🪘 Oil to cause trouble?

Good morning investors! Yesterday was a good day for crypto enthusiasts as Bitcoin briefly crosses the $72,000 mark for the first time since mid-March and Ether soared 8%, whereas the stock market didn’t change much.

Today we cover:

• Oil is getting expensive.

• Gold to fall?

• Problems continue for airlines.

📊 Economy and News 

Be wary of oil prices

Moody’s chief economist Mark Zandi thinks that rising oil prices need attention.

“It’s the most serious threat to the economy,” he told CNN in a phone interview. “Nothing does more damage to the economy more quickly than higher oil prices.”

U.S. oil prices are on the brink of hitting $90 per barrel, with global oil prices around $92 per barrel, driven by worries of escalating conflict in the Middle East. Consequently, gasoline prices have spiked to their highest levels in five months.

Experts believe that there could be political ramifications could occur if gasoline prices spike above $4 per gallon and remain at that level.

US oil prices surged above $87 a barrel late last week for the first time since late October, leaving them up about 21% this year.

Global hits:

• Shanghai-based property giant Shimao Group said that it had received a liquidation petition in yet another instance of creditors taking legal action to reclaim money from troubled developers in the world’s second-largest economy.

• Yellen says she won’t rule out possible tariffs on China’s green exports.

• European close markets higher on busy week for central bank action.

📈 Stocks

S&P 500 5,202.39 (-0.037%)
DJIA 38,892.80 (-0.029%)
NASDAQ 18,100.19 (-0.046%)
BRENT CRUDE 90.58 (-0.01%)
* Prices as of Apr 9th, 12:20 AM UTC

Gold in trouble?

Gold prices yesterday extended their record-breaking run, hitting another all-time high of $2,353 amid robust U.S. economic data.

The yellow metal has repeatedly climbed to all-time highs in recent weeks. However, Bob Parker, senior advisor at trade body International Capital Markets Association, thinks that the shiny metal is "now very vulnerable to a setback.”

Also check: Tesla heads to court after Apple engineer’s family says Autopilot caused his fatal crash .

💵 Personal Finance

Exit strategies in stocks

We often encourage people to invest but it isn’t the most important thing, you also need to know when to stop investing and sell. Also known as taking profits (hopefully) or cutting your losses, or exiting. 

Exit strategies represent the pathways through which investors can realize their returns on investments in stocks and walk away. Let's delve into some of the most common exit strategies:

1. Setting Price Targets: Determine the price at which you plan to sell your stock. This can be based on a specific price target you've set in advance, fundamental analysis, technical analysis, or a combination of these factors. When the stock reaches your target price, consider selling some or all of your holdings. This is the most popular strategy to make money off stocks because prices will go down after a point. It’s all about recognizing and benefitting from that point.

2. Stop-Loss Orders: Implement stop-loss orders to limit potential losses. A stop-loss order is a predefined price at which your stock will automatically be sold if it falls to that level. This strategy helps protect your capital by preventing significant losses in case the stock's price declines. Again, this is important because prices will go down after a point. No stock only goes up. However, as we have mentioned in previous newsletters, stocks will always end up going higher (eventually) unless it’s a dead horse. So, a lot depends on how much time you have in hand.

3. Trailing Stop Orders: A trailing stop order allows you to set a percentage or dollar amount below the current market price. As the stock's price increases, the trailing stop automatically adjusts, locking in profits. If the stock price drops by the specified percentage or dollar amount, the trailing stop order triggers a sale.

4. Time-Based Exit: Set a specific time frame for holding your stocks. For instance, you might decide to hold a stock for one year, and at the end of that period, reevaluate its performance and your investment goals. If the stock hasn't met your expectations, consider selling it. This strategy can, however, be a little risky but it works in situations where you expect a company to pull something off within a specific time. For example, if you are invested in a pharma company that promised to release new drugs by 2027, you can decide to sell in 2028 to benefit from the new drug.

5. Fundamental Analysis: Continuously assess the fundamentals of the company you've invested in. If there are negative changes in the company's financial health, business model, or outlook, it may be a signal to exit your position.

6. Technical Analysis: Use technical indicators and chart patterns to identify potential exit points. Common technical signals include moving average crossovers, overbought or oversold conditions, and trendline breaks. These can help you make informed decisions about when to sell.

A few things to remember:

• Stay diversified. If you pull out of an industry, consider replacing it with something else so your investment remains diversified.

• Conduct regular portfolio reviews to assess the performance of your holdings.

• Be aware of macroeconomic events, news, and market trends that can impact your stocks.

• Revisit your financial goals and life circumstances periodically. If your goals change or you encounter significant life events (e.g., retirement, college expenses, medical bills), your exit strategy for certain stocks may need to be adjusted.

• Factor in tax implications when planning your exit strategy since gains will be taxed.

• Instead of selling all your shares at once, consider gradually scaling out of your position. This approach allows you to capture potential gains while maintaining exposure to any further price appreciation.

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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