bear market

Two Charts Stock Market Investors Should Worry About

By Monday, March 16, 2015

Stock market bearish InvestorThere are two important stock market-related charts investors should be worried about. They will be of the utmost interest to bearish investors.
Bearish Investor Sentiment Plummets
The first chart has to do with the declining number of stock market bears. The best time to buy stocks is when there’s blood on the streets (like in 2008). In other words, the best time to buy a stock, or any other investment for that matter, is when it’s down and out and nobody wants to buy it…. Read More

Reaching the Point of Maximum Optimism

By Monday, March 10, 2014

Bear Market Twists News to Lure in More InvestorsThis past Friday, the Bureau of Labor Statistics reported 175,000 jobs were added to the U.S. economy in the month of February. (Source: Bureau of Labor Statistics, March 7, 2014.)
The way the media reported it…
“Friday’s jobs market report caught the market by surprise,” was what most media outlets were telling us via their untrained reporters. The expectation was an increase of 149,000 jobs in February (after a dismal December and January jobs market report) and so the usual happened—stocks went up and gold went down on a jobs market report that was only slightly better than what was expected…. Read More

2014: The Year the Stock Market Topped Out?

By Friday, December 6, 2013

Federal ReserveTo close off the week, I’d like to offer some words of wisdom from my old friend Tony Jasansky, P.Eng. Tony has spent more than 40 years studying and analyzing the markets. He’s one of the best stock market analysts I know. Here’s what he has to say about stocks right now…
“The only obvious difference between Janet Yellen, the incoming Chair [of the Federal Reserve], and the present Chair, Ben Bernanke, is in their gender…. Read More

Why the Prediction I Got Wrong Back Then Is So Vital Today

By Monday, July 15, 2013

stock market crashBack in late 2011, I created a widely circulated video that included six predictions. I hit it on the head with five of those predictions. But the winners are not what are important to my readers today; it’s the prediction I didn’t get right that’s vital now
Back then, I said the U.S. dollar was “dead” and wouldn’t go anywhere. I pointed out that if it were not for the continued crisis in the eurozone, the greenback would fall flat on its face…. Read More

Has Gold Lost Its Shine For Good?

By Friday, June 28, 2013

280613_PC_leongBack in April, I said gold was looking bad on the chart and that as long as the stock market continued to advance higher, the prospects for gold were dim. (Read “Is Gold’s Near-Death Crisis Over-Exaggerated? Concerns of a Market Meltdown May Not Be.”)
Fast-forward two months, and while stocks have been in a minor correction, there continues to be distaste for holding gold.
The reality is that inflation is benign and will likely stay that way for a few years…. Read More

Why We Have Seen the End of the S&P 500’s Bear Market Rally

By Monday, June 24, 2013

Since the announcement from the Federal Reserve about tapering off quantitative easing, the key stock indices have been showing increased selling pressures. Just take a look at the chart of the S&P 500 below.
 SPC S and P 500 Large Cap Chart
Chart courtesy of www.StockCharts.com… Read More
The S&P 500 started 2013 with momentum to the upside. Investors bought in hopes that the index would continue to go higher, and by no surprise, it did reach its all-time high. As expected, after the Federal Reserve announcement, sellers took hold of the S&P 500, and it broke below its 50-day moving average for the first time this year (indicated by the black circle in the chart above)—a bearish indicator, according to technical analysts.

What Recovery? Americans on Food Stamps Outnumber Population of Spain

By Monday, June 24, 2013

Americans on Food Stamps Outnumber Population of SpainAs of March of this year, 47.7 million Americans are now on some form of food stamps. Between 2000 and 2012, the number of Americans resorting to food stamps increased more than 171%. In 2000, there were just 17.1 million Americans on food stamps. (Source: U.S. Department of Agriculture, June 7, 2013.)
There are more individuals on food stamps in the U.S. economy than the entire population of Spain—46.17 million. (Source: World Bank web site, last accessed June 21, 2013.)
That costs the government money…. Read More

A Mirage Called the Stock Market

By Monday, June 3, 2013

A Mirage Called the Stock MarketWhile an economic slowdown is looming over the global economy, no one seems to care, as stock markets continue to reach new record-highs—giving investors false hopes of economic growth. But how long can this mirage actually last?
The economic slowdown in the global economy I’m talking about is a worldwide pullback in growth. Take India as the first example. According to India’s Central Statistics Office, the Indian economy is growing at five percent—its slowest pace in a decade!… Read More

If This Is Economic Growth, Then What Will an Economic Slowdown Look Like?

By Monday, June 3, 2013

As I have written in these pages many times before, economic growth in a country happens when people are finding jobs, real wages are rising, consumers are spending, businesses are expanding and seeing their inventories decline, and the general standard of living is rising.
But all of these events are missing in the U.S. economy.
The jobs growth we have witnessed following the Great Recession has been in low-wage-paying sectors. Despite the politicians telling us we have economic growth, we still have a significant number of Americans unemployed or working part-time because there aren’t any full-time jobs for them…. Read More

It’s Official: NYSE Margin Debt Hit New Record, Surpasses 2007

By Thursday, May 30, 2013

Margin Debt Hit New RecordIs it just me, or have investors completely abandoned the concept of risk and reward?
The reality of the situation is that the key stock indices are treading in shark-infested waters and the risks are piling up daily. I see bearish signals all over, but the theme among investors, even conservative investors, continues to be “keep buying.”
It’s official…
Margin debt—that’s the amount of money borrowed to purchase stocks—on the New York Stock Exchange (NYSE) reached its all-time high in April…. Read More

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