Following excerpt explains it all: But doesn’t money growth produce inflation? Normally, yes, but it has to go somewhere for that to happen. He says, “You miss the circulation effects as the money moves between buyer and seller, saver and spender, three or four times. [Now] it just stays in the bank.” Full Article: Barron’s:…
30 Stocks That IPO’d In The Last Yr: (Q2 2012- Q2 2013) 1 BLUE Bluebird Bio Inc 2 GIMO Gigamon Inc 3 TXTR Textura Corp 4 DATA Tableau Software Cl A 5 NBCB First N B C Bank Hldg 6 QIWI QIWI Plc Cl B Ads 7 VOYA I N G U.S. 8 INSY …
This Week’s Trading Lesson It is sometimes difficult to know where to begin when deciding whether a stock is worth purchasing or not. Here are 7 questions that I think everyone should ask before buying a stock, as well as what I look for when answering the questions in the most basic form. 1. Is…
This week’s Trading Lesson Few Make Money; Most Lose: People frequently ask me, “How much money can you make trading stocks?” I understand why people ask the question but it is a question that does not have one easy answer because there are so many variables. It is like asking, “How much money can you…
Conclusion: Technicals Lead, Fundamentals Lag. The following two case studies illustrate a very important point: The market and individual stocks (i.e. technicals) move months BEFORE the fundamentals move (up or down). The reasons “why” are lengthy and outside the scope of this article. Instead of discussing the “why” we shall focus on the “what.” The reason is…
Conclusion: Not healthy for the global economy or The US stock market or other “risk on” markets. Unless it forces U/Ben to print more. Remember he doubled down in December when $45B/month (QE 3 announced in Sep) didn’t send stocks higher. Russell 2000: Down >400 Dow Points Transports: Down…
Oct 10: I sent out a note saying “Rally Under Pressure” Oct: 19: Status Changes to Market In A Correction (Normally, a correction is defined when a market or stock declines >10% below a 52-week high. My definition is a little different. I look at how…
Long Sideways Patterns Are Normal For The Stock Market: This is one of my favorite charts because it clearly shows that we are in the middle of a long (12 yr) sideways pattern in the US stock market. These long sideways periods are “normal,” have happened before, and will happen again. …And So…
Zero-sum Game: Websters.com defines a Zero-sum game as: a game in which the sum of the winnings and losses of the various players is always zero. Origin: 1940–45 Myth: Investing IS a Zero-sum game Wall Street in and of itself is filled with countless “myths” largely because so many people, even the so-called professionals, simply do not understand it. One of these myths is that investing is a zero-sum game and we would…
1. We have come too far too fast. How many times do you remember seeing the SP500 soar 17% in 3 weeks (or know of it ever happening in history)? And the kicker- the move has been on below average volume! Moreover, if the market is to get back to 1370 (2011 highs) by year end- it will have to move 28% from Oct 4- Dec 31. Possible, but probable?
2. Nothing has changed- the “fundamental” mess that sent a slew of risk assets lower over the summer (i.e. US and EU debt issues, anemic economic growth, etc.)- are still unresolved… Everyone (right now) is focused on Greece. However, even if Greece is “handled” it does not address the broader issue: The other PIIGS are broke!
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3. Most bear markets last 18-24 months- not less than 1 day. The S&P 500 officially hit bear market territory on 10/4 (down 20% from its 2011 high) and that lasted for a tenth of a second because that was the exact low for the year (so far). Normally, the 18-24 months allow stocks to reset their bases and paves the way for new leadership to emerge.