Still Treading Water?
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 [...]
What Is A Fund Anyway?
Since Mr. Market is in a mood to take profits, (which I mentioned in this space was likely) let’s look at gaining some practical education about current investing. If you want to invest in stocks or bonds but want diversification for more safety, what choices do you have? In general [...]
The Zero Interest Rate Problem
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 [...]
The Sad Truth About Unemployment
There is a story about modern technology (capital) and labor: the new factory has smart machines and robotics galore such that it runs itself. But it has also a man and a guard dog. The man is there to feed the dog each day. The dog is there to bite [...]
Revisit the Caution Flag
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 [...]
Whence Cometh Philanthropy?
Harvard University announced last week that Kenneth Griffin, a 1989 graduate, is giving $150 million primarily to support financial aid for its undergraduates. This is part of a $6.5 billion capital campaign started in 2013 to make a Harvard education affordable for all entering students, but especially those from low [...]
Sector Rotation
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 [...]
Be On Guard
Even though the stock market indexes have recovered some of their losses suffered this year, it is too early to be certain whether the shorter term bullish trend has changed to the downside, or this is just another pause that refreshes. When a bull market thunders ahead too far for [...]
What’s under your mattress?
In the good old days, your emergency money could earn at least 3 or 4 percent in a savings account or a short term certificate of deposit. This was often enough to help keep up with inflation. Now that the Fed has used its zero interest rate strategy to help [...]
New Year’s Prediction
History quiz for the new year: What happens after a really strong year in the stock market? Does the market then usually go up, down, or sideways? This is a more important question than many would count it. History repeats itself in many instances because people usually act according to [...]