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...
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...
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...
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...
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...
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...
So...is It Too Late To Sell? No. Not too late. Most everything remains on sell signals. One of the reasons I say this is because it's harder to recover with negative numbers than positive numbers. Avoid losses whenever possible! Look, you tell me which is better:...
Is it true that high net worth investors focus only on generating the highest returns? No! The ultra-wealthy focus primarily on risk management. These people are not gamblers. The old line from Mark Twain -- you should be more concerned about the return OF your money...
I'd like to convey to you why I'm more cautious today than 99% of the brokers and advisers. We might just need a 10 minute conversation -- we could have that in a conference call, or a Web meeting, or simply over the telephone. Basically, it's a function of risk in...
Even More About The Bullish Percent Index I've been getting questions about the bullish percent index, and playing offense or defense, like "if we're on defense, will all stocks move down?" And "What if I don't want to sell these stocks? I've owned them a long time."...
