Dow Jones

The Dow Jones Industrial Average, or Dow Jones, is a weighted index representing the stock price action of 30 of the largest U.S. corporations. It is the world’s most widely followed stock market index. The Dow Jones Industrial Average was created on May 26, 1896 and is named after Charles Dow and Edward Jones. The earnings and revenues of large corporations are often leading economic indicators. Hence, economists often look at the Dow Jones Industrial Average as an indicator of economic activity. If the index is hitting new highs, economic activity can be expected to be brisk in the next six months. Comparatively, if the index is falling to new lows, poor economic times could lie ahead.


Gold Investing: China Devaluation Could Send Gold to $5,000

By Saturday, August 15, 2015
Gold InvestingDespite a few years of weak gold prices, China’s currency depreciation could be the tipping point that drives gold above $5,000. The yellow metal skyrocketed between 2001 and 2011, and another decade of similar growth is not unfeasible. Let me explain. A series of events in China have me convinced that gold prices are set to explode..

Stock Market: Two Proven Indicators Confirm Trouble Ahead

By Monday, May 4, 2015
Stock market crashTrading volume on the stock market is plunging. In classical technical analysis, rising stock prices on low trading volume are usually a warning sign of lower prices for stocks ahead. Why? Lower volume suggests there is not much investor participation in the stock market advance. The chart below shows the change in volume on the Dow Jones.

Call Options Your Best Strategy to Buy with Markets at Their Highs?

By Friday, February 27, 2015
Call Options Your Best StrategyStock Markets Still Near Record-Highs In my previous commentary last week, I suggested the stock market would likely go higher by year-end. But I also warned that investors keep their guard up and enjoy some profits. Now here we are, a week later, and the stock market is at yet another record-high after the moves by the DOW and S&P 500.

Dow Jones Transportation Stocks Suggesting Bullish Fourth Quarter?

By Friday, November 7, 2014
Where Are Stocks HeadedIn terms of stock market direction, the Dow Jones Transportation Average recently pushed through to another new record-high. The index retrenched along with the broader market in early October, but it fought back hard to just over 8,800. Within the index, countless stocks have been doing well. Alaska Air Group, Inc. (ALK) slumped to.

India Buying 450% More Gold?

By Monday, October 27, 2014
How Can Gold Prices Possibly Go DownThe demand and supply situation for gold bullion, something I’ve often talked about in these pages, has taken a new course…one very favorable to gold bulls like me. Gold buying in India is up 450% in the first nine months of 2014 compared to the first nine months of 2013. (Source: Government of India, October 14, 2014.) The jump in gold.
Aug. 31, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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