipped. Now, markets worry that interest rates will stay high forever. It sounds strange, doesn’t it? Back then, Wall Street cheered any hint of a rate increase. Today, it boos at the mere thought of it. But here’s the big question: Does worrying about interest rates truly matter? Should we even bother? Key Takeaways Focus on What You Can Control: Interest rates are out of our control. Instead, focus on things you can control, like how much you save, the businesses you invest in, and expanding your knowledge. Consistency is Key: Success ...