On Wednesday, 5/8/2013, U.S. stocks recorded gains for a 5th consecutive session. In fact, the S&P 500 logged its 12th gain in 14 trading days, rising 6% since a mid-April hiccup and reaching yet another all-time peak. Equally intriguing, the last week has witnessed a renewed interest in foreign equities. In spite of a deepening recession [...] Continue Reading...
Half of the largest U.S. corporations are missing revenue targets this earnings season. Non-cyclical sectors from health care to consumer staples are beating the pants of economic growth standouts like technology and energy. Trading volume is noticeably larger on down days than on up days. Treasury bonds are notching new 2013 peaks on safe-haven purchasing. [...] Continue Reading...
The relative strength of the primary U.S. benchmarks — the Dow Industrials and the S&P 500 — distorts the true picture for risk assets today. In fact, we do not even need to look closely to see the cracks all along the wall. For example, the most important metal to the world’s economy appears destined for [...] Continue Reading...
For the first time in 2013, investors do not appear to be tripping over themselves to buy every fractional percentage dip. Here on 4/15, the media have blamed the accelerated selling on commodity price depreciation and a disappointing GDP reading (7.7%) out of China. So we’re supposed to believe that a manic Monday where the domestic [...] Continue Reading...
Flare-ups in the euro-zone refuse to disappear entirely. On the heels of a disastrous Italian election and a full-fledged banking crisis in Cyprus, a Portuguese court has ruled that some of the austerity requirements for bailout dollars are discriminatory. Prime Minister Coelho hopes to find a workaround, but alas… securing bailout money in the near [...] Continue Reading...
Over the course of the 4-year bull market, I’ve kept an eye on the percentage of S&P 100 stocks that reside above a long-term 200-day trendline. Market pressures always seemed to develop when the level approached 86%-90%. Similarly, when the 50-day moving average for the S&P 100 reached 85%, you could pretty much count on [...] Continue Reading...
People are feeling better about spending money. Similarly, investors are feeling better about risking it. The problem is, whenever people begin to feel wealthy due to a faulty premise (i.e., the U.S. Federal Reserve can keep buying bonds to depress interest rates without longer-term implications), they may spend more than they have. Others may blindly [...] Continue Reading...
Eighteen months ago, Jim Rogers explained that “everybody is having a wonderful time running the printing presses.” His answer? Protect yourself by owning real assets. In fact, the popular investing guru has publicly denounced equities for years while simultaneously expressing a preference for precious metals and agricultural commodities. Whenever you listen to Mr. Rogers, you may [...] Continue Reading...
Non-cyclical stock sectors (e.g., consumer staples, health care, utilities, etc.) often do well when there are concerns about economic growth. Indeed, exchange-traded funds representing one or more components of the non-cyclical arena have been the key drivers in the broader U.S. market’s run toward all-time records. Nevertheless, it is still a bit surprising that the potential [...] Continue Reading...
My Registered Investment Adviser, Pacific Park Financial, Inc. manages assets for 185 families. And while it is probable that as many as half of my clients have heard something about Cyprus in the last 5 days, we have received a mere 3 inquiries. Is the lack of interest in the island country’s debt crisis due to [...] Continue Reading...
