By Mitchell Clark, B.Comm. | January 22, 2014
The Dow Jones Transportation Average is still very close to its all-time high, and so are countless component companies. The airlines, in particular, have been very strong in a classic bull market breakout performance. Many of these stocks have roughly doubled over the last 12 months.
Commensurate with continued strength in the Russell 2000 index of small-cap stocks and year-to-date outperformance of the NASDAQ Composite, this is still a very … Read More
By Mitchell Clark, B.Comm. | July 29, 2013
It is earnings season and corporate numbers are plentiful. Blue chips are mostly reporting decent financial metrics, but I want to address the other side of the equation.
Investment risk in many capital market assets is still very high. And the reason why it’s very high is the fiscal and monetary experiments taking place around the world.
PepsiCo, Inc. (PEP) announced another good quarter that beat expectations, and while the … Read More
By Mitchell Clark, B.Comm. | May 29, 2013
Something big happened at the beginning of the year—Wall Street gave up on Washington.
I’ve been trying to figure out how this incredible stock market action started at the beginning of the year. Things were trending fairly normally, and then institutional investors just started buying—blue chips first, a little break in February, then blue chips again, with a broadening out into the NASDAQ.
But there wasn’t any big catalyst that … Read More
By Mitchell Clark, B.Comm. | May 17, 2013
“Opportunity cost”—it’s a phrase used in microeconomic theory to denote the costs that are forgone by not having your resources in the highest returning assets.
It is a phrase that’s pertinent to the stock market.
Without question, I remain completely taken aback by what has transpired with the stock market since the beginning of the year.
Looking at the numbers, not being invested in many corporations has been costly.
Excluding … Read More
By Mitchell Clark, B.Comm. | April 24, 2013
The stock market is close to double-digit growth so far this year, as corporations continue to report modest earnings results.
Playing a market at an all-time high is tough. It makes me think a lot more about risk, portfolio strategy, and how to consider new positions—if any at all.
As a stock market investor/speculator, here are five motivations to keep in mind:
When you buy one share of … Read More
By Mitchell Clark, B.Comm. | April 10, 2013
It is absolutely critical that you evaluate all your holdings for risk.
The U.S. stock market needs to correct, but the sovereign debt crisis in Europe and the euro currency together remain a festering powder keg.
The real problem for the euro is the lack of leadership—in banking and politics—in the region. There is no flexibility in the euro currency to help those countries in need.
The failure of decisive … Read More
By Mitchell Clark, B.Comm. | March 11, 2013
When the U.S. equities market crashes, most foreign stocks do as well. But when it comes to capital appreciation, the correlation ends. Domestic Chinese stocks experienced a small resurgence lately, but they are still well down from their peak in 2007. China is still very much an emerging market, but several other emerging markets are doing much better. These economies are experiencing growth in domestic demand and are also selling … Read More