Indicators turn positive. Here’s the deal: if you’re aggressive, it’s time to start dipping a toe back in the water. Often, what starts out as a short term thing turns into a long term event (kind of like moving from dating to marriage, right?). But beware, we may have to un-do everything — in short… [Read More] Stock Market Whipsaw
I’m not an economist (thank goodness!), but it’s just my opinion that episodes like what happened in 1998 (and even in 2001 and in 2002) — when the Fed stepped in and changed interest rates — were more situations of market “liquidity” issues. What’s happening now seems to be more an issue of “solvency” —… [Read More] Investing Money: The Indicators Will Decide
Market bottom? Probably not. But the Federal Reserve is awake. The Fed stepped in a week ago, and injected liquidity in the financial system. But wait: they didn’t buy Treasury Bills (like they often do). They bought mortgage-backed securities. Weird. Look, the Fed made “emergency moves” in the midst of a currency crisis and the… [Read More] Market Bottom?
On Friday, the Federal Reserve cut the discount rate by a 1/2 pt. They cut the discount rate — NOT the Fed Funds rate. Understand, the discount rate is the rate banks and brokers are charged to borrow from the Fed. This doesn’t change rates you and I are charged. The Fed believes the “pressure”… [Read More] How Does the Discount Rate Being Cut Effect Investors?
Football coaches never predict the outcome — they expect to win! The coach runs the best plays he can, when he’s got the ball. And when he doesn’t have the ball, he sends the defensive team onto the field. And so it should be with your investments. Trying to predict (guess) where the market will… [Read More] Wealth Preservation vs Losing Money
The market may be putting in a short term bottom here. That’s great news for traders, not so hot if you are longer term, like most folks. The short-term indicators I use, like the NYSE Hi-Lo Index and the NYSE 10-week moving average have reached pretty washed out (sometimes called “over-sold”) levels. The risk, for… [Read More] A Short Term Bottom Could Be Dangerous