investor sentiment

Stock Market Reaching Top; Four Reasons to Be Worried

By Wednesday, June 3, 2015
Stock Market EuphoriaThe late Sir John Templeton said it best when he explained investors’ emotions at major turning points in stock market cycles. He said, “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” Investor Euphoria So Strong, There’s No Fear! Below is a chart of the Chicago Board Options Exchange (CBOE) Volatility Index (VIX), often referred to as the “fear index.” As you can .

Why Investor Sentiment Is Ignoring Stock Results This Earnings Season

By Wednesday, April 15, 2015
Stock resultsThe stock market continues to be mediocre. Economic data from abroad isn’t particularly inspiring. Investors are likely to yawn at first-quarter earnings season results this year as they did with earnings for the fourth quarter of 2014. If there is an overarching theme to the stock market’s action this year, it’s that the Federal Reserve is now the main catalyst likely to change investor sentiment. Investor Sentiment Expecting Little This .

While Markets Stall, This Stock Is Flourishing

By Monday, November 3, 2014
Stock Is FlourishingIt looks like large-cap technology stocks, especially those related to online businesses, are experiencing a slowing down of what’s traditionally been some very solid growth. Amazon.com, Inc. (AMZN), Netflix, Inc. (NFLX), LinkedIn Corporation (LNKD), and Groupon, Inc. (GRPN) have all been under pressure. Many pure-play online businesses are still struggling to turn a profit, and investor sentiment towards these stocks has changed. Yet in this marketplace, dividend-paying blue chips continue .

Why I Expect a Big Boost in This Company’s 2015 Dividend Payout

By Wednesday, October 22, 2014
Company 2015 Dividend PayoutEven with the recent price retrenchment, there’s not a lot of value circulating in this stock market. Everything’s already gone up and the capital gains have been great the last few years. But it’s still a slow-growth environment in the global economy, and despite a very accommodative monetary policy, stocks can’t go up forever without experiencing a meaningful retrenchment. Company earnings are pouring in and there have been some disappointments. .

Why This Company Is a Consistent Winner for Investors

By Monday, October 20, 2014
One Company That’s Proven It Can Adapt to the MarketplaceAmid all the turmoil in capital markets, I’m reminded of all the good corporate earnings being released. Of course, the stock market is a system of discounting future business conditions and the recent sell-off has been pronounced, but stocks have come so far over the last several years. If the catalysts were deflationary pressures among oil prices and global economic activity, a little haircut in share prices is well deserved. .

The Biggest Risk This Coming Earnings Season

By Friday, October 3, 2014
Biggest Risk This Coming Earnings SeasonFinancial reporting is ramping up and what corporations actually say about their businesses is the best market intelligence available to investors. Acuity Brands, Inc. (AYI) is in the business of making lights for indoor and outdoor applications. Based in Atlanta, it’s highly likely you’re already using this company’s products without even knowing it. The business of manufacturing lighting is not front-page news, but that doesn’t matter because for this company, .

Top Stock to Watch Among These Three Winning Techs

By Wednesday, June 25, 2014
Top Three Winning Techs, but Only One to WatchFor years Micron Technology, Inc. (MU) struggled on the stock market as both competition and demand in the personal computer (PC) market took its toll on the chip maker. Now the company is experiencing a bit of a renaissance, and the stock has been trending higher on genuine business growth. In my mind, if Micron Technology is experiencing improved business conditions, it’s a positive indicator for almost everything else. This .

The Downside to Dow 20,0000

By Friday, June 13, 2014
Where the Stock Market Could Head NextWith the Dow Jones hitting 17,000 being pretty likely in the not-too-distant future, from there, it’s only another 18% or so until the Dow hits 20,000, which is pretty incredible. These numbers seemed so unrealistic just a few years ago but now, it’s not too farfetched. The most amazing thing to me is that stocks still haven’t experienced a material price correction since the financial crisis. Stocks aren’t necessarily stretched .

A Stock Market Break? These Indices Say No

By Thursday, June 12, 2014
These Turning Indices Show How Stocks Can Go HigherThe great monetary expansion is still alive and well and the effect on equity securities continues to be profound. But what I find striking about the stock market’s continued advancement is that it’s blue chips that are pushing through to new record highs. Speculative fervor in several sectors has diminished, but hasn’t completely disappeared. But it’s the big brand-name companies—a lot of which pay dividends—that just keep on trucking as .

Rise in Financials a Good Sign for the Broader Market?

By Thursday, May 29, 2014
Financials Supporting Bullish Stock Market SustainableThis stock market continues to show material resilience as financials have turned a bit and are helping the S&P 500 index. Wells Fargo & Company (WFC) just hit a new record-high on the stock market with a forward price-to-earnings ratio of just under 12, offering a 2.8% current dividend yield. Most of the big banks have actually been in a downtrend in recent months, including Bank of America Corporation (BAC), .
Sep. 3, 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: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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