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What you need to know before investing in the stock market

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investing in the stock market

The stock market is a place where people can invest their money in order to make more money. People are worried about the stock market because it has been incredibly volatile recently.

For someone not educated on the markets, this can be a scary thing.

If you’re one of those people, here are some important information you need to know before investing.

What is supply and demand, and how do they work together?
Supply and demand are two of the most important concepts in business.

Supply is the amount of a product that is available for purchase, while demand is the amount of product that buyers are willing to purchase. When these two concepts meet, it creates what is known as market equilibrium.

Market equilibrium happens when the amount of a product that buyers are willing to purchase equals the amount of a product that businesses are able to produce. At this point, supply meets demand and prices will usually stay relatively stable.

However, when there is a surplus or shortage in the market, there may be price fluctuations. For example, if the demand for an item suddenly increases but there isn’t enough of the item to meet this demand, businesses may raise prices in order to make more profit.

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On the other hand, if there is too much of an item and not enough buyers, businesses may lower prices in order to sell their product.

Supply and demand are two of the most important concepts that you need to understand before investing in the stock market.

Understanding these concepts will allow you to make smart investment choices that are in line with the fluctuations of supply and demand, which can ultimately lead to greater profits.

So if you’re ready to start investing, make sure you study up on supply and demand first!

Why are supply and demand so important in business?
In essence, businesses are in the business of exchanging goods and services based on the principle of supply and demand.

When there is more demand for a product than what’s available, the price of that product goes up. And when there is more supply than demand, the price goes down.

It’s important for businesses to stay ahead of trends and changes in consumer behavior to ensure that their products remain popular and profitable.

As a result, businesses need to continually monitor the stock market.

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And if you’re thinking of buying shares in one of these companies, it’s important to understand what the stock market is and how it works before you make any investments.

Here are some key things to keep in mind:
1. Stocks can fluctuate wildly from day to day—or even hour to hour.
The stock market is notoriously volatile, and prices can change rapidly. For example, shares of Apple Inc. (AAPL) fell sharply in after-hours trading on Thursday after the company announced it would miss revenue targets for the first time in more than a decade.

2. You can buy shares in a company directly from the company itself.
Many smaller companies don’t have their stocks listed on a stock exchange, so you may need to buy them directly from the company itself. You can usually do this by calling or emailing the investor relations department and asking for more information about how to purchase shares of that business.

3. You can also buy shares through a broker.
If you want to buy shares of a company that is publicly traded on a stock exchange, you’ll need to do so through a broker. A broker is someone who buys and sells stocks on behalf of investors. When you use a broker, you’ll typically have to pay a commission each time you place a trade.

4. Shares are bought and sold through bidding processes on the stock market.
When it comes to buying and selling shares, you’ll typically be submitting bids for other investors to match—and if your bid is higher than another bidder’s offer, then your transaction will go through at that price.

5. It’s important to do your research before making any investments.
Before you decide to buy shares in a company, be sure that you have done your research and understand exactly what the investment is and how risky it may be. You should also consider whether there are other, more stable options for investing your money that could bring you greater returns over the long term.

How can you use supply and demand to your advantage in the stock market or in your own business ventures?
In order to use supply and demand to your advantage in the stock market, you need to be able to understand what is happening in the market and how it is affecting prices.

You also need to have a plan for what you will do when prices move in the direction you don’t want them to go. For example, if you think prices are going to fall, you might want to sell some of your stocks or invest in defensive investments.

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If you’re worried about the stock market, there are a few things you can do to protect your money. First, make sure you diversify your portfolio. This means investing in different types of assets, such as stocks, bonds, and real estate. This can help reduce your risk if one of your investments loses value.

Another important thing to consider is when you invest in the stock market. The best time to buy stocks is either at the beginning of a new bull market or immediately after a big market crash, when prices are low and expected to rebound quickly.

For example, if you invested in the stock market right before the dot-com bubble burst in 2000, you would have lost a lot of money. However, if you waited until after the crash, you would have made money as prices rebounded.

You can also protect your money by investing in stocks that pay dividends. Dividends are payments that companies make to shareholders based on how much stock they own. These payments can help balance out any losses you might incur, as well as provide a steady stream of income over time.

In addition to these strategies, it’s also important to remain calm and not make rash decisions when the market is volatile. Remember that the market goes through ups and downs all the time, and that past performance is not necessarily an indicator of future performance.

By staying educated about the stock market and following a well-thought out investment strategy, you can help protect yourself from any big losses in the stock market.

Are there any risks associated with supply and demand, and how can you avoid them?
The stock market is a risky investment, and it can be easy to lose money if you’re not careful. One thing to keep in mind is the relationship between supply and demand. When there’s more demand for a stock than there is supply, the price goes up.
This is known as a bull market.

When there’s more supply than there is demand, the price goes down.

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This is known as a bear market.

