Textbook Consolidation Ends
Late last month, I wrote a piece concluding that stocks looked a bit tired at all time highs. Nothing terribly damaging, but they were in need of some rest. Routine, normal and healthy pullbacks can come in different forms. The easiest way for stocks to digest is to decline 2-5% fairly quickly, while another way is to see sideways movement with a slightly downward tilt for a period of weeks. The Dow Jones, S&P 500 and Nasdaq 100 all saw […]
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Date: September 19, 2014
Headwinds Abound This Week
Almost all markets finished on a sour note last week and that spilled over to begin the new week. While I have written about stocks needing a short-term breather, I was surprised that treasury bonds could not get a lift as stocks weakened. In fact, both stocks and bonds peaked the same week, but bonds sold off more significantly, something that is unusual. The major stock market indices certainly look like they want at least a little rally, but the […]
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Date: September 16, 2014
More Airstrikes Announced… Markets Don’t Care
Last night, President Obama announced an expansion of the campaign against ISIS with targeted airstrikes in Syria. And as we have seen so many times over the past 10 years, the financial markets responded with a big yawn as if to say that, financially, nobody really cares. Are investors being complacent or realistic? My theory on geopolitical news is twofold. First, reaction depends on how solid a footing the markets are on. Cherry picking with the benefit of hindsight, in […]
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Date: September 11, 2014
Don’t Fall Asleep
Over the past few weeks I have written that stocks seem “tired” or “in need of a pullback or consolidation.” Remember, stock market digestion can occur two different ways; one by price declining 2-5% or price simply moves sideways for an extended period. Right now, it looks like we are getting the latter as the S&P 500 has essentially gone nowhere for more than two weeks. While all this boredom was occurring, we had a weak employment report, Russia/Ukraine cease […]
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Date: September 8, 2014
Beware the Ominous September… or not
Each year at this time, we hear the pundits roll out the ominous stats regarding the stock market’s performance for September. “It’s the worst month of the year.” “Be careful.” “Do some selling.” Those sound an awful lot like “Sell in May and Go Away.” The thing about compiling market stats is that over decades and decades the averages tend to really smooth out. Additionally, much depends on when you begin and end your study. Further, if you add enough […]
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Date: September 2, 2014
Happy Labor Day!
As we say goodbye to the unofficial end of summer, this Labor Day remember those who helped build our great country and celebrate the achievements of the American workforce. Wishing you a safe and enjoyable Labor Day filled with family, friends and cookouts! Heritage Capital LLC
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Date: August 31, 2014
Stocks Looking a Little Tired
The bull market remains alive and reasonably healthy. I am still long-term bullish. I am still fairly bullish over the intermediate-term. With that out of the way, stocks are looking a little weary at all time highs, which should not be totally unexpected. The market has powered higher all month and started to struggle a bit of late. At least for now, I think risk equals reward or perhaps even slightly outweighs reward. To refresh the rally, stocks can either […]
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Date: August 27, 2014
Treasuries Sneak Quietly into Favor
As you know, I have been a treasury bond bull almost all year, putting me squarely in the severe minority camp. 2014 began with the masses all forecasting much higher interest rates across the spectrum. Astute investors know that the masses are usually wrong, especially at major turning points. Jeff Benjamin from Investment News continues to listen to my usually contrarian side of investing and wrote a great article which you can click on below. Keep in mind that this […]
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Date: August 22, 2014
The Fed has It Wrong with the Taper
This is certainly not new news for my readers, but I continue to be in the very lonely camp that the Fed is misguided in tapering the $85 billion in monthly bond purchases and they should totally hold off raising interest rates until our economy gets to the other side of the next recession. As you know, we have been in the slow growth and no inflation camp for years, a theme we still have a high degree of confidence […]
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Date: August 19, 2014
Rumors of the US Dollar’s Demise Have Been Much Exaggerated
The second segment I did on Yahoo Finance last Thursday was not a new one for long time readers. As many of you know, I turned very positive on the US Dollar right about the time Bear Sterns needed a bailout in March 2008. That was long before any QE (money printing) began. Historically, the dollar spent most of its life oscillating between 80 and 120 on the US Dollar Index, an index containing a basket of currencies with the […]
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Date: August 18, 2014
