S&P 500

How to Invest After Black Monday

By Saturday, August 29, 2015
Invest After Black FridayLike dominos, the global markets plunged on Monday, sparked by concerns about the health of China’s economy. In the wake of the worldwide sell-off, many nervous investors are wondering how they should invest after Black Monday. Global Markets Plummet on Black Monday Even investors know how influential social media is. On Monday, August 24th, China’s Xinhua TV announced “Black Monday,” via Twitter nonetheless, that “China joins global panic selloff, dive .

Robert Shiller: Dow Jones Industrial Average Could Crash 30%

By Friday, August 28, 2015
Dow Jones Industrial Average Could CrashAfter Wall Street’s spectacular meltdown last week, Nobel laureate Robert Shiller is ready to forecast a full-blown stock market crash. Although second-quarter gross domestic product (GDP) growth was revised up from 2.3% to 3.3%, equities are chronically overvalued and need a massive sell-off before they fall in line with reality. (Source: The Wall Street Journal, August 27, 2015.) The panic began on Monday, August 17th, when the S&P 500 .

Stock Market: Two Charts That Spell Disaster Ahead

By Monday, August 24, 2015
Stock MarketFor years, the correlation between copper prices and the stock market has been a reliable leading indicator of where stock prices are headed. The chart below plots daily copper prices (brown line), the S&P 500 (green line), and the correlation between the two (black line at the bottom of the chart) going all the way back to 2002. Please pay attention to the red arrows. S&P 500 Large Cap Index Chart Chart courtesy of www.StockCharts.com What’s .

Stock Market: Three Reasons Why It’s About to Get a Whole Lot Worse

By Monday, August 17, 2015
Stock MarketThe downside momentum in the U.S. stock market is gaining traction. And unless the Federal Reserve does a complete about-face and launches QE4, the sell-off in stocks that started in mid-May of this year will accelerate. Today, I present three very strong arguments for lower stock prices. First, looking at the chart below, you will see the Dow Jones Industrial Average has been trading below its 50-week moving average for .

Gold Investing: China Devaluation Could Send Gold to $5,000

By Saturday, August 15, 2015
Gold InvestingDespite a few years of weak gold prices, China’s currency depreciation could be the tipping point that drives gold above $5,000. The yellow metal skyrocketed between 2001 and 2011, and another decade of similar growth is not unfeasible. Let me explain. A series of events in China have me convinced that gold prices are set to explode. The yellow metal has lost more than 40% since peaking near $1,900 in .

Best Technology Stocks: Three Tech Stocks with Great Potential in 2015

By Monday, August 10, 2015
Tech Stocks 2015 The U.S. stock markets have experienced two strong years of back-to-back gains; the S&P 500 soared approximately 30% in 2013 and a solid 13% in 2014; and the Dow Jones Industrial Average recently topped 18,000 for the first time ever. With the Federal Reserve expected to barely increase interest rates in the second half of 2015, the stock market looks to be the investment of choice for income-starved investors this .

Stock Market Top: Three Things Investors Need to Know About It

By Friday, August 7, 2015
Stock Market: Broad Market Sell-Off Here No matter how you look at it, the U.S. stock market is a dangerous place to be right now. In the chart below of the Dow Jones Industrial Average, pay attention to the circled area.

Corporate Earnings: Second Quarter 2015 Worst Since 2009

By Friday, July 31, 2015
Corporate EarningsAs of July 24, 187 companies in the S&P 500 have reported their corporate earnings. For these 187 companies, their average decline in earnings has been 2.2%. If this is the final number, then it will be the biggest decline in quarterly earnings for the S&P 500 since 2009. (Source: FactSet, July 24, 2015.) But it may get worse. Only one-third of the companies in the S&P 500 have reported .

S&P 500: Here’s Why the Stock Market is Soaring Today

By Monday, July 13, 2015
Stock Market is Soaring TodayWall Street rose on Monday, July 13th, as Greece and its creditors strike a deal to move forward with a third bailout loan to avert their financial crisis. European stocks climbed on Monday after eurozone leaders announced a deal to provide a loan to keep Greece solvent. While the Athens stock market has been closed since June 26th, U.S.-listed Greek equity assets surged by over 10% in pre-market trade. The .

Stock Market: Why You Shouldn’t Be Fully Invested in It

By Friday, July 10, 2015
Stock MarketHistory has taught us that a stock market top occurs when there’s euphoria among investors. We have seen this over and over again. And you don’t need to go too far back in history to see it in the making. Just look at the current collapse in the price of Chinese stocks. Stock Market Top in China Chinese stocks had a solid run to the upside on the backdrop of .
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: 200% Profit on the Ultimate "Fear Gauge" Play

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