For the better part of 2010, most economists had suggested that global GDP would decelerate into 2011. Over the last 3 months, however, worldwide forecasts have been revised; many now believe that developed economies like the U.S. and Germany are accelerating, while scores of emerging countries will continue to grow in the 6%-8% range. With more economic expansion, particularly in the [...] [...more]
“The rich get richer,” you hear from those who demonize the creation of wealth. Nevermind the fact that the freedom to keep the fruits of your labor… the rewards of your work product… is one of the biggest reasons that so many people around the world have wanted to live in the United States. In decades of conversations with investors — from the [...] [...more]
At the start of 2010, investors in energy stocks had plenty of reasons for optimism. Global economic growth appeared reliable enough to sustain a modicum of stability in oil commodity pricing. Analysts anticipated that natural gas prices would climb off 2009 lows, aiding the integrated oil and gas majors. What’s more, these giant integrated oil and gas corporations sported [...] [...more]
Everyone enjoys a good Santa Claus rally. And in 2009, St. Nick has been noticeably kind to the major benchmarks. In the single week since 12/17/09, the S&P 500 has pushed 2.5% higher to new year-to-date peaks near 1125. The NASDAQ has been the gift that keeps on giving, catapulting 4.5% to a 52-week pinnacle. Indeed, most individual [...] [...more]
It’s one thing to recognize a cyclical bull market’s gains off bear market bottoms. In fact, by using the magical March 9 of ‘09 as an inflection point, we tend to think that little has changed in sector leadership. Across the entire 7 1/2 months, the financial sector has been the risky uber-mover with monstrous volatility. Tech and [...] [...more]
The closest thing that this market has seen to a correction was the 7% pullback in July, prior to Q2 earnings results. Similarly, the closest thing we’ve seen since July is the 5% pullback from an intra-day S&P high of 1080 on 9/23/09 to 1020 on 10/2/09; once again, trepidation has occurred before earnings reports. Of course, the better-than-anticipated July [...] [...more]
Banks aren’t lending, yet the SPDR Select Financials (XLF) keeps getting investor dollars. Consumers are exceptionally cautious in their consumption, yet SPDR Retail (XRT) continues unfettered. It’s pure momentum for the time being, and people are snapping up the investments that have been climbing the fastest. They’re exceptionally keen on purchasing fundamentally weak areas in near-term pullbacks. If you’d rather look for opportunity rather than ride [...] [...more]
