3Q 2012 Commentary: DOW WILL PEAK JUST AS WORLD IS COMING TO AN END
“In fact, the worse things get in terms of the economic data, the higher the market goes on hopes of central bank stimulus. At this rate, the Dow will peak just as the world is coming to an end!” says...
View Article4Q 2012 Commentary: BETTER THAN EXPECTED
The S&P 500 gained +16.0% during 2012 with all of that arising in the first three quarters; the 4th Q was slightly negative. We’ll take a gift horse when we see it – we had not planned on Congress...
View ArticleTHE MARKET IS UP, YET…
During 2013′s 1Q, the S&P 500 soared to new highs by posting a +10.6% return. The healthcare sector lead the pack by gaining +15.2%. Consumer staples were up +13.8% while consumer discretionary...
View ArticleEntrepreneurs – Watch Out Below!
Time to take a break and realign your investment portfolio. The stock market is posting higher and higher highs, yet do you feel we’re in a strong recovery? Whatever expansion we have seen is not...
View ArticleAre Your Investments Addicted to the Fed?
The cat is out of the bag. The Fed’s pushing of liquidity (quantitative easing) has created a culture of addiction. Look no further than last week’s market action. Chairman Bernanke announced, for...
View ArticleFED’S BERNANKE INTRODUCES TAPERING
Perhaps 2Q’s most important development was Ben Bernanke’s June announcement that the Fed may begin to “taper” off its $85 billion/month bond purchases. This proposed end to “quantitative easing” sent...
View Article“Be fearful when others are greedy…
“Be fearful when others are greedy and greedy when others are fearful,” says Warren Buffett. The market is making new highs today following Bernanke’s announcement that the Fed will not jerk away the...
View ArticleMarket Math Madness: S&P 500 earnings do not compute
With the 2Q’s earnings season half way through, S&P 500 non-financial companies are expected to see their earnings decline by -0.6% according to The Wall Street Journal. Earlier the paper had...
View ArticleCars vs. Clothing:
Cars sales are hot – almost back to levels before the 2008 crash. It’s no wonder given that the average life of a US car is now over 11 years. Eventually, you’ve got to bite the bullet. But what...
View ArticleBonds Battered
Bonds (and bond funds) have been battered in the last 4 months. You may know that bond prices move inversely with interest rates (rates up = bond prices down). On May 1 of this year the 10 year...
View ArticleInmates (Investors) Are Running the Asylum
Truly the inmates (investors) are running the asylum. Yesterday’s news that hawkish Fed candidate Summers had removed his name sent the stock market toward record highs. God forbid we should have a...
View ArticleRates Are Arising
The yield on the 10 Year Treasury has more than doubled over the last 14 months. From a low of 1.41% in July of last year, the 10 Year’s yield rose to 2.98% on September 5. The rise had been gradual...
View ArticleRates Are Arising
The yield on the 10 Year Treasury has more than doubled over the last 14 months. From a low of 1.41% in July of last year, the 10 Year’s yield rose to 2.98% on September 5. The rise had been gradual...
View ArticleWhat Has Changed
What has changed since last week? With a gun to its head, Congress agreed to fund the Federal government until next January and pushed the debt ceiling out until February. The market interpreted this...
View ArticleInflation Is Low – So Far
Inflation is low – so far. Social Security benefits will rise only 1.5% in 2014. The small increase is due to the fact that inflation has been low. Last Wednesday’s CPI reading showed that overall...
View ArticleResearching Companies and Securities Is My Number One Priority
By far and away, researching companies and securities is my number one priority. I am constantly evaluating new companies in which to invest and determining whether to hold or sell current holdings....
View ArticleJanet Yellen Won the Battle
Janet Yellen won the battle with Larry Summers to be the next Fed chair. She is widely perceived as a monetary dove – that is, she will continue the quantitative easing programs initiated by her...
View ArticleFederal Debt Continues To Grow
Federal debt continues to grow, and last week’s Ryan-Murray proposal doesn’t help. It took 192 years for the country to accumulate $1 trillion in debt. It has taken us 30 years to accumulate the next...
View ArticleMIXED RETURNS
In 2013, the S&P 500 posted its best return in 18 years by gaining +32.4%. This achievement is all the more remarkable given that corporate earnings only grew +6.3% and revenues grew even less,...
View ArticleMIXED RETURNS
In 2013, the S&P 500 posted its best return in 18 years by gaining +32.4%. This achievement is all the more remarkable given that corporate earnings only grew +6.3% and revenues grew even less,...
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