The stock market recovery still has hurdles to clear.

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The stock market recovery still has hurdles to clear.
2020 coronavirus stock market crashMain article:
2020 stock market crash
Further information:
2020 Russia–Saudi Arabia oil price war
During the week of February 24-28, 2020, stock markets dropped as the COVID-19 pandemic spread globally. The FTSE 100 dropped 13%, while the DJIA and S&P 500 Index dropped 11-12% in the biggest downward weekly drop since the financial crisis of 2007-2008.
On Monday, March 9, 2020, after the launch of the 2020 Russia–Saudi Arabia oil price war, the FTSE and other major European stock market indices fell by nearly 8%. Asian markets fell sharply and the S&P 500 Index dropped 7.60%.[28] The Italian FTSE MIB fell 2,323.98 points, or 11.17%.[29]
On March 12, 2020, a day after President Donald Trump announced a travel ban from Europe, stock prices again fell sharply. The DJIA declined 9.99% — the largest daily decline since Black Monday (1987) — despite the Federal Reserve announcing it would inject $1.5 trillion into money markets.[30] The S&P 500 and the Nasdaq each dropped by approximately 9.5%. The major European stock market indexes all fell over 10%.[31]
On March 16, 2020, after it became clear that a recession was inevitable, the DJIA dropped 12.93%, or 2,997 points, the largest point drop since Black Monday (1987), surpassing the drop in the prior week, the Nasdaq Composite dropped 12.32%, and the S&P 500 Index dropped 11.98%.[32]
By the end of May 2020, the stock market indices recovered to their levels at the end of February 2020
The Great Recession was a period of marked general decline (recession) observed in national economies globally that occurred between 2007–2009. The scale and timing of the recession varied from country to country (see map).[1][2] At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression.
The causes of the Great Recession include a combination of vulnerabilities that developed in the financial system, along with a series of triggering events that began with the bursting of the United States housing bubble in 2005–2006. When housing prices fell and homeowners began to walk away from their mortgages, the value of mortgage-backed securities held by investment banks declined in 2007–2008, causing several to collapse or be bailed out in September 2008. This 2007–2008 phase was called the subprime mortgage crisis. The combination of banks unable to provide funds to businesses, and homeowners paying down debt rather than borrowing and spending, resulted in the Great Recession that began in the U.S. officially in December 2007 and lasted until June 2009, thus extending over 19 months.[3][4] As with most other recessions, it appears that no known formal theoretical or empirical model was able to accurately predict the advance of this recession, except for minor signals in the sudden rise of forecasted probabilities, which were still well under 50%.[5]
The recession was not felt equally around the world; whereas most of the world's developed economies, particularly in North America, South America and Europe, fell into a severe, sustained recession, many more recently developed economies suffered far less impact, particularly China, India and Poland, whose economies grew substantially during this period – similarly, the highly developed country of Australia was unaffected, having experienced uninterrupted growth since the early 1990s.
The dot-com bubble (also known as the dot-com boom, the tech bubble,and the Internet bubble) was a stock market bubble caused by excessive speculation in Internet-related companies in the late 1990s, a period of massive growth in the use and adoption of the Internet.
Between 1995 and its peak in March 2000, the Nasdaq Composite stock market index rose 400%, only to fall 78% from its peak by October 2002, giving up all its gains during the bubble. During the crash, many online shopping companies, such as Pets.com, Webvan, and Boo.com, as well as several communication companies, such as Worldcom, NorthPoint Communications and Global Crossing, failed and shut down.Some companies, such as Cisco, whose stock declined by 86%,and Qualcomm, lost a large portion of their market capitalization but survived, and others, such as eBay and Amazon.com, also lost value but recovered quickly.
The definitive list of the World's Billionaires, presented by Forbes
The richest people on Earth are not immune to the coronavirus. As the pandemic tightened its grip on Europe and America, global equity markets imploded, tanking many fortunes. As of March 18, when we finalized this list, Forbes counted 2,095 billionaires, 58 fewer than a year ago and 226 fewer than just 12 days earlier, when we initially calculated these net worths. Of the billionaires who remain, 51% are poorer than they were last year. In raw terms, the world’s billionaires are worth $8 trillion, down $700 billion from 2019.
Starting in 1990, businesses in Black Corporate America grossed sales in the billions of dollars. Despite this upward trend, there was not a Black billionaire in U.S. dollars until 2001. The 2000 edition of Forbes 400, which documented individuals who amassed wealth from the tech boom, did not feature any Black individuals. The 400 individuals on the list had a net worth of more than one trillion, which was more than the wealth of all 33 million Black Americans combined.
However, the amount of African Americans earning degrees in business has increased since the 1970s. “The number of African Americans earning bachelor’s degrees in business increased by 316.6% between 1976 and 2008, whereas the number of African Americans earning MBAs increased by 1,399%, from 1,549 to 23,220.”
