Stock Indices

The DAX is a German blue-chip stock index made up of the 30 largest German companies making it, essentially, the German equivalent of the Dow Jones Industrial Average.

This index is one of the most frequently followed equity indicators as many traders consider it the best depiction of the U.S. stock market. 

As investors, we can form expectations of the future based on a number of factors and adjust our risk and investment thesis as we learn more and as the analyses below show, IF mean reversion occurs in price and valuations, then our expectations should be for losses over the coming 10 years. The analyses below offer substantial clues.

Founded in 1984, the Russell 2000 is a small-cap index representing about 8% of the total market profit of the Russell 3000 index and is weighted according to market capitalization. The index is broken down as follows:

As can be seen from the above analysis the DJIA moves opposite to the direction of the GOR so it is imperative to watch the GOR as it provides a very reliable indicator of the direction the DJIA is about to embark on.

The Q Ratio, the total price of the market divided by the replacement cost of all its companies, is a popular method of estimating the fair value of the stock market and it illustrates the secular trend toward higher valuations.

...Today’s infographic comes to us from Fisher Investments, and it describes the anatomy of market corrections, while also visualizing much of the data around these common events....

This is a critical point for investors and, while it's difficult to know what's in store for any coming decade, it's not impossible to know. This article explores the accuracy and reliability of 10-year forecasts and offers one of its own.

I know, I know, no one likes the bearer of bad news — especially when it comes to stock prices - but someone needs to remind you what usually happens to stocks when the Fed raises rates so it might as well be me. They drop. Let me explain.

Whether you are a businessman or an ordinary citizen concerned about what’s going on in the world, the yield curve is something you should care about as it is probably the single best indicator of an upcoming recession and where the markets are headed.