bull market

Stock Market Sideways: How this Plays Out in 2015

By Friday, July 24, 2015
Stock Market SidewaysThe one thing that companies aren’t doing is hitting their earnings out of the park and this is a problem for a stock market at its high. Countless companies aren’t reporting material comparable growth in their financials. So there’s no particular reason why stocks should be appreciating in value. However, it is useful to keep in mind that the equity market is all about one thing—discounting a future stream of .

Stock Market: Where’s It Going Next? The One Indicator I’m Watching

By Wednesday, July 22, 2015
Stock MarketIf it weren’t for the NASDAQ, this stock market would be flat once again. The resilience of technology and biotechnology stocks is a positive signal for equities. The Dow Jones Industrials, S&P 500 Index, and Wilshire 5000 Total Market Index‎ are basically flat year to date. Earnings season results continue to come in lackluster. But I would say that sentiment continues to be buoyed by Greece’s restructuring of its debt .

S&P 500 Bull Market Addicted to Mediocrity

By Thursday, April 30, 2015
Bull marketIncome-starved investors are helping prop up the long-in-the-tooth bull market (up 220% since 2009) on the S&P 500. How else can you explain the support the S&P 500 has found in the face of a really mediocre earnings season? The only way is if investors think it’s a good thing that more than half of S&P 500 companies are reporting sales below estimates to date. Bull Market Fuelled by Lower .

Bull Market Over? These Stock Market Trends Say No

By Wednesday, April 22, 2015
Bull marketWith the Federal Reserve waiting to change the interest rate cycle, the saving grace for the stock market is that the central bank will only do so if the economic and inflationary data is strong enough. Last year, investor sentiment reacted positively to the potential for changes in monetary policy. If economic growth was improving, an increasing cost of capital is natural. What Are Earnings Telling Us? We’ve seen the .

Stock Market Slowdown: Soft Data, Earnings Signaling Bull Market End?

By Monday, April 6, 2015
Stock market bull and bearA lot of economic news has been coming in softer of late and it’s affecting the stock market. That is to say that the data are often just slightly below existing Wall Street consensus. Stocks have been churning all year and the market’s lack of direction is a result of all the usual suspects: the Federal Reserve, oil prices, global economic news, and geopolitical events. Now that we’re on the .

NIKE Stock to Outperform Market in 2015

By Monday, March 23, 2015
Nike Stock to outperformGoing back to the lackluster corporate earnings from early reporters that I talked about in my last article, today, I’m taking a closer look at NIKE, Inc. (NKE), which appears to be outperforming the market so far in 2015. Current Economic and Stock Market Action In the fourth quarter of 2014, corporate earnings didn’t particularly sway market sentiment. For the most part, investors just yawned at the .

Why Fed’s Interest Rate Increase Won’t Cause a Stock Market Collapse

By Friday, March 13, 2015
Rising interest ratesWith the broader stock market gyrating based on expectations of the Federal Reserve’s possible interest rate increase, the NASDAQ Biotechnology index and Russell 2000 are still holding up near their highs. A closer look at the current market dynamics suggests rising interest rates won’t be the cause of a stock market collapse. Stock Markets Still Positive The Dow Jones Transportation Average is in consolidation (since December of last year), down .

Bull Market to Continue on Near-Term Price Strength

By Friday, November 21, 2014
Bull Market to Continue on Near-Term Price StrengthThere is plenty of price strength in this bull market. It’s still coming from transportation stocks and dividend-paying blue chips. There’s also been continued price strength among home improvement retailers. Lowes Companies, Inc. (LOW) recently soared on the stock market after beating Wall Street consensus with its latest earnings report. The stock has been on a tear over the last couple of years, just like The Home Depot, Inc. (HD). .

How the Markets Will Close Out 2014

By Friday, October 31, 2014
Markets Will Close Out 2014Credit card companies are some of the best indicators in the global economy. Visa Inc. (V) just reported a pretty decent quarter. While earnings were down comparatively due to a one-time charge, adjusted earnings handily beat consensus. The company’s fiscal fourth quarter came in solid, with growth of 10% on a constant dollar basis to $3.2 billion compared to the same quarter last year. Recently, the company increased its quarterly .

India Buying 450% More Gold?

By Monday, October 27, 2014
How Can Gold Prices Possibly Go DownThe demand and supply situation for gold bullion, something I’ve often talked about in these pages, has taken a new course…one very favorable to gold bulls like me. Gold buying in India is up 450% in the first nine months of 2014 compared to the first nine months of 2013. (Source: Government of India, October 14, 2014.) The jump in gold bullion buying in India is related to the easing .
Sep. 2, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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