The line heard in every economic recession, and every single stock market pullback is: this time it’s different. Which is usually one of the single best indicators to tell you that the market is putting a bottom in place, and we can only expect the market to move up from here. And best of all,… [Read More] Stock Market: Where Jim Cramer and I Have Different Views
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?
There was an article distributed nationwide, written by the Associated Press, and carried locally in the Asbury Park Press on March 22, 2008. I’ve re-printed the article here, but dropped in my own comments after each paragraph. The main point to take away from this exercise is that by the time news reaches Main Street,… [Read More] Is this Stock Market Recession Worse Than Expected?
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