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Is now the best time to invest in stocks?

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FXTM clients can now access the largest stock markets in the world and invest directly in major company stocks. The international, award-winning broker recently added stock trading to its growing list of trading options, offering the stock exchange’s most popular stocks including Apple, Alphabet (Google) and Facebook. FXTM clients can trade the stock exchange with the premium FXTM Pro account and utilise its powerful trading conditions.

In November, the stock market has been dominating headlines, with both falling technology stocks and the G20 Summit shaking the markets. But what does this mean for traders? In this article, FXTM’s Global Head of Marking Nandik Barbhaiya takes a look at these recent developments, and outlines why now might be a good time for traders to start investing in stocks.

FAANG stock turmoil

The NASDAQ index contains the largest non-finance company stocks. This includes the market’s five most popular stocks, understood under the acronym FAANG – Facebook, Apple, Amazon, Netflix and Alphabet (Google’s parent company). These stocks are known as ‘growth stocks’, meaning that their value is expected to increase over time due to the persistent need for technology and technological developments – including machine learning and cloud computing. FAANG stocks are worth an estimated value of 3.015 trillion dollars as of March 2018.

At the start of November, FAANG stocks experienced a monumental and unexpected fall. On the 1st of November Apple released the foreboding news that it would no longer disclose the unit sales of its iPhones, iPads and Macs. A day later, Apple stocks exhibited their largest drop since 2014, falling a huge 6.6 per cent in just one day.

Apple was not the only tech giant to suddenly hit turbulence. As trading opened the following Monday, losses spread across all five FAANG stocks. On Tuesday the 20th November, Wall Street erased stocks’ gains for the year. Facebook, Amazon, Netflix, Apple and Alphabet lost over one trillion dollars from previous 52-week highs. Overall, the NASDAQ index experienced its worst quarterly performance for a decade, losing 12 per cent. The Dow Jones Industrial Average plummeted more than 2 per cent.

However, on the 26th November the six-week long fall started to reverse. FAANG stocks, excluding Netflix, rose 1 per cent. Apple stocks rose to $165.48, Alphabet exited the bear market, and Facebook grew to $144.06.

G20 Summit

The G20 Summit was a pivotal occasion for the stock market. The world’s 20 largest economy heads met in Buenos Aires on the 30th of November and the 1st of December for a summit which brought more turmoil into the markets.

The main focus following the meeting was on the trade truce between US President Donald Trump and Chinese Premier Xi Jinping. It was agreed that the US will not raise tariffs on $200 billion worth of Chinese goods on January 1st as planned. Instead, a 90-day truce will take place to improve relations. The US previously threatened to impose a 10 per cent tariff on iPhones imported from China, so this truce provided much-needed positive news for Apple stocks. In response, they rose 3.49 per cent. FAANG stocks enjoyed similar gains: Amazon grew 4.86 per cent, Alphabet 1.1 per cent, Netflix 1.46 per cent and Facebook 0.34 per cent. Alibaba stocks began December higher, but quickly showed a reversal. However, without the additional threat of further tariffs on the US listed Chinese stock, Alibaba is expected to make a recovery in the coming months.

Stock Trading with FXTM

The volatility arising from the FAANG turnaround and G20 Summit may provide a wealth of potential investment opportunities for traders. With direct access to the NYSE and NASDAQ exchanges, FXTM’s investors can access FAANG stocks, and many more company shares including:

  • Apple
  • Amazon
  • Microsoft
  • Alphabet
  • Alibaba Group
  • JP Morgan Chase
  • ExxonMobil Corporation

Stock trading is available exclusively on the FXTM Pro account for the MetaTrader 5 platform, which is equipped with all the tools traders need to maximise on investment opportunities. Investors can enjoy tight spreads, super-fast market execution, no requotes, and multiple lot sizes.

Ready to start trading the stock market? Learn more about this exciting new product offering by visiting FXTM today. Only available for clients under FT Global.

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 90% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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