In 2001, BET (Black Entertainment Network) owner Robert L. Johnson became the first Black billionaire in American dollars, with a net-worth of $1.6 billion. The success of hip hop music and Black music videos stimulated Black Corporate America and launched BET to its success. Prominent Black female entrepreneurs like Oprah Winfrey and Cathy Hughes saw success as they entered the realm of communications. Oprah became the first Black female billionaire in 2003. Cathy Hughes became the first Black American woman to take her company--Radio One–-public on the New York Stock Exchange in 2004.
As of 2019, there are 15 billionaires of full or mixed Black ancestry in the world. Out of the total 2,200 billionaires in the world, less than 0.77% of the U.S. dollar billionaires are Black.
"If I lost everything and had to start from scratch, I would find a problem everybody had and I'd solve it," "Shark Tank" investor Kevin O'Leary tells CNBC Make It.
Indeed, experts from freelancer platforms Fiverr and Upwork recently told CNBC Make It that remote, virtual side hustles doing things from website building to teaching new skills online have spiked amid the pandemic. You can earn anywhere from $395 to $4,095 building a site, according to Fiverr, or from $5 to $100 for lesson, depending on the skill and the teacher’s experience.
“It’s a big business for those who have the guts to get out there and start selling themselves as people who can solve problems,” O’Leary says.
“Believe me, in this world, there is lots of problems to solve.”
Lately, when Kevin O’Leary is asked the question, “Is now a good time to start a business?” he replies, “Yes, it is!” O’Leary says because so many people have time to sit and think, it’s a wonderful time to start a business leveraging the growing popularity of online services.
Kevin O'Leary Of 'Shark Tank' Is Investing In The 'Great Digital Pivot'
Why O’Leary Is Behind Equity Crowdfunding: O’Leary joined the equity crowdfunding platform StartEngine in March as a strategic adviser.
What O’Leary Favors Instead Of REITs: With remote work looking like a long-term shift and commerce moving online, O’Leary said he’s cut his real estate exposure from 30% to 8%.
Instead, the investor said climate-controlled storage and cloud kitchens are two examples of real estate growth areas in 2020.
A cloud kitchen is a cooking facility of about 1,200 square feet that processes orders from platforms like GrubHub Inc (NYSE: GRUB) and is located near areas that are dense with food orders, he said.
“I’ve been working hard on indexing this change and investing in it myself,” said O’Leary, the chairman of O’Shares ETF Investments.
O'Leary On The Digital Pivot: Before the pandemic, a typical American business made 50% of sales at retail, 40% on Amazon.com, Inc. (NASDAQ: AMZN) and 10% direct-to-consumer, he told Benzinga’s Neal Hamilton during a Boot Camp session.
Then came the coronavirus and an economic shift to “America 2.0,” O’Leary said.
“Most of these companies said, ‘I don’t want to give all retail sales to Amazon for one reason,” he said. “Amazon does not give you back your customer. They keep [them].”
That led businesses to start their own websites with platforms like Shopify Inc (NYSE: SHOP) and sell on Facebook, Inc. (NASDAQ: FB) and its Instagram platform, he said.
With direct-to-consumer sales bringing what O’Leary said are almost 100% gross margins, sales can fall by half without impacting free cash flow, he said.
"What I care about [as an investor] is free cash flow."
O’Leary’s Digital Transformation Picks: Shopify — and companies like Alibaba Group Holding Ltd - ADR (NYSE: BABA), Wayfair Inc (NYSE: W), Crowdstrike Holdings Inc (NASDAQ: CRWD), Twilio Inc (NYSE: TWLO), Docusign Inc (NASDAQ: DOCU) and Zoom Video Communications Inc (NASDAQ: ZM) — are included in an O’Shares ETF Investments index, OGIG.
It trades as OSI ETF TR/OSHARES GLB INTERNET GIA (NYSEARCA: OGIG).
“They are the engine of the digital transformation,” O’Leary said of the companies included in the index. “I wanted a way to invest in the digitization of America.”
With Shopify, businesses keep their customers, he said. “Shopify does not aggregate your customer away from you. That’s way more powerful than Amazon.”
In O’Leary’s view, Shopify could eventually compete with Amazon using a different e-commerce model.
Take a look at the stocks making headlines in midday trading.
Here are the stocks making headlines in midday trading.
Goldman Sachs, Morgan Stanley, JPMorgan Chase — Bank stocks moved higher following news that bank regulators were proposing weaker restrictions on some investing activities, including loosening the Volcker Rule. Shares of Goldman Sachs gained 4.6%, while Morgan Stanley and JPMorgan added 3.9% and 3.5%, respectively.
