The mainstream financial press would like us to believe that because the S&P 500 and Dow 30 are at or near their record highs that it must mean we're nearing the end of the current bull market and, as such, now must be a terrible time to buy stocks. Let's not jump to any conclusions, though. Instead, let's do our own due diligence to find out. Hint: If you've been stuffing cash under the mattress since the last market crash, you might want to finally go deposit it in your brokerage account. Here's why... Words: 420
Read More »2013 vs. 2007: An infographic on the Dow Then & Now
I believe Americans feel that investing in the stock market today is counterintuitive because of unemployment statistics, dysfunction in Washington and ongoing negative news about the U.S. economy....Take a visual look at what investors may be feeling in our new infographic...and you can see some of the reasons investors have thrown in the towel.
Read More »I’m “making the call” for a market correction of 50% – or more!! (+3K Views)
I don't relish the job of constantly pointing out the risks to the equity markets but since few on Wall Street seem willing (or able) to do this, I'm "making the call" for a market correction, as enough variables have aligned to indicate a high likelihood of stocks heading downwards from here. Words: 1203; Charts: 6
Read More »S&P 500 Is Still Undervalued By 5.3% – Here’s Why (+2K Views)
[In spite of the Dow now being at] a record high the Risk Premium Factor (RPF) Valuation Model shows that the broader market, based on S&P 500, is still undervalued by about 5%. [Let me explain further.] Words: 550; Charts: 1
Read More »We’re Nolonger Investors – We’re Just Playing Financial Chicken! Here’s Why
Investing...is dead! It died when markets became dominated by political rather than economic events. Investing principles that worked for most of the last 150 years are irrelevant in today’s politicized world. Investors, whether they know it or not, have been forced into a gigantic game of financial chicken....We are all forced to play this game whether we consider ourselves investors or not. [Let me explain.] Words: 848
Read More »This Metric Strongly Suggests a Major Correction in the S&P 500 Could Be Coming (+2K Views)
History shows that when investors experience a rapid decline in the amount of available cash in their brokerage account to spend/invest quickly such "negative net worth" leads to major corrections in the stock market. Currently such is the case so can we expect another such decline or will it be different this time?
Read More »It’s Time to Apply the “Greater Fool Theory” and Sell Your Winners to All Those Fools (3K Views)
The Dow has surpassed its all-time record high - set in October 2007 - and the S&P 500 is not far behind? Is this the early stage of another great bull market? Let's look back at the two previous times when the S&P 500 set new all-time highs and see if we can learn something. Wait...first put your "this time it's different" glasses on. OK, let's go. Words: 430; Charts: 1
Read More »Watch Out For Falling Stocks! Here’s Why (+2K Views)
The stock markets make no sense. They have literally lost touch with reality. Divergences between fundamentals, confidence and the valuation of markets are large [and, as such,] cannot last for long....The only question is how...and how quickly....this correction occurs. Words: 261
Read More »Manage Your Own Portfolio? Then These Articles Are For YOU
The vast majority of people who have money saved have it invested in the stock market, be it stocks, bonds, mutual funds, ETFs or warrants, and have it "managed" by their financial advisor/planner. Very, very few individuals manage their assets in self-directed accounts either through a full-service brokerage firm or totally on their own via an internet account. As such, very few articles are written for such an audience. This post changes all that with links to some very informative articles on virtually everything you need to know to succeed in today's marketplace.
Read More »The U.S. Stock Market Is Overvalued By More Than 50%! Here’s Why (+2K Views)
Key stock indices are becoming significantly overpriced. The value of the U.S. stock market stands at about 133% of GDP. The average for the past 60 years has been around 82%. By this measure, the U.S. stock market is overvalued by more than 50%! Words: 398
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