A spike in energy prices and sharply higher interest rates have been two of the leading causes for pullbacks in the past. Also, we need to pay close attention to quarterly earnings, which are currently coming in on the strong side.
One of the most notable things about bull markets is how they continually surprise you to the upside. Quite often investors will tell themselves “the market is overbought and has to correct,” only to find that it either doesn’t correct nearly as much as they expect or doesn’t even correct at all.
The answers to two looming questions are becoming clearer: Why have interest rates fallen? And is China actively trying to rid itself of exposure to the dollar?
There has been a clear preference this year for large cap stocks over small cap. This is readily visible when looking at performance of the Russell indices with the mega cap stocks like the Russell Top 50 Index up just under 5% year-to-date (YTD) while...
It’s time to do a technical checkup on the market. There have been a couple of trends to note recently that indicate where investors should bias their equity allocation. As I have mentioned a few times lately, there has been a large concern over valuations in the market.
Once an economic recovery picks up steam and inflationary pressures begin to rise, the market's reaction function "switches polarity" and incoming economic data is now interpreted as a negative market signal because it means there is a greater chance the Fed will be raising interest rates in the near future. This is where we find ourselves now.
In an age when governments of every political leaning and ideological stripe distort economic data to promote their parties’ interests, it is hardly surprising that the nation’s inflation rate is reported in a manner that best suits their political needs.
As I’ve been hearing the pushback to the market’s gains, there are a few that are louder than the rest. I guess if you say something enough times, it becomes truth. Unfortunately for the general population, not many investors are savvy enough to do their own statistical analysis nor do they have the databases...
Real estate is well back in bubble territory in some places, notably California. It won't end any differently this time for the buyers, but at least banks will not be on the hook for all of the loans.
In a recently published interview with Financial Sense, David Marsh, Co-Founder and Managing Director of the OMFIF, explains how central banks are now suffering the consequences of their own low-rate policies and, like everyone else, moving "herd-like" into the stock market.