To minimize your risk in the stock market, you should keep an eye on supply and demand trends, and only invest your money when there’s a good chance of a bull market. You can also research new companies to see if they’re likely to be successful.

If you’re not comfortable with your research skills, consider hiring a financial advisor to do it for you.

It’s also important that you diversify your investments, meaning that you should have money in different types of stocks and funds. You can buy individual stocks from companies or invest in mutual funds, which allow you to pool your money with other investors to purchase a larger number of stocks.

Finally, make sure that you’re using the right tools to keep track of your investments. There are many investment tracking apps and websites available that can help you monitor your money and make smart decisions when it comes time to sell or buy.

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One Industry Is Earning Historic Profits As China’s Economy Slows. Testing Covid

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Covid

The Chinese government’s zero-Covid strategy of endless testing and lockdowns has been devastating to the country’s economy and has had a significant impact on company revenues, but it has been a boon for test manufacturers.
Twelve of the most successful COVID testing companies in China have lately reported enormous leaps in both their revenues and their net profits for the first six months of this year.
Andon Health, a company that distributes Covid test kits in both the domestic and international markets, announced that its net profit in the first half of 2022 surged by 27,728%, reaching a total of 15.24 billion yuan ($2.2 billion). It was the highest growth rate achieved by any publicly traded corporation operating in mainland China.

During this time, the company’s revenue increased by 3,989%.

The company not only benefits from China’s aggressive testing campaign at home, but also from the huge demand in the United States, as its iHealth Lab had recently won US government contracts for supplying antigen rapid tests. China’s aggressive testing campaign at home has helped the company tremendously.
Because of the robust demand in the global Covid testing market, the net income of Assure Tech, a diagnostic company based in Hangzhou, increased by 1,324%.
Other manufacturers of tests reported gains in net profit for the first half of the year that ranged from 55% to 376% higher than the previous year.

The Chinese economy has been severely harmed as a result of the never-ending Covid testings, the back-and-forth government-enforced lockdowns, and the border restrictions. The increase in GDP during the second quarter was only 0.4%, making it the worst pace in almost two years. The majority of the world’s largest investment banks have reduced their full-year growth projections for China to 3% or less, which is far less than the stated target of 5.5% that the government established earlier this year.
In addition to this, Chinese businesses have experienced one of the worst earnings recessions in their history. More than half of the 4,800 firms that are listed in Shanghai, Shenzhen, and Beijing reported a decrease in their net profit for the first half of the year. This is almost as bad as the beginning of 2020, when the majority of companies reported their worst earnings season ever.

But diagnostic companies are one of the biggest moneymakers during the pandemic. They are benefiting from the enormous demand for testing as Beijing maintains its zero-Covid policy, which involves forced quarantines, mass mandatory testings, and snap lockdowns. This policy has resulted in an enormous demand for testing.
According to the government, 11.5 billion tests have been carried out in China as of April 2022, commencing when the epidemic first appeared and continuing until that month.
It is possible that this number has greatly increased since then, as analysts working for Soochow Securities recently calculated that 10.8 billion tests had been carried out during the three months spanning April, May, and June.
The costs could end up being a significant burden on the finances of the Chinese government, which have already taken a beating due to the decline in property sales. In the month of May, officials in Beijing made it quite apparent that the costs for routine Covid testing were to be borne by the provincial and city governments.

According to a prediction made by Goldman Sachs earlier this year, the direct cost of conducting Covid tests could reach a total of 200 billion yuan ($30.1 billion) from May until the end of the year if it is assumed that large cities in China, which are home to thirty percent of the country’s population, will perform the tests twice a week.
According to Goldman Sachs, the figure may increase even further if the remaining 70 percent of the population is tested as well as if the costs of putting up testing facilities and quarantine centers are taken into account.

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Asia’s Video Game Giants Are Developing New Formats And Markets

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Video Game

Sony, NetEase, and Tencent, Asia’s largest video game developers, continue their purchase and investment sprees as they push into new forms and, in the case of the Chinese giants, expand internationally to alleviate harsher regulation at home.

Each company’s strategy differs.

NetEase bought French game developer Quantic Dream last week, establishing its first European studio. NetEase has Japanese and U.S. gaming studios.

Tencent, which has invested in smaller gaming studios worldwide, bought a share in FromSoftware. Sony invested alongside Tencent.

Sony bought Helsinki and Berlin’s Savage Game Studios last week.

Recent mergers and acquisitions in gaming starting off 2022. In January, Microsoft offered $68.7 billion for Activision Blizzard. Soon later, Sony announced plans to buy Bungie for $3.6 billion.

Three Asian gaming companies have diverse M&A objectives.
Sony’s PlayStation has reigned for years.
Console gaming’s business model has altered. It’s not enough to sell games and hardware. It’s about milking income from games through continuous updates and subscriptions.

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Sony’s acquisition of Bungie demonstrates this approach.

