As we discussed earlier, heading into the third quarter earnings season, we have above average level of positive guidance in terms of both top line sales and earnings as well as lower-than-average negative earnings guidance. We pointed out yesterday, however, that an uncomfortable portion of that guidance is driven by gains from a weak dollar […]
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Goldman Sachs CEO shares his view the current stock market is unnerving, and we explain why he probably things that.
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The major equity indices are struggling.Today the Nasdaq posted its third consecutive down Today the Nasdaq posted its third consecutive down day after last Friday’s close marked the fourth consecutive down week for the index. This is now its longest losing streak since May 2016 with only one-third of Nasdaq stocks trading above their 50-day moving averages […]
read more »The markets have had quite the run-up based on the assumption that this time things are different with Trump in the White House, but sky-high valuations make sense and economic realities, such as an aging population, are no anchor.
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An article in the WSJ today reminded me of Bob Farrell’s rule #5: The public buys the most at the top and the least at the bottom. Eight years into the bull market with more than a tripling of the major indices and the retail investor has decided to jump in with both feet, plowing […]
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As the stock market continues to melt higher, our weekend reading turned up two charts that add to our already increasingly cautious view in the near-term stock market.
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This morning I was on Varney and Company on Fox Business talking about the impressive run-up in U.S. stock indices. While we were on air, the U.S. markets opened and shortly thereafter the Dow broke to new highs at 20,700. Only one other president in history has seen such remarkable gains since their election. After […]
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Economic data has been coming in more positive lately, which has led some to get a wee snarky with yours truly over my finger-wagging warnings that the market is exceptionally pricey. Ok then, game on! The chart below is the Economic Research Institute’s Weekly Leading Index, which according to ECRI, “has a moderate lead over […]
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Investors as a group are notorious for chasing returns, which means everyone piles into whatever has been working best lately and more often than not tends to be late to the party. The catch this time around is whatever has been working best lately is whatever has gone up in price the most. All this […]
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This morning the S&P 500 reached $20 trillion in market cap for the first time in history even though investors have been flocking out of active management funds and into passive ones, such as exchange traded funds (ETFs), at an accelerating rate. This is typically the behavior we see nearing market tops. As markets move […]
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