large-cap companies

Want a Stock Hitting a Record High? Bring on the Dish Soap

By Wednesday, October 17, 2012

Stock Hitting a Record HighThere are still all sorts of blue chips trading right at their 52-week highs; some are trading at their all-time highs. And the best part about this is that these companies are not expensively priced on the stock market.

Colgate-Palmolive Company (NYSE/CL) is one of the blue chips having an outstanding year on the stock market. This stock just hit an all-time record high of $109.84 (split adjusted), up from … Read More

Is the Stock Market Where It Should Be After QE3?

By Thursday, September 20, 2012

business arrow diagramOn a lot of occasions, the stock market sells off on the reality of its expectations, but it hasn’t since the Federal Reserve announced a third round of quantitative easing (QE3). The main stock market indices are holding up very well, consolidating more so than selling off on the news. Stock market sentiment continues to be relatively positive, with some hope for the economic future and the expectation that third-quarter … Read More

What Doom and Gloom? The Stock Market Is Going Up

By Monday, August 20, 2012

What Doom and Gloom? The Stock Market Is Going UpThe stock market rally continues, and it’s great; that is of course, if you own the right companies. For the most part, the best wealth creation over the last few years has come from large-cap, dividend paying stocks that are the brand names we all know. I’d never thought I’d be singing the praises of mature, blue chip companies (and dividends), but it’s always in the tough times that large-cap … Read More

Broader Market to Consolidate—No
More Upside Without the Fed

By Monday, August 13, 2012

Broader Market to ConsolidateA lot of smaller companies and micro-cap stocks are now reporting their quarterly earnings, and a lot of the numbers are pretty good. I’ve noticed particular financial strength in a number of micro-cap technology companies, along with good trading action among biotech companies.

There’s no real trend among micro-cap stocks, aside from the Russell 2000 Index, which is about five percent below its recent high set in March of this … Read More

S&P 500 Index Breaks 1,400—What’s Next?

By Thursday, August 9, 2012

S&P 500 Index Breaks 1,400—What’s Next?To be honest, I’m surprised the stock market has been so strong; the S&P 500 Index broke 1,400 so quickly. It’s amazing to me that after a mediocre earnings season, when earnings expectations were revised lower, the stock market has been able to rise. Two reasons stand out for the breakout—a little more certainty regarding the ability of eurozone policymakers to take action to protect the euro, and genuine hope … Read More

Stock Market Trading Action Signals Breakout Coming

By Monday, July 30, 2012

Stock Market Trading ActionEver since the beginning of June, when the stock market came out of its correction, there has been seesaw-trading action with three meaningful peaks and valleys in the S&P 500 Index. We’re now working on the fourth, and who knows where it will lead.

Expectations for corporate profits continue to come down, and any positive investor sentiment is likely due to the lingering hope for additional monetary stimulus from the … Read More

Stock Market Correction: Why it’s Limited

By Wednesday, May 16, 2012

earnings seasonsUnless we get a major shock like war or something related to the sovereign debt crisis in Europe, I don’t think the stock market is going to experience a lot of further downside. Stock prices might drift and then trade range-bound for a couple more months, but stock market valuations are fair and this provides a lot of cushion.

I do think there is more downside potential in gold, silver … Read More

Stock Market Correction’s Here—Put Dividend Paying Stocks on Your Radar Screen

By Wednesday, May 9, 2012

earnings seasonThis is the correction we’ve been expecting and it’s affecting stocks as well as commodities. The stock market has been due for a correction after a solid first-quarter earnings season and, because share prices moved so strongly since the beginning of the year. It doesn’t really matter what the catalyst is for the correction; it is well-deserved and a healthy development in my view.

I think the S&P 500 Index … Read More

The Equity Market Can Handle Slow
Growth—Just Not a Contraction

By Friday, May 4, 2012

Equity Market Can Handle Slow GrowthIf the S&P 500 Index is trading close to the 1,400 level, then I view the equity market as being in good shape. We’re getting a bit of a consolidation now and this is completely normal after the flurry of corporate earnings from large-cap companies. Many smaller companies are only now beginning to report their earnings reports, but this is an equity market that’s focused on large-caps. They have been … Read More

The Stock Market’s Near-term
Trend Is That There Isn’t One

By Thursday, May 3, 2012

economic newsI have a strong sense that the stock market trading action we’ve experienced over the last several months will continue over the next quarter or so. One day, the stock market will be up on some positive economic news; the next day, the economic news will point the other way. The stock market is at its current level largely due to two equal factors—the Federal Reserve and reasonable valuations. At … Read More