Investing

The collapse in the STA Risk Ratio, which tracks the most common measures of market sentiment, is a clear signal that something has changed in the market and that risk of a broader correction has risen sharply. While this is only one measure of "risk" it does suggest that investors should pay closer attention to their portfolios than normal and implement some risk management practices.

Too often investors focus on the negative, lose confidence in stocks and, as a result, they can miss great bull markets. I believe when it comes to finding investment opportunities it’s all about both monetary and fiscal policy. As such, I encouraged investors to follow the money. With that in mind, here are two of my favorite charts that I believe demonstrate how investors can do exactly that.

I generally shy away from making time-specific economic and stock marketstockcrashimages-1 predictions simply because odds are very low you’ll be correct on both the prediction and the timing. However, there are certain times when the environment is conducive for a prediction that comes along with an expiration date. Today is one of those times.

With the stock market up over 20% since we forecast in July, 2012 that we would see the Dow at 20,000...[by the end of the] decade, our forecast seems less ambitious than back then. US stocks are not overpriced or overleveraged, and remain more attractive than at prior peaks. As such, based on current conditions, we now project that...the Dow will reach 20,000 by late 2018.

According to some pundits, the market is dangerously close to a repeat performance of 1987. Today, I'm going to show you why they're wrong.

Support is support until it collapses but if the 10-year support line for the HUI Index is breached it is a loooong way down!!!

If you aren’t certain that you understand and can value your business far better than Mr. Market, you don’t belong in the game. As they say in poker, “If you’ve been in the game 30 minutes and you don’t know who the patsy is, you’re the patsy.”

History clearly shows that stocks don't fall during periods of rising interest rates. Sure, they might fall a little when a rate hike is announced - maybe for a week or so - but they usually bounce back quickly - and then they go higher.

Stocks have generally performed very well in rising-rate environments but the current rate cycle is unlike any other of the past 40 years, keeping investors on edge. A lot will depend on how inflation behaves.

The European economy and stock markets have even more pain coming. If you're invested in U.S. companies with a lot of business in Europe ... watch out. Their overall global tax rates could double ... maybe triple ... and crush profits. Here's why. Words:580