Stocks

Stocks are any equity securities traded on a stock exchange, the value of which fluctuates due to the supply and demand for such securities. Stocks are often grouped in a specific sector and can be viewed as representative of the broader marketplace.

Due to the subprime mortgage-related financial crisis of 2008/2009, stocks dropped significantly in value and the entire global financial system was at risk of collapse. Only after dramatic intervention by central banks around the world were stocks able to stabilize after the shock.

The financial crisis caused the Great Recession in the Main Street economy. Stocks hit a low in March of 2009.

With dramatic monetary policy intervention, stocks recovered from their collapse and were able to move up strongly thereafter. The last two years in particular produced strong capital gains for equity investors. Stocks today are vulnerable to another correction because of this recent price strength.

To See Where Stocks Are Headed, Look at These Two Indicators

By Monday, February 9, 2015

See Where Stocks Are HeadedTo see where the stock market is headed in 2015, we don’t have to look much past these two important economic factors: the U.S. dollar and the economy, both domestically and outside the U.S.
Rising U.S. Dollar to Impact U.S. Equities
After the Great Recession, to drum-up sales, U.S. companies focused their attention elsewhere in th… Read More

February Looking Up for Stocks?

By Friday, February 6, 2015

February StocksFebruary appears to be setting up to be a month of romance with the stock market after the DOW blasted up 521 points in the first two sessions of the month.
Now, you must be wondering about how the stock market is playing, given the turmoil and volatility we witnessed in January that drove the key stock market indices to below their respect… Read More

Railroad Stocks the Best Market Predictor for Investors?

By Friday, November 14, 2014

Railroad Stocks the Best Market Predictor for InvestorsIt really is a great time to be in the railroad business. Cash flow is abundant and these stocks are poised for more capital gains.
While coal shipments have been a weak spot for railroad companies, virtually all other major customer sectors are producing excellent comparable growth.
And that growth is directly reflected in share pri… Read More

Two Micro-Caps Suggesting Fourth-Quarter Earnings Boost

By Monday, November 10, 2014

Micro-Cap Stocks Suggesting Fourth-Quarter Earnings BoostLots of corporate earnings are still streaming in for the third quarter, though mostly among smaller-cap companies. Top-line growth certainly isn’t robust, but it’s not bad either. The surprise I’ve noticed in third-quarter reporting has been the profitability. There has been plenty of double-digit comparable earnings… Read More

Money Supply Strongly Suggests Higher Inflation Ahead

By Friday, November 7, 2014

Money Supply Strongly Suggests Higher Inflation AheadAsk even an amateur economist, and they will tell you this: an increasing money supply eventually leads to inflation. It’s a simple concept; the more paper money there is in the system, the less it’s worth and the less it buys.
And this is exactly what is happening in the U.S. economy. The money supply is growing at a fast rate when com… Read More

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