I’m going to paint a word picture for you. Suppose you own a stock that gave three successive buy signals last summer — in 2007. The stock ran from $28 per share up to $34 a share. Sounds good so far, right? But the stock then broke through the support line, was already on a… [Read More] Listen to the Sell Signal: Are Media Darlings Worth It?
This article could be titled: Can (fill in the blank) go any lower? I’m not picking on Merck. The reality is you could drop in Merck, Citibank, General Motors, Ford, J.P. Morgan, along with most other names in the Dow Jones Industrial Average (and most of the largest names in the S&P 500) and ask… [Read More] Your Stock Investment Can Always Go Lower, Just Ask Merck
Do you remember the television program, “Who wants to be a Millionaire“?The show was actually featured in a terrific book “The Wisdom of Crowds” by James Suriowiecki. If you remember, the contestants were given three “lifelines” to help them. The first lifeline was the “50/50,” where two of the four possible answers were eliminated. So,… [Read More] The Stock Market : Can We Trust the Crowd?
All these firms hold the same investments. There is STILL considerable risk in the group. Why did this happen to just Bear Stearns? One of the first things I learned about investments was when it comes to bonds, think chocolate and vanilla, super simple: when interest rates rise, bond prices (values) go down. And when… [Read More] Value of Bonds : Goldman Stearns and Lehman Sachs
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
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