Everyone seems to recall the phrase, “irrational exuberance.” The description is most frequently tied to the dot-com frenzy and subsequent bursting of the info-tech bubble at the turn of the century. Yet Fed Chairman Alan Greenspan first uttered the words on December 5, 1996. In fact, it took nearly 4 more years before the stock balloon popped in March of 2000. [...] Continue Reading...
Are you wondering if the market can go significantly higher by year end? Maybe your question should take the U.S. market’s remarkable resilience into account. Specifically, the S&P 500 has not closed in bear market territory. In fact, the large-cap barometer would have to close below 1096 to get there. Yet, with the exception of a few scary moments, the gauge has demonstrated its [...] Continue Reading...
In spite of significant corrective activity in U.S. stock assets… in spite of bears clawing away at a number of foreign stock assets… the most popular company on the planet remains unharmed. In fact, shares of Apple hit a new all-time high on September 20, 2011. Everyone is “gaga” for Apple stock. That includes you, me… even the guy who takes [...] Continue Reading...
The number “88″ means a lot of different things to different people around the world. For some, it expresses the notion that the universe is both infinitely large and infinitely small. Others see it as a message of eternal love. Meanwhile, Chinese culture recognizes “8″ as its luckiest number, with “88″ symbolizing even greater fortunes. However, 8/8 is a rather dismal date for the [...] Continue Reading...
Euro-zone members have yet to come to a meaningful agreement on how to save weaker countries from sovereign debt defaults. Consequently, Germany has been studying the adverse impact that a default by Greece would have on German banks. Meanwhile, CEOs of French financial institutions can be seen on the talk circuit, claiming that banks in France are well-capitalized and [...] Continue Reading...
Historically, it has been relatively rare for the CBOE Volatility Index (VIX) to break “30.” And when it has hit 30 on the upside, the spike typically meant that panic selling was nearing completion. However, the rules of the VIX game changed in 2008. Breaking 30 no longer signified capitulation. In fact, in a more volatile investing world, “30″ may only indicate the beginning of [...] Continue Reading...
On 8/2/11, the same day that President Obama signed a bipartisan bill to raise the debt ceiling, the stock market floor collapsed. Specifically, the S&P 500 closed below its 200-day moving average — a technical trendline for stock buying support. Indeed, the heralded benchmark of U.S. stocks hadn’t finished below its 200-day MA since last September. Equally disconcerting, [...] Continue Reading...
One of the “constant” declarations of the current earnings season? Of those reporting, roughly 3/4 of corporations exceeded profit-per-share estimates. On the other hand, it’s not uncommon for 2/3 to 3/4 of companies to beat lowered expectations; key executives help to create “beatable” numbers. In addition, each of 8 major economic sectors typically have corporations that, historically speaking, raise the earnings-per-share [...] Continue Reading...
Roughly one hour before bond and stock markets closed on Monday, 7/25/11, congressional Democrats expressed that the House Republican debt plan was a “non-starter” in the Senate. Wince! Six hours later, President Obama spoke to the American people about a potential catastrophe that could see interest rates on credit cards, mortgages and car loans skyrocket. [...] Continue Reading...
How confident should you be about Democrats and Republicans reaching an accord on raising the debt ceiling? Confident enough. Don’t get me wrong. I always have my stop-limit orders protecting key ETF positions. It’s just that the bond market as well as the stock market both agree… a deal will get done. 10-year treasury yields are still offering a [...] Continue Reading...
