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.
The S&P 500 and many other key stock indices are overpriced when measured by historical stock market valuation tools.
Share Buybacks Still Prevail on S&P 500
In the fourth quarter of 2014, the S&P 500 companies purchased over $125 billion worth of their own shares. In the trailing 12 months, they spent more than half a tri… Read More
There is a significant amount of evidence that suggests stock market valuations are stretched to the extreme. Even the Fed thinks the market is expensive.
Federal Reserve Concerned About Stock Market Valuation… Read More
On February 24, 2015, the Federal Reserve issued its semi-annual monetary policy report. In this report regarding the st
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 the storing of gold bullion in the country. (Source: Kitco News, September 30, 2014.)
If th… Read More
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 burst. Key stock indices are falling and fear among investors is rising quickly.
Please look at the… Read More
Now that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index has fallen 12.5% from its July peak.
Since 2009, every market pullback presented invest… Read More