The S&P 500 has served up a 7%-plus return through the first six-and-a-half months of the year. That’s remarkably impressive when one considers the depth of geopolitical conflict, the implication of structural under-employment, the October end of quantitative easing (QE3) and the strong possibility of a significant change to the legislative branch this November.
Naturally, some [...] Continue Reading...
Authors Lu Wang and Joseph Ciolli at Bloomberg described the fear of U.S. stocks falling as â€śbubble paranoia.â€ť Yet, if fundamental and technical indicators both suggest that U.S. stock assets are extremely overvalued, is the maladjustment with some investors or with the markets themselves?
The above-mentioned writers explained that U.S. Federal Reserve members believe asset prices [...] Continue Reading...
Government debt around the globe is roughly 40% higher than it was just five-and-a-half years ago. In fact, the majority of “top 10″ economies, including the United States, carry untenable debt burdens of more than 100% debt-to-GDP ratios.
How dangerous are these circumstances? Well, imagine a family that earns $120,000 per year and carries credit card [...] Continue Reading...
According to a study by LPL Financial, the â€śsmart moneyâ€ť may be exiting equities. Hedge funds, institutions, insiders and foreigners were net sellers of stock in June. The net buyers? Individuals and corporations. The brokerage firmâ€™s chief market strategist, Jeffrey Kleintop, further explained that companies buying back shares of their own stock accounted for most [...] Continue Reading...
“The contraction in the first quarter is not reflective of the underlying state of the U.S. economy and the subsequent flow of data points to a significant snap-back in the second quarter,â€ť explained the chief economist at Regions Financial. Keep in mind, Richard Moody, like the overwhelming majority of economic pundits, projected rising interest rates [...] Continue Reading...
Imagine for a moment that you are not familiar with ticker symbols. Now, let me name seven contenders for your investment dollars — assets that simultaneously diversify your portfolio as well as increase your risk-adjusted performance.
Ticker Symbols (Imagine That You Are Unfamiliar With Them)
Approx YTD %
SPDR S&P 500 (SPY)
Cut to the chase, right? [...] Continue Reading...
Many of the word’s most respected economists projected the direction of interest rates at the start of the year. The average assessment? Experts collectively anticipated that the 10-year Treasury bond yield would rise from 3.03% to 3.41% by the end of 2014.
I didn’t see it.
For one thing, the well-being of real estate in a below-trend [...] Continue Reading...
In the history of the NBA Finals, no team had ever come back from a 3-1 deficit. Miami Heat believers explained that records were meant to be broken. And Lebron James asked, “Why not us?”
To the dismay of some basketball fanatics, the San Antonio Spurs mercifully disposed of their inferior competition in the fifth game. [...] Continue Reading...
Technology was the best performing sector in the five years prior to the 2000-2002 stock market bear. The acceleration of dot-com mania created a boom-to-bust scenario that few had ever seen. Yet “tech” actually weakened before other segments of the economy. What’s more, corporate shares of technology companies witnessed far more violent sell-offs than stock [...] Continue Reading...
Chief market technician at MKM Partners, Jonathan Krinsky, is the latest commentator to add perspective on the trouble with U.S. small-cap stocks. He noted that roughly 80% of large-cap S&P 500 components are currently trading above their long-term trendlines (200-day), while only 40% of small-cap Russell 2000 components are above their 200-day moving averages. According [...] Continue Reading...