KB Home, Toll Brothers, PulteGroup — Shares of KB Home plunged nearly 12% after the company’s CEO said high unemployment was leading to cancellations and slowing new orders for the homebuilder. Fellow builders Toll Brothers and PulteGroup fell 2.8% and 3.7%, respectively.
Peloton – Shares of the exercise equipment maker jumped 4.5% after Raymond James resumed coverage on the stock with an outperform rating and $65 target, which implies a 13% rally ahead. The firm said the company has a “large market opportunity that is accelerating due to Covid-19,” and expects continued revenue momentum ahead. Shares have more than doubled this year.
Disney — Shares of Disney slid 0.6% after the company said it is delaying the reopening of its California-based theme parks. Disney said its proposed phased opening of its two parks in Anaheim for July 17 would be postponed as state officials will not be issuing theme park reopening guidelines until after July 4. The delay came as Disney workers from Florida have petitioned the company and local government officials to reconsider the reopening of Disney World amid the rising virus cases in the state
Spotify – Shares of the music streaming service gained more than 10% following a price target raise at Goldman Sachs. The firm upped its 12-month target from $205 to $280, which implies a roughly 8% rally ahead. The firm pointed to podcast monetization as one of the factors that can push shares higher.
Accenture — The consulting company’s stock jumped more than 7.7% and hit a new 52-week high after better-than-expected third-quarter results. Accenture reported $1.90 in earnings per share on $10.99 billion in revenue as new bookings increased. Wall Street analysts expected $1.85 in earnings per share and $10.87 billion in revenue, according to Refinitiv.
Ally Financial — The financial stock surged nearly 12% after Ally announced that it was canceling its proposed acquisition of CardWorks. The companies said in a press release that the decision was mutual and a result of the pandemic.
McCormick — Shares of the spice maker gained 3.6% after the company beat expectations for its second quarter. McCormick earned $1.47 in adjusted earnings per share on $1.4 billion in revenue. Analysts expected $1.16 in earnings per share and $1.37 billion in revenue, according to Refinitiv.
Darden Restaurants – Shares of Darden Restaurants popped more than 5% after the parent of Olive Garden and other restaurant chains reported better-than-expected quarterly earnings. Darden said it lost $1.24 per share for its latest quarter, smaller than the loss of $1.65 that analysts were predicting, according to Refinitiv. The company also said 91% of its dining rooms are now open with at least limited capacity.
Carnival, Norwegian Cruise Line, Royal Caribbean Cruises — Shares of cruise lines reversed course later in the day after falling on Thursday morning. Shares of Norwegian Cruise Line closed up 1.8% and shares of Carnival Corp. finished flat. Royal Caribbean rose 0.7%
MGM Resorts, Las Vegas Sands, Wynn Resorts — An uptick in coronavirus cases in the U.S. and abroad pressured casino stocks on Thursday. Shares of MGM Resorts International fell 1.4%. Las Vegas Sands rose 0.1% after trading in negative territory earlier in the session, and Wynn Resorts dropped 2.2%. Nevada is now requiring people to wear masks in public places.
The coronavirus pandemic hit hard in the first half of 2020, prompting a series of extraordinary governmental measures to combat the disease: extreme social lockdowns, economic shutdowns, massive fiscal stimulus and support. The combination has created an unusual market circumstance, with economies in
We’ll start in the food industry, where Post Holdings holds a major portfolio of brands, including such breakfast staples as Raisin Bran and Shredded Wheat. At $6.1 billion in market cap, Post is a giant in its segment, with a secure niche based on quality products and strong branding
1957
Disney Magic Comes to NYSE in IPO Goldman Sachs leads Disney's initial public offering at a share price of US$13.88 on the New York Stock Exchange in 1957.
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Scripophily is the study and collection of stock and bond certificates.
A specialized field of numismatics, scripophily is an area of collecting due to both the inherent beauty of some historical documents as well as the interesting historical context of each document.
Some stock certificates are excellent examples of engraving. Occasionally, an old stock certificate will be found that still has value as a stock in a successor company.
https://en.wikipedia.org/wiki/Scripophily
Forecasting the Future
Trend analysis is the widespread practice of collecting information and attempting to spot a pattern. The strategy used is a mathematical technique that uses historical results to predict future outcome. Coolhunters will often seek out individuals from within their target demographic who are regarded as leaders or trendsetters.
Technology forecasting attempts to predict the future characteristics of useful data machines, procedures or techniques. Researchers create technology forecasts based on past experience and current technological developments.
Futures studies seeks to understand what is likely to continue and what could plausibly change. Part of the discipline thus seeks a systematic and pattern-based understanding of past and present, and to determine the likelihood of future events and trends. Unlike the physical sciences where a narrower, more specified system is studied, futurology concerns a much bigger and more complex world system.
The methodology and knowledge are much less proven as compared to natural science or even social science like sociology and economics. There is a debate as to whether this discipline is an art or science and it is sometimes described by scientists as pseudoscience.