My forecast first: the sky is not falling and we will carry on. Regular economic principles will trump fear and behavioral financial principles, and the stock market will continue its bullish trend during the fourth quarter. I did not want you to have to sit with bated breath until the [...]
We are now experiencing in the equity markets what I have expected for a number of months. Earlier this year, there were drops of 3 to 5 percent in February, April and July, but none showed quite as much selling violence as we have just seen in the past week. [...]
Our Missouri state government is concerned about a downtrend in its collection of tax revenues. I decided to check the reported statistics to identify the source for this worry. That did not take very long. On May 20, 2014, Governor Nixon announced he would withhold $35.1 Million in higher and [...]
What can a client receive from a good relationship with a financial advisor? What does that relationship look like? While companies are spending millions on research on Behavioral Finance, I suspect most client consumers spend little or no time and effort to evaluate what they want and need from a [...]
This has been a summer to remember for its pleasant weather thus far. But this week, more normal, higher temperatures are returning. In a similar way, earlier summer stock prices rose to new highs, but last week the indexes jolted us back to reality. Even bull markets do not travel [...]
Last week, AbbVie (symbol ABBV) announced it will change its corporate citizenship to the United Kingdom along with news of its acquisition of Shire (SHPG), a specialty biopharmaceutical company headquartered in Ireland. AbbVie is the research part split off in 2013 from Abbott Laboratories, the large cap Chicago based healthcare [...]
Today let’s look at a number of issues while the stock part of financial markets continues to perform its dance routine, one step forward and then one back. For the year thus far through Monday the 19th, the S&P 500 was only higher by 1.99 percent, the Dow 30 Industrial [...]
Some things never change. In our day of the thoroughly modern Federal Reserve Bank, Mr. Market hangs on every word, every nuance, every implied hint from the Chairperson. What I understand is this: Although the Fed will continue to buy fewer bonds from (lend money to) the US government each [...]
A month or so ago, I discussed the statistical probability of a change of the bullish stock market trend during the coming months. The view at that time was clearly uncertain. The indexes had plummeted during the last half of January until February 3, a minus 5.76 percent drop for [...]
Last week, I discussed the advisability of examining periodic corrections or pull-backs in the stock indexes. Particularly when January results are negative, one should be ready for the end of a bullish trend. From what occurred last week, the weather forecast for stocks looks better again, just like our physical [...]
