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Stock Market Risk

This morning, the news is full of talk about Greece. This weekend, the government there introduced capital controls in what’s looking more and more like a country on the brink of financial collapse. Greece leaving the eurozone is of importance as it opens the door for other struggling…

This market is on steroids. The Federal Reserve is the dealer and the market participants are the buyers. This is a particularly dangerous stock market risk. So it’s not a surprise to see stocks go up and up without any signs of a pending correction. You really want…

I will be first to say that this is a difficult market to play, and it’s certainly full of stock market risk. On one hand, the Dow Jones Industrial Average eclipsed a new record last week when the blue chips index surged to an all-time new record high…

We are entering the always intriguing fourth quarter, during which I expect to see some major surprises that could alter the current investment and political climates and increase the stock market risk. The Dow Jones Industrial Average and the S&P 500 have recorded four straight months of gains,…

We are at the mid-point of the year, and so far it seems like a rollercoaster ride driven by heightened stock market risk. We had a stellar January, followed by some softness in February and March. April and May, followed by losses, but we saw some oversold buying…

The stock market risk is high right now. Maybe you should take a vacation from investing. As an investor, you should be aware that the six-month period from May to October has been historically the worst-performing months for stocks, according to the Stock Trader’s Almanac. And so far,…

With only two sessions remaining in January, the month delivered strong returns in the stock market. And, while the advance has been strong to begin the year, you might recall that a similar start in 2011 ended in a mixed trading year. While investor sentiment is bullish and…

As we just completed the December meeting of the Federal Reserve, the continued market sell-off accelerated. This was following the previous week’s European Summit, which was supposed to alleviate concerns about the eurozone. Neither the Fed nor the summit in Europe changed the market view that the situation…

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…

There was a stock market correction on Wednesday following a mini rally that drove some impressive upward gains in four of five sessions. I feel there is too much relaxation in the market, with traders ignoring the higher stock market risk. Stocks dove on more uncertainties in Europe,…

October was one of the best months for the stock market in history in spite of the market risk. Everyone was buying and it didn’t matter if it was technology, industrial, or some new never-heard-before-technology. Everything went up, which is why we are now facing some selling pressure.…

Things are looking up for the economy again. Unfortunately, things are not always as they seem. The U.S. Commerce Department said that the U.S. economy grew at 2.5% in the third quarter—the fastest pace in a year. Moody’s Investor Services last week raised the corporate ratings of both…

Chinese stocks continue to be in the dumps compared to the rally in U.S. stocks. The benchmark Shanghai Composite Index (SCI) is firmly in the red this year, down 13.28%. However, the plus is that Chinese stocks are no longer trapped in a bear market. My Chinese stocks…

Here’s how the story plays out… After a 25-year to 30-year leveraging period, as the credit crisis developed in 2008, a period of great deleveraging was born. Banks, which were once all too happy to lend money to people, some of whom should have never qualified for a…

The upside potential is limited at this time. The problems are global in nature. You have the massive debt crisis in Europe and the U.S., along with deepening U.S. deficit situations. We are seeing state governments take days off here and there in order to save a few…

It’s time to rejoice; stocks have gained for two straight days! Of course, I’m kidding. The bounce has largely been due to technically oversold buying as traders try to determine whether gains are sustainable or if it is a “dead cat bounce” in a developing bear market. My…

There is optimism on Wall Street, but be careful as there is also risk. You need to understand the concept of risk management as a key element to investing success. The reason why I want to discuss risk management is my sense that there are some of you…

The S&P 500 Index has broken solidly below 1,200, and the trading action is the correction that the market’s required. I’d like the trading action to spread to commodities so investors could have another entry point. I think 1,150 seems likely on the S&P 500 index and an…

Markets appear to be stalling at the chart tops and, based on a lack of catalyst, could be heading lower. Yes, there was the breakout at the chart tops and a bullish head and shoulder formation, but the lack of stronger volume on the rallies and higher moves…