Sometimes, when the chairman of the U.S. Federal Reserve speaks, my diaphragm pushes on my lungs hard enough to inhibit breathing. It’s not that I don’t admire Ben Bernanke on a variety of levels. It’s just hard to believe that a man of remarkable intelligence is serious when he says, “In light of the current [...] Continue Reading...
One of the most prominent names in perma-bear predicting, Nouriel Roubini, just advised that you buy stocks for a period of about 2 years. At that time, the professor expects a global economic depression to rock the world markets. There’s a great deal of irony in hearing “Dr. Doom” discuss riding a stock wave higher through [...] Continue Reading...
On Monday, April 29, the S&P 500 may close at an all-time record peak. Yet very few folks seem to be talking about “selling high, and buying low.” If anything, a number of respectable analysts cheerily predict that any efforts to sell into market strength in May will be met quickly with a steady demand [...] 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...
After the market closes on Tuesday, April 23, the world will turn its attention to the previously untarnished Apple (APPL). Its epic downward spiral from $700 per share to a sub-$400 price is largely responsible for the relative under-performance of Technology ETFs. Below, the Vanguard Information Technology (VGT):S&P 500 price ratio demonstrates the trend. Over the [...] 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...
When you think about it, ultra-low interest rates can be credited with a wide variety of recent occurrences. Real estate became more accessible. Vehicles became more affordable. And higher-yielding stocks and bonds became unavoidable for those who required a return on their life’s savings; that is, CDs and treasuries were not able to provide retirees [...] Continue Reading...
Treasury bonds are rocketing, commodities are reeling and the euro-zone’s economy is contracting. That is hardly the backdrop for continued equity price appreciation. Yet the U.S. stock market has had little resistance in capturing all-time records. Regardless of region, asset classes typically move in the same direction. It follows that one would not expect unabashed buying [...] 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...
I genuinely expected the primary media outlets to spin the 7.6% unemployment rate as cause for celebration. Instead, many finally chose to explain the reality behind employment in America; that is, the number of potential employees in the labor force is at 63.3% — the lowest percentage of workers in the workforce since 1979. Psychologically, it [...] Continue Reading...
