Many people missed the market’s enormous appreciation during the latest equity bull market because they were late to the game or chose to sit on the sidelines. If you’re one of those people on the sidelines who has been debating whether to get your feet wet in today’s market—now could be your chance. Citigroup says there’s roughly a 90% chance markets could move higher over the next six months—and a 97% chance over the next year—according to historical data. On average, the market bounces 8.9% the following six months and 17.3% the following year. Words: 1292
July 11th, 2011 | Posted in Economic Overview,Economy | Read More »
Most first quarter 2011 earnings reports are in and…over three-quarters exceeded expectations… [with] results showing a desirable combination of growing revenues, profitability and cash flow … [As such,] today’s stock market valuations are conservative compared to typical bull markets accompanied by investor enthusiasm. In the past, using 2011′s estimated earnings, the average P/E ratio could easily be 15 and…that would put the Dow Jones Industrial Average (DJIA) at 15,000 today – about 20% above today’s level. [Were we to] add in high optimism like the kind we’ve seen in other investments recently, a 20 P/E ratio would be possible – and the DJIA would be 20,000 – 60% higher [than it is today! Let's take a look at the possibility.] Words: 540
May 20th, 2011 | Posted in Investing,Stock Indices | Read More »
While gold is slightly more volatile than the Dow 30, on average, all of the individual components are more volatile than gold and only half are less volatile than silver and platinum. [So much for] the prevailing myth…that they are risky investments due to their volatility. [Let's take a closer look at the specifics.] Words: 250
May 7th, 2011 | Posted in Asset Allocation,Investing | Read More »
The Dow:Gold ratio is defined as the ratio of the price of the Dow Jones Industrial Average divided by the price of gold [or] how many ounces of gold it takes to buy the 30-stock Dow. The current Dow:Gold ratio of 8.5 is up 21.1% from its 17-year March 6, 2009 low of 7.0 and 81% below its 1999 peak of 44.77. [What does the future hold? Higher gold prices, lower stock prices or vice versa?] Words: 400
March 31st, 2011 | Posted in Asset Allocation,Investing | Read More »
The Dow Jones Industrial Average (DJIA) Index – the oldest stock exchange in the U.S. and most influential in the world – consists of 30 companies and has an extremely interesting and distressing history regarding its beginnings, transformation and structural development which has all the trappings of what is commonly referred to as pyramid or Ponzi scheme. Words: 1233
January 12th, 2011 | Posted in Investing,Stock Indices | Read More »
My technical analyses of the future direction of the U.S. dollar, the price of gold and the American and Chinese stock markets suggest that the near term should be somewhat choppy but with a favorable upward bias for gold and the markets. Let me illustrate my findings with the following charts and explanations. Words: 965
December 6th, 2010 | Posted in Gold/Silver,Investing,Stock Indices | Read More »
Investors have a short memory, in 1995, the DJIA was around 4000. Today our economy, it could be argued, is actually weaker than it was back then. Words: 427
February 15th, 2010 | Posted in Stock Indices | Read More »
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