Stock Indices

At what appears to be the completion of an outstanding bull market for equities, it is appropriate to review our checklist for a top.

What hope can there be for motivated stock pickers to outperform the low-cost index funds that simply mechanically track the market? Well - in spite of the absurd rise of the Nobel-acclaimed, and highly promoted, Efficient Market Hypothesis that claims that individual investors can't beat the market - it turns out there is plenty! [Let me explain.] Words: 1574

A crash in stocks is coming - it’s going to horrific - and smart investors will use it to make literal fortunes from it.

The bull market put in a positive twist this week after the French elections over the weekend. Before even reaching our minimum downside targets for this downtrend markets worldwide gapped up on Monday, continued higher on Tuesday, and then stalled at higher levels for the rest of the week. This activity has created a temporary bifurcation between the US cyclicals and tech sectors.

9 years ago, Warren Buffett made a $500,000 bet that a simple index fund would outperform an actively managed hedge fund run by expert investors and it did for one or more of the 3 reasons outlined in this insightful article.

When Trump fails to reverse the global trend...that is when the stock market starts to rise for reasons that will confuse most. This is not the “Trump Rally” but the collapse in public confidence rally.

We see a run to the 1929-esque peak of 2,800 for the S&P 500 as a possibility and a bubble of that magnitude would likely be followed by a Newtonian reaction and we could see a crash that would lead to the scenario we outlined above...

Momentum is one of the most misunderstood concepts in the investment world but few people grasp how much it impacts the markets - in both directions.

The U.S. stock market today has never been more dangerous and overvalued, according to respected Wall Street market analyst John Hussman and, as such, it is prudent to reduce allocations to stocks and bonds and increase allocations to physical gold.

The Dow rose 1.8% in January 2017 and 3.3% in February. In the 27 times since 1945 when the Dow has gone up in each of the first two months of the year, the average gain for the entire year was 19.9%.