Check out this week’s stories about influencing markets in 2019, millennials’ investing power and why iPhone sales tanked. What does it all mean for investors? (3:39 min read)

This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.

 

1. Markets in 2019: uncertainty with a side of volatility

Most stock markets around the world suffered major declines in the last few months of 2018.

Some of those losses have been reversed in 2019 so far, but the markets still remain quite volatile.


What does it mean if you’re invested in stocks?

You would be hard-pressed to find an investment chart where historical performance trends up continuously in a straight line – whether you’re buying stocks, property or cryptoassets.

It’s why we (and any successful investor of our time) harp on about investing for the long term, and also view market downturns as potential buying opportunities.

We believe the market may bounce back sharply if some or all of the following occurs:

  • Positive developments in the US and China trade war,
  • Strong future earnings guidance when large companies report their quarterly earnings and;
  • Indications that official US interest rates aren’t going to rise more than expected.

Keep an eye out for any news regarding the above developments.


What does it mean if you’re invested with AtlasTrend?

As long term investors, we’ve come to expect the market corrections which happen along the way.

We’ve been encouraged by the vast majority of our investors who likely feel the same way, having held onto their investments during last quarter’s stock market downturn.

We believe the best way to take advantage of any market decline is to invest regularly and for the long term. This helps you ride out the downturn and buy investments on the cheap.

So, well done to our investors on monthly savings plans! They know trying to time the markets is futile.

2. Millennials are investing (and thinking) differently

Reports from around the world show millennials are increasingly consulting their social conscience before investing.

This extends beyond avoiding companies which negatively impact society (e.g. tobacco) to actively seeking investment opportunities generating a measurable social or environmental impact.

What does this mean if you’re an investor (millennial or otherwise)?

It’s not surprising investing with purpose to deliver impact and generate financial returns is gaining traction.

Millennials already use their purchase power to help create social change. For example, they can vote for change, choose to spend their money with more socially-minded enterprises; and as they accumulate/inherit wealth, also invest in a socially impactful manner.

As the investment power of millennials grows rapidly over the next decade, companies which provide measurable social or environmental impact are likely to attract more capital – just ask the CEO of the world’s largest assest management firm.

So even if you don’t believe in purpose-led investing, it might pay to watch this trend because the amount of capital certain companies and industries are able to attract might shift dramatically.

What does this mean if you’re invested with AtlasTrend?

We genuinely believe investing with purpose is the right thing to do from an investment and social perspective. It is part of the reason why we launched the Clean Disruption Fund, and are also planning to build additional impact-driven investment products.

From the conversations we’ve had and data analysed, we’ve come to realise investing for good financial returns while making the world a better place isn’t a goal limited to millennials.

After all, more and more people probably agree making money and doing good shouldn’t be mutually exclusive

 

3. iPhone sales set back Apple

Apple’s stock price has suffered some large declines over the past few months.

CEO Tim Cook announcing iPhone sales would be lower than previously expected hasn’t helped. In fact, quarterly sales are expected to be down 5% versus the same quarter in the previous year.

What does this mean if you’re invested in Apple?

iPhones are a major part of Apple’s business, accounting for around 60% of Apple’s total revenue.

A decline in iPhone sales in the near-term is a concern for Apple’s shareholders.

Since stock markets value companies on future prospects, the key question is:

What will drive Apple’s growth going forward if the company isn’t able to reverse declining iPhone sales?

What does this mean if you’re invested with AtlasTrend?

Some of AtlasTrend’s managed funds invest in Apple.

While we were also concerned by the recent weak iPhone sales, we continue to believe the long-term prospects of Apple are strong.

With over 1 billion active Apple devices around the world, we think the Apple ecosystem will provide many opportunities to generate increasingly large sources of revenue in addition to selling iPhones.

 

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About Kent Kwan

Kent Kwan is a Co-Founder of AtlasTrend, an investment platform that makes it easy for anyone to learn and invest in trends impacting our world. Kent has over 17 years experience in financial markets including as Chief Investment Officer at Arowana International Limited, and roles at JP Morgan and Macquarie.