The fact that consumer spending has not tanked in spite of unemployment being at over nine percent and expected to stay around this level through 2012, and continued weakness in housing is encouraging. When consumers are cautious, they tend to hold back on any major purchases, such as homes, vehicles, furniture, appliances, and travel, to …
The Dow Jones Transportation Average is now showing some real strength around the 4,500 level. This important index got hammered quite significantly. It dropped about 1,000 points since the beginning of July and you can see this in many of the railroad stocks that dropped like a stone when the broader market began to correct. …
Gold prices rising for 10 years straight…the money supply greatly expanded…the printing press for dollars running overtime…am I the only one concerned about rapid inflation? I rarely read or hear a report talking about today’s rising prices or the hyperinflation we may sustain in the years ahead. We all know prices are rising—only housing prices …
Investor sentiment is fragile and the stock market’s been volatile, but the trading action over the last little while has revealed one big consolidation, not a breakdown in the main stock market indices. What’s holding the market around 1,200 on the S&P 500 Index is the expectation for decent corporate earnings. From my perspective, third-quarter …
Loyal and long-term readers know I’m a contrarian investor at heart. When investors are selling in droves, I want to buy. Similarly, when investors are buying stocks as a herd, I’m selling. And this brings me to today’s very important issue. I follow several services that gauge the sentiment of consumers, investors, and stock advisors. …
The precious yellow metal continues to hold up well on the price chart, as traders shift capital from the higher-risk equities to the safe-haven sanctuary of gold. In this country, there are crippling debt levels and deficits. Some cities across the nation are shutting down to save money. The once-powerful U.S. economic engine continues to …
You might not know it, but there is real strength in this market from a number of well-managed, dividend-paying stocks. When the broader market is gyrating and investor sentiment is weak, outperformance comes in the form of stability. Plenty of stocks in this market are outperforming the broader stock market and, in spite of all …
We have a likely debt default in Greece, pegged at a whopping 98%. Ireland and Portugal continue to struggle with muted growth and massive debt. Spain may be needing help. Bond yields are rapidly increasing in Europe in line with the risk levels. You can get a whopping 70% yield in Greek bonds, but then …
The market risk is high. We have the debt crisis and growth situation in Europe. On the domestic scene, the Federal Reserve and government are trying to figure out how to jumpstart the economy and deal with U.S. deficit, the housing mess, and the lack of jobs. There are over 15 million Americans looking for …
Right now, the stock market is at a very important point. The third quarter is just about to end and another earnings season will begin. In terms of the main stock market indices, they all seem to be at a crossroads, right on the line of either staying where they are, or breaking down further. …