
The Stimulus Backfire ! * The Fed can print it, but can’t manage it: States hoard cash intended to save teacher careers * Sign from the times: Top-performing worldwide indexes belong to socialist nations * Rich Lee on the sudden resurgence from the eurozone crisis * Plus, Alan Knuckman about the current stock selloff… beginning [...]
“It was the best of times, it was the worst of times…” I know it’s a bit saddle-worn, but old Chas. Dickens was 1 heck of a student of humanity, and his opening to A Tale of Two Cities, what with its dichotomous wisdom, foolishness, belief and incredulity, just seemed too apropos to pass on [...]
Did you ever hear the old saying: “Fool me once shame on you, fool me twice shame on me!”? Unless you were already a sophisticated investor, I’m sure you suffered some significant losses last year and I’m sure you’ve asked yourself: “what could have I done and what can I do to avoid such a [...]
BP shares plunged to a 14-year low this week on fears of political fallout. With investors seemingly deciding to panic all at once, BP’s U.S. exchange-traded ADR (the company also trades in London) tumbled 16% in one day on Wednesday. That fall cut the share price almost exactly in half, as measured from pre-oil spill [...]
By definition, the market itself has an underlying beta of 1.0, and individual stocks are ranked according to how much they deviate from the macro market (for simplicity purposes, the S&P 500 is usually used as a proxy for the market as a whole). A stock that swings more than the market (i.e. more volatile) [...]
The overall technical condition of the major indexes continues to deteriorate. We are a little oversold on an intraday basis but not on a daily basis. Charts suggest downside to near the 200 day moving averages of the major indexes. (NYSE composite broke below it friday.) For the S&P 500, that stands at 1100 today. [...]
Look. You can’t borrow your way out of debt. More loans won’t do it – you have to save and grow your way out. Saving and growing require an upswing in productivity. Thus the struggling PIGS – Portugal, Italy, Spain, etc. – do not just have a debt problem, they have an economic growth problem. [...]
The U.S. stock market jumped 3.9% on Monday, following a deal by the European Union (EU), the International Monetary Fund (IMF) and the European Central Bank (ECB) to bail out not only Greece but other European countries, as well. The $955-billion program resulted in broad gains in Europe’s major indices and set the stage for [...]
Last week I noted, “…high-flying stock markets are looking more and more vulnerable.” I wrote, “…resistance appears significant. Volatility (fear) is returning in a potentially big way. It’s not here yet; and that increases the likelihood of lower prices to come. Global markets are reflecting a reprise of contagion distress. I continue to suspect equities [...]
Down 1,000 points at its worst, the Dow recovered to a 350-point loss on the day. And all because “M” is just a hair too close to “B” on a standard American keyboard, we’re told. The story goes that a trader at a major firm perhaps mistyped a trade as “billions” rather than “millions.” Word [...]
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