During the final quarter of 2018, many important economic and geopolitical events weighed on the major indices. Among the most influential events was the trade war between China and the United States, the Federal Reserve’s decision to raise interest rates, the ongoing Brexit saga and OPEC’s decisions about global oil supply. These events are likely to continue to impact the financial markets this year, and to shape the evolution of the global economy.
The extreme pessimism observed in the markets at the end of 2018 led to oversold conditions that disappeared early this year.The first quarter of 2019 saw most major indices bouncing back. The DJIA rose by 11.81%, the S&P 500 was up by 13.65%, the NASDAQ Composite grew 16.81%, and the Russell 2000 gained 14.58%. Market volatility was also lower during Q1, with the VIX index reaching its lowest level ofthe year so far at the end of March, settling at around 14.
As international equities weren’t able to keep pace with U.S. equity markets, here are 3 of the best American shares to include in your online trading strategy next quarter.
Netflix
While the streaming company has suffered from competition from Disney and Apple’s efforts to develop their own on-demand platforms, nothing has changed in terms of Netflix’s valuation. For many online trading experts,the stock’s recent weakness could be a good opportunity to buy and take advantage of the strength of the industry leader in the entertainment streaming space.
“We see little risk to Netflix growth plans and pricing power against this new offering, given Netflix’s most popular price point should remain lower than the Disney bundle while Netflix is on track to materially outspend Disney on content,” said Scott William Devitt, Managing Director at Stifel, Nicolaus & Company Inc.
After a challenging 2018 for Facebook, in which it was forced to deal with numerous scandals, the companymade a good start to the year – even whilehandling further criticism and extended periods of downtime. Despite negative headlines, the social network is still fundamentallystrong, and its stock price is currently rising, although it is still far below the peak registered in July last year.
It could therefore be a great online trading opportunity, especially if Facebook successfully launches its own cryptocurrency. According to the estimates of Barclays analyst Ross Sandler, the “Facebook Coin” could generate about $19 billion in additional revenue by 2021.
Sandler explained that “any attempt to build out revenue streams outside of advertising, especially those that don’t abuse user privacy, are likely to be well-received by Facebook’s shareholders.”
Canopy Growth Corp
After the recreational use of marijuana was legalized in Canada last October, and with decriminalization in some American states, legal cannabis stocks could represent great online trading opportunities for those who want to diversify their investment portfolios.
Since 2013, Canopy Growth Corp has produced and sold legal recreational and medical marijuana, mostly in Canada. The company has become one of the most important players in the sector, with a growing range of products.
