One of the great questions being debated right now is how will the market react once QE3 ends this October. Those who believe asset prices (namely stocks, bonds, and real estate) are being supported by the Fed, and not by underlying economic growth, expect a correction or worse once the Fed withdraws its support.
Our recent market technician, Louise Yamada, provides her view on what to watch for a market top, while noting that multi-year breakouts in a number of large tech names may offset losses in other areas and drive more rotation.
There are many successful investors who have accumulated decades of experience and have drilled down their pearls of wisdom to insightful lists. One such list, or ten rules to remember, comes from legendary investor Bob Farrell who spent decades at Merrill Lynch & Co. and retired as their chief stock market analyst in 1992.
The year 2016 will see a number of important events: the US presidential election, the Summer Olympics, and, according to a growing number of market analysts, another financial crisis.
Given how well the credit markets warned of the last two major turning points in the market I respect the message of the credit markets over the stock market when the two do not confirm each other, as they are currently.
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.