If we could make a broad statement about stock investors, it would be that they have to be generally optimistic about the future. If stock investors didn’t feel that the future would be better than the past, then stock investments are most likely not for them. All things equal, companies have to do better than [...]
Are Stocks for Pessimists?
Interest Rates: Up, Up and Away!?!
In what is widely referred to as the Trump Bump, U.S. stocks have been moving up since the surprise U.S. Presidential election victory of Donald Trump. Stocks have been advancing on the hopes that some of the President-elect’s policies may make it into law. Most notably, lower corporate taxes, reduced industry regulation and infrastructure spending [...]
Any Gas Left in the Market’s Tank?
Leading up to the U.S. Presidential election, many voters anticipated that the markets would rally following a Clinton victory and fall following a Trump victory. Trump won, but markets didn’t fall. Instead, they rallied and rallied in a big way. Many U.S. stock sectors advanced on hopes that President-elect Trump’s policies would spur faster economic [...]
The Unexpected Trump Reaction
“I can say with 100% certainty that there is a really good chance we could see a huge, huge correction.” These were the words that billionaire Mark Cuban told CNN host Erin Burnet back on May 16, 2016, to describe what would happen to the stock market if Donald Trump won the election. Trump won, [...]
Why Can’t We Be Friends?
It is decision week in America. With President Obama termed out and Joe Biden not running for office, a new administration will be elected into the white House this week. It doesn’t seem like a stretch, but this seems to have been the longest and most controversial U.S. election we have had in some time [...]
U.S. Growth Springs Forward In Q3
In times of market volatility, we advise investors to focus on the big picture. Right now, the big picture is full of many bright spots. The biggest bright spot was announced last week when the U.S. Bureau of Economic Analysis released the first estimate of third quarter U.S. Gross Domestic Product (GDP). They reported that [...]
Paltry Increase in Social Security for 2017
Last week the Social Security Administration announced a slight increase in Social Security benefits for the New Year. After a year with no increase in social security benefits, any increase is welcomed, but the coming year’s increase won’t pay for much more than a cup of coffee. The monthly Social Security and Supplemental Security Income [...]
Where should interest rates really be?
Last week, the Federal Reserve pleased global stock markets by leaving interest rates unchanged. The Fed felt that, even though the unemployment rate is low, the labor market still had some slack and that inflationary pressures were still not strong enough. In a nutshell, Chair Janet Yellen stated, “We judged that the case for an increase has strengthened but decided for the time being to wait for further evidence of continued progress toward our objectives.”
Why are investors so glum?
Investors are not excited about stock investing right now. In the September 15, 2016, sentiment report by The American Association of Individual Investors, they found the following: 27.9% of investors were bullish on the market moving higher (versus a long-term average of 38.5%) 36.1% of investors were neutral on the market (versus the long-term average [...]
Quiet Market Finally Speaks Up
The streak is over. Last Friday, U.S. stocks ended their streak of trading within the narrow range. Prior to Friday’s decline of -2.5% (Source: Yahoo! Finance), the S&P 500 Index went 43 trading days without moving up or down 1% in a single trading day. Since 1990, there were only 12 other time periods where [...]