A group of people who talk a lot about stocks but don't know what they're talking about were wrong again. But we still need to pay attention to them because many people listen to them and do what they say. The economy is mostly based on how much money people spend, and right now they are spending too much, which is good for businesses and the stock market but not good in the long term. Some big companies like Microsoft made more money than expected, and this makes some people happy. Read from source...
- The author starts by admitting that momo gurus are almost always wrong, but then argues that prudent investors should not ignore them. This is a contradiction and an illogical argument, as it implies that ignoring something that is usually incorrect would be wise. A better approach would be to acknowledge the role of momo gurus in shaping public opinion and sentiment, but also emphasize the importance of doing one's own research and analysis based on fundamental data and trends.
- The author uses the term "momo gurus" without defining it or providing any examples. This creates a vague and subjective impression of who these momo gurus are and what they advocate for. A more precise and objective definition would be helpful, as well as some evidence of their performance and claims.
- The author cites personal income and personal spending data as key indicators of the health of the economy and the stock market. However, this is a simplistic and incomplete view, as it does not account for other factors such as inflation, debt, savings, investments, productivity, innovation, global trade, etc. A more holistic and nuanced analysis would be needed to capture the complexity and dynamicity of the economic and market conditions.
- The author reports on the earnings of some major companies, but does not provide any context or comparison for their performance. For example, how do these earnings compare to the same period last year, to the consensus estimates, to the industry averages, etc.? How do these earnings reflect the current and future prospects of these companies in their respective markets and sectors? A more detailed and critical evaluation would be useful, as well as some explanation of how these earnings affect the overall market sentiment and direction.
- The author mentions the "Magnificent Seven Money Flows", but does not explain what they are, why they matter, or how they can be measured and interpreted. This is another example of a vague and confusing term that leaves the reader unsure of its relevance and significance. A more clear and informative definition would be helpful, as well as some examples of how these money flows influence the stock prices and volumes of different sectors and companies.
Based on the article and my analysis, I would recommend the following stocks for long-term investment:
1. Microsoft (NASDAQ:MSFT) - MSFT is a solid blue chip stock that has strong fundamentals, diversified revenue streams, and a dominant position in the cloud computing and gaming industries. The recent earnings beat shows that MSFT is still growing despite the pandemic. MSRT is also trading at a reasonable valuation of 28 times forward earnings and offers a dividend yield of 1%.