Stock Market Analysis
The current initial public offering (IPO) market in some circumstances reminds me of the glory days back in 1999 and 2000; when newly minted technology stocks with little business surged to superlative heights driven by euphoric frenzy buying. While the valuation back then was far more out-of-whack than currently, there are situations now that leave me shaking my head and wondering what just happened, even after I do a thorough. Read More
When I look at the stock market, I am worried. I see investors behaving like they do when markets are at their peaks or forming a top. I see irrationality, extreme valuations, and too much optimism among investors.Investors Buying Everything and Anything?Do investors really care about what they are buying these days when it comes to stocks? In just the last few months, I have seen companies do. Read More
Stock Market Poised for Crash?Admittedly, with the S&P 500 and Dow Jones Industrial Average trading at record-highs, the idea of a stock market crash isn’t garnering much attention. But despite the euphoria on Wall Street, the pieces necessary for a crash are in place.And investors need to know how to protect themselves from an impending stock market crash. Because if there’s one thing we know about the stock. Read More
There were no proverbial May flowers this year when it came to the stock market, with the month showing the worst decline since September 2011. The NASDAQ fell 7.19% in May and 8.54% from the end of the first quarter. The DOW, S&P 500, and Russell 2000 lost over six percent in May. The DOW is up a mere 1.49% for the trailing 12 months, but will likely see a. Read More
Here’s how the fable goes…Jim is in the boardroom talking to his three young analysts about where the mutual fund they manage should place its billions of cash, as the firm recently exited some equity positions.“Where are we going to park those couple of billion we have raised?” Jim asks of the young analysts.Bobby says, “Let’s not buy bank issued CDs. Banks really haven’t come clean with. Read More
For the most part, good timing results in the majority of your investment returns, whether you’re investing in the broader stock market or in a specific market sector. The problem, of course, is that nobody can predict the future and trying to time the stock market is extremely difficult. (See The Best Stock Market Advice I Know: Get Ahead of the Business Cycle.)
As we all know, this is a very difficult stock market in which to make investments, based on major trends in the global economy. And, even if you identify, research and feel confident about an investment theme or trend on which to speculate, outside shocks like the eurozone debt crisis can blindside your holdings. Without question, the current environment continues to be a difficult one for stock market investors.
It’s a crazy trading environment out there. Whether you are in bank stocks, gold stocks, silver stocks, or even cyclical stocks, the stock market risk is high at this time, as we just completed a volatile week of trading. The European debt crisis is keeping buyers on the sidelines and waiting for something magical to happen. The economic recovery is showing improvement here, but, with a high unemployment rate and declining home prices, it will continue to be a difficult path.