There's been some interesting comparisons to the current stock market with 2008, 1987 and 1929 in recent days, so I thought I'd look at the charts myself and see what's going on. First, I should mention a post I put up a couple weeks ago before my vacation to Sicily where I took a look [...]
On Friday, esteemed economist Paul Krugman posted this tweet... This was after the government reported that both CPI and PPI came in hotter in August than expected, due to a rise in energy prices. As expected, Krugman was excoriated for the fact that people need all three of those items he wants to exclude from [...]
To make market beating returns in stocks, you want to be sure to ride the big trends up when they occur, and employ some means of protection when conditions get difficult. Therefore, you want to pay attention to trading days when the action is somewhat unusual, and may indicate a change in trend. A true [...]
I've been an observer of the financial markets for over three decades now. More than once I've gotten caught up in the hype of news suggesting that a certain market should go in a particular direction. That hype was usually wrong. The first time this happened was the 1994 stock market, which is interesting, because [...]
Trading stocks is hard, and I won't even pretend to have just a few of the answers. However, years of observation of big winning stocks has uncovered a pretty strong indicator of future strong performance. It goes like this... I have observed that many stocks that embark on a significant run over the course of [...]
This is a new regular type of post I'll be making. I've noticed over years of observation that stocks that breakout of a base and make a 10% gain or more on heavy volume tend to end up being at a higher price a year down the road. This doesn't mean you step in and [...]
It's no secret I've been bearish on the economy and US stock market for over a year. Given what transpired during the Covid-19 pandemic, ie, the massive monetary and fiscal stimulus poured into the economy by a panicked government, I felt we'd have to pay the piper at some point. In some ways, we certainly [...]
I'm of the opinion that inflation will be with us for awhile. With that in mind, I thought I would provide some thoughts on how to invest in such a market climate. First of all, if inflation remains high, and interest rates remain high, the overall stock market will underperform. Why? Because high interest rates [...]
Yesterday, the Dow Industrials rose almost 1,200 points on the back of a CPI report showing that inflation had slowed to 7.7% year over year. The market is anticipating that the Federal Reserve will only hike rates by 50 basis points in December, and then that may be it for the rate hikes. Here's the [...]
By many measures, the U.S. stock market was due for a rally last week, and it got one. Over the last three trading days, the market rallied anywhere from about 2.5% to 4% among the major market averages. Prior to the start of the rally, the market had declined for three consecutive weeks after the [...]