How sound a stock is Audioboom?6 Jun 2024 15:02
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This podcast distributor looks to be at the start of an uptrend, and the fundamentals are supportive, says Michael Taylor
The market is certainly hotting up despite the uncertainty of the election. The televised debate on 4 June passed without either side landing any knockouts, with many phrases repeated (one 10 times) and exaggerated sighs representing more of a pantomime than a serious discussion. When the choice is between these two court jesters then the only loser is Britain. And with Mr Farage re-entering the scene it looks like comedy value will only increase. Certainly, both parties have upped their meme game – a game Labour appears to be winning at the moment. But do eyeballs translate into votes? Potentially, yes. Unfortunately, if lies are repeated often enough, they become believable. This is known as the ‘illusory truth effect’, where, when we are repeatedly exposed to false information often enough, we come to believe it to be true.
In any case, the market has shrugged off the election for now. But if we have learned anything about polls it’s that they can’t be relied upon, as we saw with Brexit and Trump. We also can’t rely on how the market may react to these, as the S&P 500 often fell when Trump posted gains. Yet the market went up on Trump’s election as the narrative shifted to what he would do for markets, rather than the worry priced in pre-election.
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