Stock Market

November 2, 2017

It’s Not Over Yet

Owning individual stocks (as opposed to ETFs or mutual funds) can be rewarding, but can also test your patience and ultimately cause an investor to lose a lot of money.  Deciding when to hold a stock is the most critical part of the investment proces

October 24, 2017

The Dow Jones Is Due For A Rest

Good earnings from Dow Jones components pushed the index to another record high today.  The recent move has caused the large cap index to become very overbought in the short-term. 

October 18, 2017

You Didn’t Make That Much Money Today…And That’s Ok

When I’m in a general discussion with someone about the market, they inevitably say something to the effect, “Boy that Dow keeps on going up.  Didn’t it recently cross 22 or 23?”  I say yes and discuss the markets in general wondering if they know what that really means.

October 16, 2017

The Calmest Year Ever For The Stock Market

On the Trey Ware Show today, Karl discussed the lack of volatility and how calling tops hasn’t worked the last several years.  Corrections will come and we’re certainly due for one but with the economic strength, the demand for stocks, lack of supply of stocks, and a slow moving Federal Reserve, stocks look poised to continue higher in the medium term.

October 12, 2017

Not All Bear Markets Are The Same

While the major U.S. stock market indices have been making records and arguably becoming more expensive, the question is when will the next bear market take the stock market down?  While that is a fair question and a concern of ours as well, one cannot paint this market with the typical broad brush.  Over the long-term, not all stocks move together in bull or bear markets.  The financial crisis was an anomaly where everything went down together.  In other words, diversification didn’t help.  Holding cash, treasury bonds, and your breath was the only escape of the bear’s wrath.

September 25, 2017

Why Billionaires Buy Sports Teams

Karl joined Trey Ware this morning on the Trey Ware Show to discuss the huge tax write off that billionaires get when they buy sports teams. Also, Karl & Trey discussed how the Federal Reserve is taking off the training wheels.

August 17, 2017

The First Shot Across The Bow

The stock market has taken some sucker punches over the past few months.  But, it’s always seemed to take the news in stride.  In fact, since the election, the S&P 500 has spent almost all of its days above the 50-day moving average, a smoothing mechanism that helps filter out noise.  Today, however, it clearly broke the 50-day moving average.  While we’re still less than 1% below the 50-day moving average, the character of the market has changed in the short-term.

August 2, 2017

Not Everyone Celebrating Dow 22,000

The Dow Jones crossed 22,000 today.  But, not everyone is celebrating the historic move.  Despite the Dow Jones (large cap stocks) rallying to a 6th straight high, the Russell 2000 (small cap stocks) has fallen  5 out of the last 6 days.  

July 19, 2017

This Sector May Set For Big Gains

The energy sector is down over 8% in 2017.  Specifically, Equipment & Service companies are down by over 25% as a basket.  Oil & Gas Exploration & Production companies are down over 20% as a basket.  This comes in a year where every other sector is in the green.  But, energy has rallied in recent days.  Is it another dead cat bounce or is is setting up for a bigger move?

July 5, 2017

Has Volatility Bottomed?

It’s no secret volatility has been low for a long time.  While volatility is a normal part of investing, it makes many investors extremely nervous.  When investors become nervous, they sell. Today’s chart shows volatility from 1990-present.  You’ll notice it seems to go in cycles. If the cycles continue, the next move could be up […]

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