Key Stock Indices

Key stock indices are the main barometers of the market’s health. The key stock indices are the ones that most investors pay attention to when trying to understand where the market stands. For the U.S., the key stock indices include the Dow Jones Industrial Average and the S&P 500. But the key stock indices can also include sub-groups that are crucial to a healthy market, such as the Dow Jones Transportation Index. In every country, there are key stock indices that one can follow to better understand the health of that country’s market.


For years, the correlation between copper prices and the stock market has been a reliable leading indicator of where stock prices are headed. The chart below plots daily copper prices (brown line), the S&P 500 (green line), and the correlation…

Two weeks ago, I wrote about how investors are exiting the stock market. That situation has now gotten worse. Investors, especially what is referred to as the “smart money,” are making a beeline for the stock market exit door. From…

As of July 24, 187 companies in the S&P 500 have reported their corporate earnings. For these 187 companies, their average decline in earnings has been 2.2%. If this is the final number, then it will be the biggest decline…

A significant number of companies on the U.S. stock market continue to “engineer” their corporate earnings with stock buyback programs. Sadly, investors have become too complacent with this and remain overly optimistic. Beware! This is dangerous. Earnings Now Outright Misleading…

This morning, the news is full of talk about Greece. This weekend, the government there introduced capital controls in what’s looking more and more like a country on the brink of financial collapse. Greece leaving the eurozone is of importance…

With each passing day, there is more evidence that suggests the stock market is a dangerous place to be; the upside seems very limited and the downside risks are increasing. At the end of the day, for key stock indices…

The late Sir John Templeton said it best when he explained investors’ emotions at major turning points in stock market cycles. He said, “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” Investor…

On November 30, Switzerland’s citizens will cast a very critical vote. Through a referendum, they will vote for or against the Swiss National Bank increasing its gold bullion reserves to 20%, the central bank halting the selling of gold, and…

Over the past few months, I warned my readers the stock market had become a risky place to be. While I also suggested euphoria could bring the market higher than most thought possible—to the point of irrationality—the bubble has now…