American Stocks
They say that the year of the elections is good for the stock market. Some say that the Presidents push the economy and it pushes the stock market so that when Election Day comes, people think the President is doing a good job.
This is not enough reason to make an investment. But if we put it together with a couple of stocks in a positive trend, we could see some potential.
Merck & Company, Inc.
Merck & Company, Inc. is a pharmaceutical company. Originally, it was from Germany, but the US government expropriated it during World War I. Nowadays, it is ranked as the second company on Fortune Magazine’s list of World’s Most Admired Companies within pharmaceutical companies.
It has announced that the quarterly dividend to be paid on April 7, 2020 will be $0.61 per share.
If we include dividends on the stock price, it had its historical top on $92.70. After that, it went down to $84.70, touching a very important support area that comes from October 25, 2018, and has been tested and never lost six times including the last.
With a stop loss on $77.75, that would be a 12 percent loss from its current price. One could try it to see if it is able to surpass the historical top and go far beyond. If the American market continues behaving as amazingly well as it is doing now at least until the elections, we think there are good chances for it.
Salesforce.com, Inc.
Salesforce.com, Inc. is a cloud-based software company. Founded in 1999 by Mark Benioff, it is company that is in a very strong raising trend for the long term, although has important corrections from time to time.
It has been on a sideways movement since February 2019 until December 2019 when it broke the resistance at about $167. Now, it is consolidating the last raise, and we think that if it goes close to $175 where its 30-week moving average is, it could be a good option. In that case, the stop loss could be at $155.80 for a potential loss of around 12 percent.
Hopefully, far from that, it can have good behaviour after breaking the sideways movement.
However, if you feel that the elections have something to say about stock prices development, here you must know that the founder of Salesforce.com, and current chairman and co-CEO, supported Hillary Clinton in the previous elections. We do not believe that companies move so intentionally towards the elections. What we do believe is that the overall conditions tend to be artificially improved during these months and that this could help not this, but all the stocks in the U.S. in general.
*Please keep in mind that this is not financial advice. This is just trying to be informative, but could be very wrong. Make your own decisions and consult a financial advisor.
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