Stocks overreacted to bank earnings this week and reversed their downward trend. Both stock market strength and the averages rose 2% for the week. Gold gained 6%. See below. There was a time when big banks were solid indicators of Market condition. But that day is gone. Banks like JP Morgan Chase and Wells Fargo...Read More
It has been two years since the 15-51 strength Indicator was made public via LOSE YOUR BROKER NOT YOUR MONEY. In that time the Indicator had a crazy run that peaked in September of last year; it then corrected some 25% down before closing the period with a respectable 26% gain. The Dow Jones Industrial Average,...Read More
The second quarter of 2013 ended with a bit of trading turmoil. Stocks were down, up, and then down again. Gold was down, down, and then up. Market interest rates were down, up, and then even. Through six months the Dow Average is up 14%; 15-51 strength lost 11%; gold, along with all the talk about...Read More
Almost a month ago I posted a blog about the sorry state of the Market’s management team. Towards the end of that blog which was titled, An Illness Called MDD, I say this: “Of course, Bernanke knows what is all too plain to see: the moment he stops feeding the beast [with QE] it will turn...Read More
Foreign investors sold a record amount of U.S. government debt in April 2013. It was just $60 billion of U.S. Treasuries, but it was a record nonetheless. And when you consider that U.S. central government needs approximately $85 billion of new debt every month to cover its fiscal losses, the $60 billion dollar move is...Read More
Since there was little change in the news this week I’m going to take this blog in a slightly different direction. I was struck by a recent Wall Street Journal article entitled, The Weekend Investor: 100% Stock Solution. The article reported that 9% of all mutual fund investors are “all-in” on the stock market. What a huge...Read More
I cringe every time I hear someone say that they don’t have the time to invest on their own. There’s plenty of time in the day, week, or month, to do what is required to invest successfully on your own.—You just need to know what you’re doing. All of the steps required and techniques needed...Read More
I diagnosed U.S central government with an illness I call Management Deficit Disorder (MDD) in February of last year. Since then they have shown no inkling of getting better. Instead the disease is getting worse, as widespread abuse is being uncovered everyday in Washington DC. It is a place gone mad. In the face of widely available remedies,...Read More
Japan bucked the trend of bleak news this week by reporting GDP growth of 3.5% for the first quarter. While three-and-a-half percent growth cannot be considered a boom, it might feel like one in Japan. Their economy has never really recovered from the tsunami, and until this welcomed first quarter news, has contracted for six...Read More
This week the Dow Jones Industrial Average did what it couldn’t do last week – it found the courage to close over 15,000 points for the first time in history. The chart below compares the Dow’s performance to Real and Nominal GDP; a discussion follows. In terms of today’s dollar, the DJIA has 500 more...Read More
