One of Our Better Tools We’ve got a tool we rely on here at Mullooly Asset Management called “relative strength.” This tool simply tells us which investments are moving faster than the entire market, or moving slower than the entire market. Pretty powerful tool! That’s important – if we want to beat the market, we… [Read More] Relative Strength is One of the Better Tools
The two big questions around my house these days are: 1. What kind of Halloween candy will we be giving out this year? 2. When EXACTLY do we change the clocks again? But the big question around the office is, “what will the Federal Reserve do on Halloween?” The Federal Reserve meets this week. At… [Read More] Federal Reserve to Cut Rates : Is it the Truth?
Friday the market was down 370 points (2.7%). It also happened to coincide with the 20th anniversary of the 1987 market crash. There are gigantic differences between the market in 1987 and the market in 2007. In 1987, inflation was 5%, long-term interest rates were at 10%, and the S&P 500 was more than 30%… [Read More] 1987 Market Crash and Current Market
The stock market has been discounting (marking down the price) of Wall Street brokers and banks since May. The charts of all of these stocks began to turn down in the spring. We really didn’t have any news why this was happening! The sector became unfavored, and sell signals were appearing on every chart in… [Read More] Point and Figure Charts Are the Place to Look, Not the News
Friday morning, October 5, the Vice Chairman of the Federal Reserve Board (Donald Kohn) was quoted as saying “a one half point rate cut may be enough.” That headline sent the bond market into a tailspin. But wait, here’s the entire quote: “But pending further evidence, a 50 basis point easing was not an unreasonable… [Read More] Point and Figure Charts Depict What Is Actually Going On In the Market
One of the best tools we have at our disposal is something called “relative strength.” Look, you can’t beat the market, unless the investments you own ARE beating the market. In other words, hanging onto something “just because” will always drag down your overall performance. We should not get “married” to a stock. Relative strength… [Read More] Relative Strength Can Help You Beat The Market