Sell The News
Not much has changed in the stock market since last week as volatility continues to be historically low. While the S&P 500 poked above the recent range on Friday, the rest of the major indices weren’t exactly in line. That’s not a big deal. Small caps looked like they were getting ready to step up, but we haven’t seen signs of confirmation just yet. Two things I did find interesting were the April employment report, released on Friday as well […]
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Date: May 8, 2017
Chicken Little is Alive and Well
In Friday morning’s piece, The “All-Important” Jobs Report, I discussed that it’s much more important to watch how the markets react to the news rather than what the actual news is. The jobs report was abysmal and the media reacted in kind by rolling out every bearish economist to let us know that the economy was as weak as anytime since 2009. Market strategists also responded as expected with the same wrong calls for a major correction and new bear […]
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Date: June 8, 2016
The “All-Important” Jobs Report
Another new month, another employment report. As usual, the media is hyping this to the Nth degree as a clue to what the Fed is going to do with interest rates later this month. I learned very early on that economic reports and earnings and geopolitical news don’t really matter. It’s how the markets REACT to the news that’s really important. In October 2000, companies started reporting very solid earnings, but stocks fell sharply day after day in what became […]
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Date: June 3, 2016
Another “V” for the Bulls… Must Run from Here
As I have written before, since mid 2012 the stock market has seen more “V” bottoms than in all previous years combined. “V” bottoms went from being very rare to becoming the norm. With each successive low, investors are changing their buying behavior to accept the “new” behavior as the norm. In my view, this is setting up the masses for yet another 2000-2002 or 2008 style wealth decimation. So now that we have yet another confirmed “V” bottom, which […]
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Date: January 9, 2015
Economy “Booming”
288,000 NEW jobs created in April. Unemployment rate plummets to “only” 6.3%. The U.S. economy is back! Does it feel like that to you or your friends? My thesis since the crisis began has been that post financial crisis recoveries are frustrating. They tease and tantalize on the upside but rarely deliver. GDP growth never hits “escape velocity” and unemployment remains stubbornly high. With the government printing a 6.3% that’s hard to still say “stubbornly high”. Digging into the details […]
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Date: May 3, 2014
