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► Investor Survey (help)
Discretionary ETF Funds US ETF Funds AlphaDEX ETF (FXD) Non - US ETF Funds Global Discretionary ETF (RXI) |
Research Report
Discretionary Industry Analysis ► (edit / improve) The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold. The Main Street analysis says a Buy, with SWOT strengths great than weaknesses and SWOT opportunities greater than threats. Trade: Some of the main trade hubs include China, Mexico, Germany and Japan, while the main discretionary commodities include gold, silver, platinum and diamonds. Trading Strategy: The consumer discretionary industry tends to be very sensitive to economic cycles. Look for undervalued discretionary investments during economic recessions when stock prices are low and sell discretionary investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase consumer discretionary investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Investment Impacts (help)
China Country Analysis ► (edit / improve) China (CNY) is a fast growing communist country with the largest population in the world. Currency: China’s currency is moderately undervalued. Purchase price parity shows that China’s currency is approximately 40% undervalued, however, the other three valuation approaches show that China is fairly valued. Investor Survey: China’s economic environment is very unfavorable for long term economic growth due to the lack of economic freedom, government transparency, and the SWOT analysis. Trade: Indonesia, Pakistan, Norway, Singapore, Europe, the US are the top export partners, while the leading industry is industrial goods, usually for export. Commodity: China produces a significant amount of coal for use at home. The use of coal to provide energy leads to other health related problems. SWOT Analysis: The leading Chinese strength is their cheap labor, while the main weaknesses are political risk and corruption. Renewable energy has the opportunity to propel growth, while general pollution and an aging population could slow growth rates. Trading Strategy: An undervalued currency, average investment flow potential and an unfavorable business environment leads to a neutral outlook for Chinese investments.
Mexico Country Analysis ► (edit / improve) Mexico (MXN) has a capitalist economy with a fast growing service and industrial base. Currency: the Mexican currency has moderate potential to increase in value per the purchase price parity and interest rate parity analysis. Investor Survey: the economic environment is moderate for long term economic growth. SWOT weaknesses are significantly greater than SWOT strengths, whereas, opportunities are greater than threats. Trade: The US and Canada are the top trading partners, while the leading exports are in the industrial and agricultural sectors. Commodity: Mexico produces crude oil, corn, propane, silver, pork, oats, and chicken for export. SWOT Analysis: Transportation infrastructure and crime are the leading SWOT weaknesses, while tourism and education are the leading SWOT opportunities. Trading Strategy: An undervalued currency, low investment flow potential and unfavorable business environment lead to neutral or negative outlook for Mexican investments.
Germany Country Analysis ► (edit / improve) Germany (EUR) is the largest economy in Europe and relies on a strong and sophisticated industrial base to drive their exports. Currency: Germany is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. Investor Survey: Germany’s economic environment is favorable for long term economic growth due to high scores on economic freedom, economic diversity, and government transparency. Trade: The UK, France, and USA are the top export partners, while the leading export industry is industrial goods. Commodity: Germany imports many commodities to feed its industrial base: crude oil, coal, copper, aluminum, lead, zinc, and natural gas. SWOT Analysis: The leading German strength is their engineering expertise, while the main weakness is their declining birth rate. Trading Strategy: An overvalued currency, moderate investment flow potential and favorable business environment lead to a slightly positive outlook for German investments.
Japan Country Analysis ► (edit / improve) Japan (JPY), the second largest economy in the world, has an industrial, export oriented economy that benefits from its relationship with the USA and proximity to China. Currency: Japan’s currency (the Yen) is overvalued according to investment flow potential, the purchase price parity, and the interest rate parity. Investor Survey: Japan’s economic environment is moderately favorable for long term economic growth due to high scores on economic freedom and government transparency, but low scores on the SWOT Analysis. Trade: Indonesia, China, Singapore, the EU, Korea, and the US are Japan’s top export partners, while the leading industry is industrial manufacturing. Commodity: Japan imports many products because of its lack of arable land and energy resources. SWOT Analysis: The leading Japanese strength is their education system, while the main weakness is a declining birth rate. A major Japanese threat is the continuation of zombie companies. Trading Strategy: An overvalued currency, low investment flow potential and moderate business environment leads to a negative outlook for Japanese investments.
Commodity Investment Impact
Gold Commodity Analysis ► (edit / improve) Gold is a widely used metal in the jewelry industry. Commodity: Gold is rated a Hold, because gold demanders and suppliers have a low potential to increase in value. Investor Survey: Gold’s long term growth potential is moderately favorable due to high scores on difficulty to expand in the short term and many SWOT analysis strengths. SWOT Analysis: Strength: Gold has a large, diverse growth market; Weakness: If the cost of gold is too high, then consumers might substitute other metals for gold. Opportunity to grow: gold acts as an inflation hedge investment. Threat: volatile prices may decrease the popularity of gold. Trading Strategy: commodity analyses hold rating indicates that gold should stay the same price over the short term. A moderately favorable investor survey means gold may increase in price over the long term.
Silver Commodity Analysis ► (edit / improve) Silver is a precious metal most commonly used in jewelry. Commodity Analysis: Silver is rated a Hold. Silver demanders and suppliers have low potential to increase in value. Investor Survey: Silver’s long term growth potential is very favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: Silver has a limited supply and is widely used; Opportunity to grow: silver’s potential as a gold substitute could increase growth; Threats to growth: high prices for silver could decrease demand and hurt short term growth. Trading Strategy: The commodity analysis hold rating indicates that silver should stay the same price over the short term, whereas a favorable investor survey means silver should increase in price over the long term.
Platinum Commodity Analysis ► (edit / improve) Platinum is a by-product of nickel and copper processing. It’s commonly used to make jewelry and as a catalyst for chemical reactions. Commodity: Platinum is rated a Hold, because both demanders and suppliers have low potential over the short term. Investor Survey: Platinum’s long term growth potential is moderately favorable due to high scores on difficulty to expand short term supply. SWOT Analysis: Strength: Platinum has a limited supply; however, a weakness is platinum’s limited sources. Opportunity to grow: platinum’s ability to be recycled will aid in future growth; Threats to growth: generally poor economic conditions could limit platinum’s growth over the short term. Trading Strategy: The commodity analysis hold rating indicates that platinum should stay the same price over the short term, whereas a moderately favorable investor survey means platinum may increase in price over the long term.
Diamond Commodity Analysis ► (edit / improve) Diamonds are mostly used in jewelry, because the unique design of its cubic crystal structure reflects light. Diamonds also have the highest hardness and thermal conductivity of any bulk material. Commodity: Diamonds are rated a Sell. Diamond demanders have a low potential to increase in value, while diamond suppliers have very low potential to increase in value. Investor Survey: Diamonds have a buy rating on the investor survey, which means their price should increase over the long term. SWOT Analysis: Strength: Diamonds have many industrial uses, because of their unique physical qualities. Trading Strategy: The commodity analysis sell rating indicates that diamonds should decrease in price over the short term, whereas a very favorable investor survey means diamonds should increase in price over the long term.
