Wow, this bull stock market has just headed due north since the election, hasn’t it? One record is broken and another set with regularity. I know this doesn’t sound too positive, but it’s starting to remind me a bit of the year 2000 when stock prices were receiving full benefit of a doubt. […]
Hi friends. I’ll leave the question posed in the title of this week’s post for you to ponder. I certainly have my own opinion.
I’ll share some recent August articles from the managing editor of Yahoo Finance, Sam Ro, with regard to the reasonableness of the continuing strength of the major U.S. stock indices. […]
Happy New Year, friends.
It has not exactly been a friendly start to the new year for stocks.
Across the first 10 trading days of the year, the major indices have done as follows:
Dow Jones Index dropped from 17,425 to 15,988, a decline of over 8.2%
Standard & Poor Index dropped from 2,044 to 1,880, a decline of over 8.0%
The Nasdaq dropped from 5,007 to 4,488, a decline of over almost 10.4%
Yes, it has been a really tough start to 2016 for stockholders. In fact, it is the worst start to a year ever. See this article.
I’ll share a couple of additional interesting articles concerning the backdrop for this market decline. Go here for an article from yesterday that discusses key factors driving market fears, factors including oil, China, the dollar, and credit market and Fed uncertainties.
Go here for an article from January 7, 2016, that discusses how the average stock is already in a bear market (note, this article is before the 2nd difficult down week of January, so indices were actually a good deal higher the morning of Thursday, January 7, when the article was recorded).
I’ve shared in prior blog posts how that a large number of companies failed to participate significantly in the so-called bull market of recent years. The last article highlights this fact. An acronym for four stocks, FANG, stands out today to refer the strong roles Facebook, Amazon, Netflix, and Google have played in recent times in driving the market ahead while at the same time backbone commodity companies working in oil and gas, gold and silver and copper, etc., were literally decimated.
There’s a lot of indiscriminate selling going on of late, probably exacerbated by investors receiving margin calls. There are some […]
This is a question I’m receiving a lot lately and, frankly, a question worth pondering. I’ve never read about anyone who consistently (time and time again) has correctly predicted the end of bull or bear markets, or even consistently predicted the timing of temporary market corrections. Far be it from me to attempt to do so. Many people got out of the stock market near the lows of late 2008 and early 2009 and have missed one of the largest market increases since then in the history of the stock market. Emotions tend to make investors “react” and thereby “act” at just the wrong times.
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Since my book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns,” was released in early October, I’ve received a number of e-mails from readers. Some of these e-mails have included questions about different issues and I’ve attempted to answer each question received. One person, Al, who wrote me recently, suggested that I share some of the questions and answers I receive. I thought it was a great suggestion and am doing just that through this post, and several posts which will follow in coming weeks.
Arthur and John observed that my Finviz screen provided in the book presently only reveals a few stocks which pass the screen and are left to evaluate using my Adjusted Floor Price Scorecard. Arthur was pondering relaxing some of my criteria in order to reveal more stock candidates. John wonders if we are in a period of excessive risk-taking in the market, thus leaving fewer and fewer low-priced stocks.
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