We've been saying for months to avoid real estate, financial, insurance, banking, and brokers. This past week, all of these sectors were taken behind the woodshed and slapped silly again. See, when you add up all of these sectors, we're talking about a group that...
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!...
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...
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...
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...
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...
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...
The big reason why the stock market fell apart this summer was because the financial stocks -- the brokerage firms in particular -- really struggled. We're just learning these firms held a LOT of mortgage loans in their portfolio. And there's really no accurate way to...
Let's talk about "inside information" and the stock market. At some point we have to come to this realization: we're never going to have complete information -- EVER -- when it comes to a particular stock or investment. There will always -- I repeat, always -- be...
Do you get your news -- your investment ideas -- from the news? The media -- meaning, newspapers and magazines and financial channels all report what HAS happened. And then they try to -- painfully -- predict what WILL happen in the future. Look, the "predicting"...
