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"It can be estimated that the nervousness in the markets will increase even more" - Walla! Business

2020-10-29T07:41:48.075Z


The sharp declines, the connection between Wall Street and Ahad Ha'am and the impact of the economy on the elections and vice versa. Miri Segal, owner of MS-IR in New York, is following the developments with interest. On the eve of the technology giants' reports, she estimates: "Expectations are very high. It seems we will continue to see realizations."


  • Business

"It can be estimated that the nervousness in the markets will increase"

The sharp declines, the connection between Wall Street and Ahad Ha'am and the impact of the economy on the elections and vice versa.

Miri Segal, owner of MS-IR in New York, is following the developments with interest.

On the eve of the technology giants' reports, she estimates: "Expectations are very high. It seems we will continue to see realizations."

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  • Wall Street

David Rosenthal

Thursday, 29 October 2020, 08:46

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In the video: Trump election week at Nebraska election rally (Photo: Reuters)

"The difference between Wall Street and Main Street has never been so significant. Because of the low interest rates, not only is there an initial public offering like the IPO of the Israeli software company Jay Frog, which raised over half a billion dollars, but you can also see companies raising bonds. Convertible to zero interest.

Just last week, the dual-tech company Nova, which trades in Tel Aviv 35 and Nasdaq, raised $ 175 million at an interest rate of 0. Even last week, nervousness in the markets due to the rise in the number of patients in the US and Europe, "While there was volatility, there were still 21 companies that made an initial public offering just last week, raised close to $ 5.5 billion and there were 8 secondary raises totaling about $ 1 billion."



The spokesperson is Miri Segal, the owner and CEO of MS-IR in New York, which specializes in strategic consulting in the field of investor relations for global technology companies. Financial strength, conference calls, increased stock market trading, analytical coverage and more.

As someone who has been in the field for over 22 years, she has experience in both the Israeli and American capital markets.

She knows the connection between them well.

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"Israel enjoys the incredible output of technology companies."

Miri Segal

"In the Israeli capital market, very important moves are made from the regulatory aspect. The goal is to open the Israeli capital market to investors and foreign banks, to increase marketability and interest in shares and strengthen the Israeli capital market status in the world (due diligence: I work with the authority It can be seen that moves that the Securities Authority has been leading in recent years are indeed bearing fruit, and in the last update of the indices in August, 6 leading technology companies such as Nova and Sapins entered the Tel Aviv 35 index and left the real estate and gas companies index.

This phenomenon proves that Israel also enjoys the incredible return of the technology companies, a phenomenon that certainly makes sense in the capital market in the country given the number of local technology companies.



"The indices of Tel Aviv Tech-Elite and Tel Aviv Technology rose from January to August by more than 30% and reached an all-time high. The latest legislation passed by the Authority on reports of companies in English, in addition to the reports of dual companies already reported in English, "Involvement of foreign investors in the local capital market, if you add to this the fact that the number of prospectuses for an IPO on the Tel Aviv Stock Exchange is at a peak of five years, you will see that there is also an expectation of a booming market in Tel Aviv."

Technology stocks have indeed been revitalized after the initial crisis.

The Federal Reserve poured about $ 3 trillion into the markets and began assisting small businesses.

The FAANG phenomenon (Facebook, Amazon, Apple, Netflix and Google) has evolved to monstrous proportions.

The Nasdaq, which reached a low of less than 7,000 points in March, climbed to 12,000 points in September.

The IPO market has grown stronger.



"July has been the best IPO month in the last decade," says Segal, "companies have raised about $ 60 billion, and at the current rate 2020 is set to be the best IPO year since the 2000s. All this at a time when dozens of companies are going bankrupt including brands Known as Gap and Neumann Marcus, unemployment is peaking at 13% and U.S. GDP has been declining sharply for two consecutive quarters.

'



There seems to be a lot of wishful thinking on the stock market, any announcement that shows little optimism flies the indices.

Is that the impression you get too, or does it make sense for the ups and downs that Wall Street shows?



"I do not think this is an announcement. These are announcements related to vaccine progress, incentives and other grants to the market, and financial results or positive updates from companies that succeed in the challenging period. Each case needs to be examined on its own merits. It can be said that the world is really changing and the culture of remote work, the growing need for information security, digital medicine, increasing use of the cloud and more are all significant changes that will stay with us for many years to come, so companies operating and growing are expected to continue rising Realizations. "

Any president-elect will have to deal with a booming economy.

Trump and Biden (Photo: Reuters)

Tonight after trading, the reports of the four of the FAANG's top five - Google, Amazon, Facebook and Apple - will be published.

Netflix's reports, released about two weeks ago, were disappointing, with the number of new subscribers being a third lower than expected.

What will happen if they too do not live up to expectations?



"You can see that technology companies have risen by tens and some even hundreds of percent since March. When prices rise to new heights, investors' expectations accordingly. To justify such multipliers, a company that simply meets expectations or even slightly misses, 'snatches' very strong from the market. At $ 135 a share, it soared in September to $ 225 even though it reported results that reflect tremendous growth thanks to video game and cloud service sales. "In the markets, it can be estimated that in the coming days we will continue to see realizations. The effects of the macro can not be ignored, such as the increase in the number of patients and the fear that closure could return significantly and widely."



From a realistic point of view, has it been possible to do anything different in the last six months to get the economy in a better position?

What do the Americans say about this? "



" The Americans, as in Israel, are very divided in their opinion according to those who chose it in advance.

The corona crisis, of course, is devouring all the cards and increasing fears of the huge deficit, which has tripled compared to last year and reached $ 3.1 trillion.

This is a deficit that constitutes 15% of GDP, the highest percentage since 1945. "

In five days we will have the culmination of a particularly turbulent election campaign, at the end of which we will know whether Donald Trump has retained his seat, or whether Joe Biden will succeed him.

There is a widespread opinion among investors that Trump is better for the economy in general and the capital market in particular, but this sentiment has blurred over time.

The market appears to have contained a possible choice of Biden.

What can we expect if he is elected?



"As we have seen recently and especially on Wednesday, the market is on hiatus from the beautiful rises due to the uncertainty surrounding the election," Segal analyzes. "This is due to the large number of patients and the approval of financial assistance to the economy." Because a lot of voters voted in the mail and it will take time to count all the votes. I do not want to get into the political side and we have already seen that polls were very wrong in the past, so it is definitely too early to determine who will be the winner. Markets, and may be a catalyst for the market.

In general, there is a consensus that the rising number of patients, especially those hospitalized across the U.S., "and the fear that they will have to close again will delay the rescue of the economy from the crisis, and this is true of any president-elect scenario."



What are the economic achievements that Trump has achieved throughout his term, if any?



"One of the most notable achievements is that throughout the term, unemployment reached an all-time low of 3%. Unfortunately, with the outbreak of the plague, unemployment rose in three months more than in two years of the great recession. From 6 million unemployed in February "Unemployment has reached almost 8%, a decrease compared to previous months (at the peak of the unemployment rate was higher than 14%).



The situation on Wall Street is complex.

The reality cannot be predicted and even the great analysts did not know how to paint the winding path that the stock market has gone through in the last eight months.

We asked for one tip from Converters to finish.



"I do not manage investments, but the main tip is to take advantage of declines and realizations to enter the market precisely when prices are low," she concludes. "It is important to have breathing space, even if after a decline comes another decline. If you believe in the company's business "And the growth potential will remain. It is very important to do homework before investing."

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Source: walla

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