Market Update – September 30, 2010
Market Anomalies – a Fallacy? There are many market anomalies that the press loves to talk about. Following those anomalies, however, sometimes can be hazardous to your investment health. Analysts are always looking for ways to outperform the market and will test almost anything against stock market returns. In many cases, the anomalies are only […]
Market Update – September 15, 2010
Should taxes be raised on those making more than $250,000? This recession is deeper and longer than any recession since the Great Depression. It was also caused by the same event that caused the Great Depression – a huge credit bubble that burst. Say what you will about Ben Bernanke, but he did learn some […]
Market Update – September 1, 2010
Bad news sells newspapers. That really tells us what is happening today in the financial markets. This is manifesting itself in poor, emotional decisions by investors (selling stocks and buying bonds). In our last market update, we talked about how the stock market is now selling at one of its cheapest levels relative to bonds […]
Market Update – August 16, 2010
Is The Next Bubble The Bond Market? In the 90’s we had the “tech” bubble and in the 2000’s we had the “real estate” bubble. Going forward, is there another bubble investors should be concerned about? We believe a bubble could be forming in the bond market. A bubble occurs when money rushes to a […]
Market Update – July 30, 2010
High unemployment can be fixed today There is nothing more frustrating to us (and many of you) than to continue to hear pundits say that we will have a sustained high level of unemployment for years to come. There are a number of ways to solve the unemployment problem – one of which is to […]
Market Update – July 16, 2010
The Tale of Two Cities What are the two cities? The news of woe – a possible second dip in the economy – and the expected good corporate earnings reports. The media has been replete with negative news about the economy for the last two months. We stopped counting how many articles we had read […]
Market Update – June 30, 2010
The stock market is down ~ 6% since our last update and as such, bonds have rallied. At the risk of stating the obvious, basic supply and demand gives a very top level approach to why. For example, depending on the figures used, 2009 saw an inflow to bond mutual funds of between $357 billion […]
Market Update – June 12, 2010
The extremes in the market in the recent past – overbought in mid-April and oversold just a couple of weeks ago – have dissipated. Volatility has fallen and the market has held support at a critical point 4 times, which is a good sign. It is not unusual (actually it is expected) to have a […]
Market Update – May 28, 2010
Calm Waters ahead? The past three weeks have probably been the strangest shift in individual investor psychology we have ever seen in our 24 years of investment experience. We went from a calm steady market to almost complete panic in three weeks. We now believe the market is trending to a more stable period ahead. […]
Market Update – May 20, 2010
There is one constant in the financial markets – emotions. All markets go through bouts of “fear and greed.” The length of these emotional ups and downs is different each time. It was only three weeks ago that we were receiving phone calls from clients who were very optimistic about the market. One client left […]