Established in 1957, the S&P 500, also known as the Standard and Poor’s 500 Index, is a capitalization-weighted index of 500 large-cap common stocks. Capitalization-weighted means that the companies with largest stock market capitalization have the greatest impact on the value of the index. The S&P 500 is the second most widely followed stock market index in America after the Dow Jones Industrial Average.
In 2014, I was able to travel to Europe on six different occasions. I just came back from England. These trips to Europe enable me to see how the countries there are faring economically. And I can tell you first-hand—take England and Germany out of the picture, and most European countries are in an outright depression. (Not good news f… Read More
The U.S. stock markets have experienced two strong years of back-to-back gains; the S&P 500 soared approximately 30% in 2013 and a solid 13% in 2014; and the Dow Jones Industrial Average recently topped 18,000 for the first time ever. With the Federal Reserve expected to barely increase interest rates in the second half of 2015, t… Read More
When you take all the fluff out of the markets, like artificially low interest rates and other easy monetary support from the Federal Reserve, we need to realize (at the end of the day) that stocks trade on a fundamental called corporate earnings. And going into 2015, as I’ll detail below, corporate earnings are weak at best.… Read More
To see where the global economy is headed, I follow the prices of oil and copper. The prices of these commodities tell us about demand in the global economy. If the prices of oil and copper are rising, it means there’s prosperity. If the opposite occurs, it means industry (factories) is not busy and that a global economic slowdown is no… Read More