Stocks took a beating last week as all major stock market indexes (the Dow, S&P 500, and 15-51 Indicator) lost 6%. Stock market strength via the 15-51 Indicator is the only index still in positive territory for the year. It’s up 2% year-to-date even after this most recent correction. The Dow and S&P have lost...Read More
The Dow Average has been anything but average recently. In fact, the S&P 500 has consistently outperformed it over the last one, two, five, and ten-year periods. That makes the Dow Jones Industrial Average a below-average portfolio. What’s the problem? Perhaps the greatest benefit of a small portfolio is its ability to turnaround quickly and...Read More
It’s hard to believe that LOSE YOUR BROKER NOT YOUR MONEY was published four years ago today. Below are the results for the portfolio detailed on page 162 versus the major market indexes since publication. 4 Year Gain 15-51 portfolio 101% DJIA 39% S&P 500 55% Happy 4th!Read More
Jun 14, 2015 The prices for stocks and gold continue to oscillate to nowhere. Both the Dow Jones Industrial Average and gold are flat for the year. While those two benchmarks haven’t produced any growth so far, stock market strength via the 15-51 Indicator has gained a respectable 5%. See below. Now that may...Read More
There is a lot of confusion surrounding the bond market and yields, and there is one misnomer I feel compelled to address. A recent Wall Street Journal article entitled, U.S. Government Bonds Rise; Foreign Investors Pile into Auctions (May 14, 2015) highlights a common misconception about bonds. The author attempts to explain the recent pop in yields...Read More
One of the most paralyzing conditions for investors is when they’re scared of making a move – afraid of what might unexpectedly happen. How often things don’t go as planned — and so they sometimes decide to leave well enough alone and hope issues magically disappear and/or correct, and that robust gains will automatically incubate...Read More
Stock prices and yields are key indicators of economic vitality. In healthy markets they move together higher during expansions, and lower during downturns. These are both choreographed moves from central government planners as well as natural results from free market activity. Investors are naturally pulled towards higher rewards – and nothing outperforms the stock market...Read More
Last week Dow Jones announced that Apple will replace battered telecom giant AT&T in the Industrial Average. The change will take place on March 19, 2015, and while most theories regarding the change point to the impending 4-to-1 stock-split of another Dow component (Visa), I suggest a very different motive: Poor Performance. See below. There is...Read More
Several weeks ago President Obama gave his State of the Union speech and according to him all is hunky-dory. He touted the fastest growing economy since the tech boom, the strongest labor market since 1999, and shrinking deficits for the first time since the Great Recession. Either Obama is living in a different world than...Read More
Gold has quietly risen 12% from its 52-week low reached just a few months ago, on November 5, 2014. In that time yields have dropped a whopping 24%, also with little fanfare. But stocks, again, stole the headlines. Volatility is the theme. The Dow Average has been up a point or down a point more...Read More
