Tuesday , October 22 2019
Home / Tag Archives: The Stock Market

Tag Archives: The Stock Market

Don’t Be Another Wall Street Chump

  The Future and the Past Securities and Exchange Commission Rule 156 requires financial institutions to advise investors to not be idiots. Hence, the disclosure pages of nearly every financial instrument in the U.S. are embedded with the following admission or variant thereof: “Past Performance Is Not Indicative of Future Results” “Buy and hold”… “The market goes always up”… “No-one can time the market”… “Buy the dip” “With what? You...

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Will the Nikkei Win the Next Olympic Games?

    Listless Nikkei On 24 July 2020 the Olympic Summer Games will begin in Tokyo, the capital of Japan. Olympic Games and Soccer World Cups are among the largest sporting events in the world.  Do you perhaps also think that these events may affect the performance of local stock markets? Olympic Summer Games 2020 – official logo (left), and a fan-made logo (right) by designer Daren Newman [PT] Let us examine whether and in what way...

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Rising Stock Market Volatility – Another Warning Sign

  Bad Hair Days Are Back We recently discussed the many divergences between major US indexes, which led us to expect that a downturn in the stock market was close (see The Calm Before the Storm for details). Here is an update of the comparison chart we showed at the time: The divergences between various indexes seem to be resolving as expected. The next chart shows analogous divergences between the S&P 500 Index and two major...

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Global Stock Markets: Danger Lies Directly Ahead

    A Global Pattern You are no doubt aware of the saying “sell in May and go away”. It is one of the best-known and oldest stock market truisms. Mark Twain’s famous saying about stock market speculation (the other one was “There are two times in a man’s life when he should not speculate – when he cannot afford it, and when he can”).  From a seasonal perspective he was definitely right about September and October. [PT] The saying is...

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Do You Hear a Bell Ringing?

  Do You Hear a Bell Ringing? The sun shines brightest across the North American continent as we enter summer’s dog days.  Cold sweet lemonade is the refreshment of choice at ballparks and swimming holes alike.  Many people drink it after cutting the grass, or whenever else a respite from the heat and some thirst quenching satisfaction is needed. Regardless of whether companies were able to “beat estimates” (which as often happens,...

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Scientific Long-Term Study Confirms: Seasonality is the Best Investment Strategy!

  A Pleasant Surprise You can probably imagine that I am convinced of the merits of seasonality. However, even I was surprised that an investment strategy based on seasonality is apparently leaving numerous far more popular strategies in the dust. And yet, this is exactly what a recent comprehensive scientific study asserts – a study that probably considers a longer time span than most: it examines up to 217 years of market history! A...

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The Calm Before the Storm

  Intra-Market Divergences Galore  US big cap stocks have rallied to new highs in recent months, but just as in the rally from the low of the February 2018 mini-panic to the September/October 2018 peak, sizable divergences between different indexes have emerged in the process. New highs in the big cap indexes (DJIA, SPX, NDX) are once again not confirmed by small caps (RUT), the broad market (NYA) and a number of sub-sectors (such as...

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Rick Rule on Investing in Junior Resource Stocks

  Maurice Jackson Interviews Rick Rule Rick Rule is a renowned investor in junior resource stocks. He is currently working for Sprott USA. Recently Maurice Jackson of Proven and Probable sat down with him for an extensive interview which you can watch below. Rick Rule, legendary resource stock investor We found this interview quite enlightening and it is probably useful to anyone investing in the junior mining space. Since gold...

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How Do Stock Prices React to Rate Cuts by the Fed?

    The “Greatest Economy in History” Stumbles “This is the greatest economy in the history of our country”, Donald Trump opined just a few months ago. Alas, recently there is growing evidence of an economic slowdown. The Morgan Stanley MSBCI business conditions gauge plummets to its lowest level since 2008, as recent economic data releases ominously persist in disappointing. [PT] This has fueled speculation of imminent rate cuts by...

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The Ugly End of Globalization

  The Ugly End of Globalization Sometime in the fall of 2018 a lowly gofer at the New York Stock Exchange was sweating  bullets.  He had made an honest mistake.  One that could forever tag him a buffoon. Art Cashin the living hat-stand, going through a succession of DJIA milestone hats. He promised was going to crack a smile for the Dow 27,000 hat photo, alas, it was not to be. [PT] After trading sideways for most of the spring, the...

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