Last week I made a big, sweeping statement… that the action of a market index doesn’t represent the actual market. Truth is, there may be one exception to that rule — big tech. Big tech companies make up a sizable chunk of both the S&P 500 as well as the Dow Industrials. For instance, in the …
When it comes to thinking about sectors of the stock market, a general rule of thumb is, if a sector performs poorly in a given year, it’ll do better the following year and vice versa… …EXCEPT if there are significant commodity-related or regulatory issues impacting the markets. Energy happens to be one of those sectors. …
Here’s a secret… Bear markets aren’t the end of the world. They’re a fact of life. Professional Wall Street understands it. And if you’re going to be a successful investor, you have to accept that reality too. Not everything is “doomed” when a bear market kicks in. There are always options for smart investors. The …
Absent Omicron (or some other Greek letter variant) crushing the world and causing another panic lockdown or some other equally market-shaking cataclysm that would green light the Fed to keep its price supports in place — the Fed has done its utmost to prepare the market for the worst. No more free money. It’s hard. …
One of the most dangerous things you can do as an investor is load up in a market that is weak internally… A market with weak internals is like a termite-infested house. It can look perfectly fine on the outside, but inside it’s falling apart. Today I’ve got another tried-and-true technical indicator to tell you …
RSIs, MACDs, Stochastics, Bollinger bands, Elliott Wave… Welcome to the world of technical analysis. Technical analysis is price-based analysis. It’s done by analyzing the price action of some liquid asset, like a stock or futures contract. (Occasionally volume and other data may factor into certain calculations.) And it offers one big advantage: Simply by looking at …
The big day came and went this past Wednesday. Federal Reserve Chairman Jerome Powell stepped up to the mic and officially announced the shift in policy by the all-important Federal Open Market Committee (FOMC). They were doubling the rate of their taper — to be finished roughly by March. And then they would be looking …
When is it time to bail? How do you know when it’s time to sell your winners before an actual bear market turns them into losers? I really wish there was a simple answer to that question. (Of course if there were, we’d all be rich.) It’s a hard question because there’s no one-size-fits-all answer. …
What goes up… The perma-bear contingent of the market — those always calling for the next major collapse — notwithstanding, the reality of the stock market is that it goes UP roughly 83% of the time. Still that means for roughly 17% of the time, the bears are right. We may be getting ready to head …
Any eighth grade economics text book will tell you there are three ways to deal with an overspending problem by the government: Increase taxes. (aka Career suicide for politicians. Cut spending. (Also career suicide for politicians.) Borrow money. (The irresponsible yet painless solution.) Our government has been taking the irresponsible yet painless way out for …
Dealing With the Government’s Deranged Debt Addiction Read More »
