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Investor Sentiment

The 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…

The 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…

It 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…

Even 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…

Amid 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.…

Financial 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…

For 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…

With 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…

The 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…

This 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…

There still is no real trend in the equity market. One day, stocks sell off big-time; the next, the S&P 500 and Dow Jones Industrial Average hit new record-highs. This is a very tough market to figure; anything can happen when monetary policy is highly accommodative. A lagging…

If investor sentiment has changed to, once again, favor blue chip stocks over the market’s more speculative issues, oil and gas still have sectoral price momentum. This is evident in the price action of many of these stocks, as well as the rate at which new secondary offerings…

The reckoning that’s going on in high-valued, former momentum stocks is continuing and if the trend continues, there should be some very good trades to be had. One sector of the stock market that’s been consistently hot until recently has been the 3D printing area. It’s recent cooling…

It’s just the same old story with stocks. One day they’re up; the next day they’re not. If 2013 was a breakout year from the previous long-run recovery cycle, 2014 is a year of choppiness. Stocks just can’t seem to latch onto any particular trend. A convolution of…

First-quarter earnings results for Harley-Davidson Inc. (HOG) were good. The motorcycle manufacturer did a solid job boosting its bottom line on what was a decent gain in sales, particularly internationally. First-quarter earnings per share grew 22% to $1.21. U.S. dealers sold 35,730 new motorcycles in the quarter for…

The S&P 500 index really hasn’t done much since the beginning of the year but churn…but then again, why shouldn’t it? For stocks, 2013 was an exceptional year. If we get another positive year on top of dividends, then it’s total gravy. The capital gains over the last…

With the broader stock market selling off, it’s amazing to see a company’s share price defy the near-term trend and appreciate in value. Time and time again, Johnson & Johnson (JNJ) gets bid when the broader market faces convulsion. It’s a powerful signal, and there is still a…

Stocks are churning without any notable trend, influenced by geopolitical events, the lack of corporate reporting, and a recent change in investor sentiment regarding valuations. The fact is that a lot of stocks are ahead of themselves, and this is why we may very well get a lot…

The current stock market sentiment is bullish and based on the charts, there are indications that the market wants to go higher, especially technology and small-cap stocks. The S&P 500 is eyeing another record-high and it may just reach it by the time you read this. While stock…

You know another earnings season is right around the corner because Oracle Corporation (ORCL) and Adobe Systems Incorporated (ADBE) always report their fiscal results just ahead of the calendar quarter end. Both technology stocks are bellwethers, and while they are mature enterprises, they do help set the tone…