There is more than enough reason to believe that U.S. stocks are in a bear market regardless of what percentage drop has taken place. [Let's take a look at stock momentum, various moving averages, volatility and certain technical indicators to see what they have to say in this regard.] Words: 700
Read More »"Presidential Cycle" Suggests the S&P 500 Will Soar Before the End of 2011 – Here's Why
Despite the outlook for relatively weak economic growth in the near future, the S&P 500... [should rise dramatically during the next 75 days] based on historical precedent – namely, the “Presidential Cycle.” [Let's take a look at the specifics.] Words: 405
Read More »What Does Current Global Crisis Comparison with Those of '08 and '10 Mean for Stocks, Bonds, Currencies and Commodities?
How does the current behavior of the global financial markets compare with the two recent crises, namely the great financial crisis of 2008/2009 and the minor one in 2010 when the sovereign debt crisis in the eurozone developed? [I have analyzed 15 aspects of the markets and have concluded that over the next 2/3 months we should see, among other things, increased volatility, declining S&P 500 and MSCI World indices, a bottoming in the 10-year U.S. Treasuries yield, renewed U.S. dollar weakness, renewed strength in the price of gold and silver with silver outperforming that of gold. Take a look at the 19 charts below to see for yourself.] Words: 825
Read More »S&P 500: Earnings are Strong + Values are Weak = Buying Opportunity
With all the negative talk that we are consistently fed, the truth is, that corporate America is strong. The fundamentals underpinning most of our great companies warrant higher valuations than they are currently receiving. With interest rates at all-time lows, and therefore, the price of bonds at all-time highs, they are less competitive to stocks than normal. Consequently, I believe that equity valuations should be higher than normal, not lower. Therefore, I feel that now is a great time for investors to be building equity portfolios whether the market is at the total bottom or not. [Let me be more specific as to why I think that is the case.] Words: 1493
Read More »This Equity is THE Best Investment For These Volatile Times
In response to a recent request to identify the best one investment that provides acceptable growth without incurring unreasonable risk we applied our proprietary algorithms based on our unique ZYX Change Method and came up with a relatively unknown equity that warrants serious consideration for inclusion in your portfolio. Words: 454
Read More »Ron Paul: Love Him or Hate Him, His Investment Approach is a Big-time Winner!
GOP presidential contender Ron Paul has predicted nearly all of the major economic developments in recent years - the housing collapse, the plunging dollar, and the rise of precious metals - and, as such, has killed the major market averages with his approach. [In fact,] he is a master investor with a track record that would make many of the Street's top hedge funds envious! [Let's take a look at his portfolio and compare its performance to that of the S&P 500.] Words: 665
Read More »Gold is Due for a Correction BUT Long-term Prospect is Bright – Here's Why
Gold is due for a correction. It would be a non-event to see a 10 percent drop in gold and this would actually be a healthy development for markets by shaking out the short-term speculators while the long-term story remains on solid ground. [Indeed, were] gold’s relative value to return to 1979-1980 peak levels of 7.6 times the S&P 500, gold would have to hit the $10,000 mark. [Let me explain further.] Words: 1316
Read More »Market Crash Will Hit By Christmas 2011! Here's Why
At the beginning of 2011 USA Today reported...[that] Ned Davis Research says the S&P 500 will make a run at the 2007 high of 1,565, hit a “midyear peak” [and] then it will crash as interest rates rise...concluding that “the midyear peak could mark the end of the cyclical bull market that began in March 2009 and the start of a new cyclical bear market.” Words: 637
Read More »With U.S. Facing Default Where Should You Put Your Money?
With the United States quickly approaching the deadline for raising the limit on its debt load, squeamish investors are thinking about how they can preserve their hard-earned money. [Let's discuss the alternatives: gold and silver, cash, currencies other than the USD and the VIX.] Words: 683
Read More »Why the Dow Could Hit 20,000 by 2014 (+2K Views)
To move up from the current 12,600 level to 20,000 by the summer of 2014, the Dow would need to rise about 16.5% each year or about 58% in a three-year period and in the past 25 years the Dow has risen by this much on at least 13 occasions. During those times, there was only one period of sustained annual gains, when the Dow rose an average of 26% from 1995 through 1999. The key question: what would it take to justify a three-year, steady, robust gain? It all comes down to corporate profits [and the extent to which] multiple investors are willing to assign [dollars] to these profits. [Let me explain.] Words: 761
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