Stock Market – Hit by a Virus!
https://youtu.be/9RICeh7Ux9A In our last update, we talked about market complacency. Needless to say, investors are no longer complacent with this recent market downturn. Because of this selloff, our THORdex has retreated a bit, but it is still elevated at just above 75. This is not like March 2009, when the THORdex was at 5. That […]
Investor Psychology: US Investors are Thrilled
https://youtu.be/XJ3ZMqcSiXk Investor psychology follows a very distinct cycle of optimism – to euphoria – to fear – to despondency and back to optimism. The stock market is one of the only market places where buyers are sparse when things go on sale and becomes crowded as things get more expensive, as it is today. We […]
Happy Thanksgiving: Don’t Make “Turkey” Investments
https://youtu.be/C7PG6wHwrX0 In the spirit of Thanksgiving, we want people to enjoy their turkey, but we also want them to avoid making “turkey” investments. Two years ago, the “turkey” investment was buying bitcoin when it was close to $19,000. More recently the “turkey” investment has been marijuana stocks that are down more than 50% in the […]
Today’s Technical Analysis: Market Divergence
https://youtu.be/LeF5OJaSOxs Technical analysis is simply a way to glean into the supply/demand characteristics of a market or security. Usually, the technicals and the market go in unison – technicals rise and so does market, technicals fall and so does market. However, there are times when technicals and price “diverge”. On the monthly S&P 500 Index […]
Hungry for Yield?
In a world where $17 trillion of global bonds are selling at negative interest rates and the 30-Year Treasury Note is yielding close to 2%, investors are searching for yield. The two areas that look attractive today are Business Development Companies (BDCs) and Mid-stream Master Limited Partnerships (MLPs). On the income alone, investors will double […]
THORdex Update: Stock Market Risk?
https://youtu.be/bFsmSiyIevk Today we will give you an update on the THORdex, our proprietary tool we use to measure risk in the US stock market. In this video, we will highlight the back-tested data of this measure going back to 1978.
Keep the Fed Independent
Like many others, we have complained about many of the decisions the Federal Reserve has made in the past. However, we would rather have an independent Federal Reserve than one swayed by politics. Historically, the more independent the central bank, the lower the rate of inflation.
US Stocks Disconnect from Earnings
When buying a stock, you are investing in the future of the company. Historically a stock price is highly correlated to earnings growth. If earnings grow, the stock increases and vice versa. What we have seen in the past decade is that many US large company stock prices have increased, but earnings have not kept […]
Are We Headed Into a Recession?
The yield curve turned negative and is a possible sign of recession. Are there any other signs? Yes, trucking rates are now down year over year. Also consumer confidence is near a 50 year high, which has shown to be a contrary indicator. The probability of a recession has increased.
China Trade Deal: What It Means for Your Portfolio
According to THOR’s disciplined approach, we believe international stocks (especially emerging markets) are set to outperform US stocks over the next several years. The current trade dispute between the US and China may be a catalyst. If a deal is completed, emerging market stocks should appreciate much faster than US stocks. If there is […]