“Their goal is to have enough content to motivate users to buy their proprietary hardware, pay a monthly charge for PS Plus, and buy the occasional digital game through the PlayStation Store,” said Tom Wijman, market head for games at research company Newzoo.

“Buying studios is the best way to assure exclusive content for their ecosystem, especially in response to Microsoft’s acquisition spree.”
Sony is expanding beyond consoles. Last week, the Japanese behemoth stated it is putting up a specialized section to handle mobile game production, a relatively new initiative for the corporation.

The mobile video game developer Savage Game Studios was also acquired.

Wijman: Sony is leaving its comfort zone to stay competitive.

Mobile gaming accounts for more than 50% of the gaming market, while consoles account for 27%. Sony wants more market share.

Sony’s acquisitions will boost its IP and game catalog as it expands into mobile gaming.
Tencent/NetEase

Tencent and NetEase face a tougher local market, increasing the importance of their international investments and acquisitions.

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Last year, Chinese censors limited the time under-18s could play online video games and froze new releases. In China, regulators must approve games for release and monetization. In April, approvals resumed.

Covid-19’s reappearance in China and subsequent lockdowns have hampered economic progress. Some of China’s internet heavyweights, including Tencent, had their worst quarter of revenue growth.

Tencent and NetEase have sought development abroad through acquisitions and investments.

Tencent and NetEase built their gaming businesses in China. Wijman said these two companies will speed their global expansion as their home market becomes more controlled.

Tencent owns or invests in Riot Games, developer of League of Legends.

NetEase focuses on purchasing high-profile IP. The Hangzhou-based firm can publish a Star Wars game after acquiring Quantic Dream. NetEase has Harry Potter and Lord of the Rings mobile games.

For the two giants, owning studios behind international major hits in gaming is a critical strategy.

NetEase has been less aggressive than Tencent in deals, although it’s stepped up in the last year.

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Both firms’ investment strategies include console ambitions. NetEase and Tencent grew by focusing on PC and mobile gaming, not consoles, which were outlawed in China until 2014.

Both companies are focusing on console gaming.

This year, NetEase hired a console veteran to oversee its Japanese gaming studio. TiMi Studio, a Tencent-owned developer, opened offices in Montreal and Seattle.

Both firms can gain console IP by acquiring and investing in other gaming studios.

Tighter regulation in China and the search for expansion could drive NetEase and Tencent’s investment and acquisition strategies.

If Chinese government regulation continues to squeeze NetEase and Tencent in their native markets, they may be interested in M&A, Wijman added. “Their global expansion plans just began.”

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Royal Caribbean is Installing SpaceX’s Starlink.

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Starlink

Royal Caribbean, which is a subsidiary of Celebrity Cruises and Silversea Cruises, recently made the announcement that it plans to equip its whole fleet of ships with the satellite internet service provided by SpaceX under the brand name Starlink (via TechCrunch). According to the corporation, the service will make the user’s experience of the internet when they are at sea both quicker and more reliable.

It appears like Royal Caribbean is making rapid progress in deploying Starlink; the company conducted a trial run of the service on one of its ships throughout the course of the summer, and on September 5th, it will formally debut the service, beginning with a ship dubbed the Celebrity Beyond. The business anticipates having the service completely implemented throughout its whole fleet by the beginning of the first quarter of 2023.

The announcement made by Royal Caribbean does not provide any technical details, such as the number of Starlink dishes that its ships would employ or the amount of bandwidth that will be shared among several thousand guests. Nevertheless, the business assures customers that they will have access to streaming services and will be able to engage in video chats.
Starlink Maritime, the internet service provided by SpaceX that is geared specifically at usage on boats, was just released earlier this summer. At the moment, it only covers coastal seas in some sections of North and South America (including the Caribbean), Europe, and the region around Australia and New Zealand; however, SpaceX has stated that it intends to cover the majority of the world’s oceans by the first quarter of 2023.

At the present, SpaceX has a lot of things going on with the Starlink project. Its collaboration with T-Mobile to transmit text messages and phone calls to mobile devices via second-generation satellites, which are scheduled for launch the following year, is perhaps the arrangement that is most readily apparent. Additionally, the company is collaborating with Hawaiian Airlines and the charter carrier JSX to provide in-flight Wi-Fi, which is an amenity that Delta (and most likely other airlines) are also investigating. A version of Starlink designed for recreational vehicles (RVs) was just released by the business, which is good news for those of us who live on land.

According to a more recent report, the cruise sector has been having a difficult time recuperating from the pandemic since it began. Cruise lines, like many other types of businesses, have struggled with staffing shortages, which has forced some of them to cancel voyages entirely. As financial authorities such as the Chair of the Federal Reserve, Jerome Powell, warn that efforts to combat inflation will “bring some pain to households and businesses,” another question that arises is whether or not people will continue to spend money on luxuries such as cruises in the face of these warnings.

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