It’s all that Wall Street can talk about. Of course, I am referring to the next Federal Reserve rate decision which is due next Wednesday. All of Wall Street will be watching like a hawk on its prey, waiting for any sign that the Fed may ease up on talk about an upbeat economy. The likelihood, though, is that the Fed will continue to remain upbeat while still stressing that rate hikes are distant. For Wall Street, this would be a convenient compromise between optimism and lower rates. But if the Fed starts getting vocal about rates it could give Wall Street the jitters and lead to big profit taking on the big names. Some believe that the Fed will go out of its way to keep expectations of higher rates subdued, and one of those who believe that is a trader named WoodyRoundUp, who spreads his portfolio around Wall Street’s biggest names.
Big Names with Big Hype
Apparently, just as Wall Street is headed into this critical juncture next week, Woody’s strategy or game plan is to allocate into the big names. If positive sentiment around Wall Street continues, this strategy could prove lucrative. If not? Well, that is a different story. Below we concentrate on the big names behind Woody’s portfolio and the story behind them.
Apple– Apple, of course, has piqued investors’ interest recently with the Beats purchase and news of a stellar pipeline which could include the release of the iWatch as well as the new and improved iPhones. What hasn’t been hyped as much but which is still very relevant is the Apple 1-7 stock split which could allow Apple to be included on the Dow Jones Industrial Average.
Yahoo– It may just be an irritating pop-up sales ad for you, but to Yahoo management, Alibaba is their way forward. Alibaba, the online ecommerce company, is on the verge of going public and with Yahoo owning a 24% stake, Yahoo’s future prospects are growing. Currently, Alibaba’s profits are a staggering 48% of revenues and with a successful IPO launch Alibaba could eventually be worth as much as $200 billion, a serious boon for Yahoo investors.
eBay– Once upon a time eBay was the “darling” of the ecommerce world but shares have lost about 17% of their value over the last quarter, attributed generally to possible headwinds. One of those headwinds is the departure of David Marcus, who headed eBay’s payment processing arm, the highly profitable PayPal. PayPal’s revenues essentially account for nearly all of eBay’s growth and supported its stock price and with Marcus leaving for Facebook to oversee its payment-processing operations the longer term implications for PayPal, and thus eBay, are uncertain.
Walmart– Though summer is nearly upon us, it won't be too long before back to school shopping is in full swing and one of the largest retailers opens its doors to a herd of frazzled, cash-laden parents. Yes, we’re talking about Walmart, the bastion of low-prices. Stock-wise, the company remains a perennial favorite for its tried-and-true conservatism and by virtue of the fact that it is investor-friendly, with steadily increasing dividends and a solid dividend yield at 2.48%.
Will Woody Rise to the Skies?
When looking at Woody’s returns two things are immediately clear; First, that WoodyRoundUp, or Woody for short, is really bringing the money home, with a whopping returns of 646% in 6 month. The by-product of that is that Woody is risky. True, some of his returns came from quick trades and copy trades with high risk but this means that while a positive turn can boost Woody’s returns high to the skies a negative event unfolding for the big companies on The Street could very quickly end up with a devastating crash for this interesting trader. Will he get a lift-off to even higher highs or crash? Time will tell.
- Visit WoodyRoundUp’s profile to view his latest trades
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