Animal spirits
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4 Struggling Stocks With “Harmless” Pullbacks
Schaeffers Investment Research· 2025-11-18 16:05
Core Insights - The article draws a parallel between certain stocks and snakes, highlighting that some stocks may appear risky but are actually safe investments, akin to king snakes mimicking coral snakes [1][3]. Stock Analysis - **CRISPR Therapeutics AG (NASDAQ:CRSP)**: The stock has decreased by 21% this quarter and 23% from its annual high of $78.48. However, it has maintained its prior low of around $51 and its 200-day moving average, indicating potential support. The stock only fell 0.7% post-earnings after a narrower-than-expected loss, and its experimental cholesterol treatment shows promise. The 14-day Relative Strength Index (RSI) is at 30, suggesting it may be a good buying opportunity [5]. - **Crocs Inc (NASDAQ:CROX)**: The stock held its prior low of $73, and despite current unattractiveness, there are optimistic signs following earnings with a top-line beat and price-target hikes. Options are affordably priced, making it a potential buy for investors looking for value [7]. - **Palantir Technologies Inc (NASDAQ:PLTR)**: The stock is currently facing challenges, with a middling RSI and support at the 100-day moving average. There are concerns about a potential double top formation, and it is viewed as a target due to AI valuation concerns [9]. - **AppLovin Corp (NASDAQ:APP)**: The stock briefly breached its prior lows at $545 but quickly recovered, indicating chart support. While it is not considered oversold, the 80-day trendline is providing assistance, and $500 was a significant peak earlier in the year [11]. Volatility Insights - All four stocks mentioned have implied volatilities at modest-to-low levels, which is advantageous for options traders looking for stocks experiencing a post-earnings volatility crush [13]. Value Trap Consideration - The article also mentions the concept of value traps, referring to stocks that have performed well but may not have reached their lowest point yet, indicating potential risks for investors [14].
RBI’s regulatory arc for banking can be explained by weak animal spirits in the economy
MINT· 2025-10-27 02:00
Core Insights - The Reserve Bank of India (RBI) is concerned about a slowdown in credit growth and a lack of entrepreneurial spirit in the domestic market, as indicated by a year-on-year non-food credit growth of only 11.2% as of October 3 [1] - The RBI has implemented measures to stimulate credit growth, including relaxing regulations on bank-funded mergers and acquisitions and adjusting risk weights to enable non-bank finance companies (NBFCs) to lend more for infrastructure projects [3][4] - The RBI's strategy has shifted towards welcoming foreign capital in private banks and NBFCs, marking a departure from its previous focus on domestic capital infusion [6][8] Credit Growth Trends - Year-on-year growth in loans to industry was only 6.5%, compared to 10.6% for services and 11.8% for retail borrowers, highlighting a worrying trend in credit deployment [2] - The RBI's recent guidelines aim to create conditions conducive to a revival of credit demand, especially in light of weak credit growth and rising default risks in retail loans [7] Foreign Capital Influx - The RBI has allowed private equity firms to acquire larger stakes in private banks and NBFCs, such as Blackstone's nearly 10% stake in Federal Bank valued at ₹6,200 crore [5] - This openness to foreign investment is seen as a strategy to mitigate risks associated with local investors' reluctance to engage in banking opportunities [8] Economic Growth Measures - The RBI's latest measures signal that softer interest rates alone may not be sufficient to accelerate economic growth, prompting the government to introduce a tax stimulus [9] - Addressing deep deficiencies on the demand side requires solutions that significantly increase household incomes to stimulate economic activity [10]