State of the Markets
The Bears May Get It Right Eventually
It is said that differing opinions is what makes a market. If there is one thing we know for sure about the current market, it is that the disparity between the opinions of what "should" be happening in the market versus what is actually happening in the market is about a mile wide.
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The Current Key: Breakout or Fake-Out?
The primary focus of the market at this stage appears to be on both the geopolitical hotspots in Ukraine/Russia, Syria and Iraq and the 2,000 level on the S&P 500. The big, round numbers on the major indices (especially the Dow and S&P 500) always seem to bring the debate of valua…
No Professor Shiller, Stocks Are Not Dangerously Overvalued
By: David Moenning
With the S&P moving back to new all-time highs, the debate over valuation levels in the stock market is heating up again. Therefore, this would appear to be a good time to continue our in-depth look at a multitude of valuation indicators.
Much of the attention last week was fo…
All Eyes on Jackson Hole
If it's Friday then there must be new developments in the Russia/Ukraine situation for traders to worry about. Sure enough, this morning there is word that Russia has ordered a convoy of between 70 and 90 aid trucks to cross over the border into eastern Ukraine without approval from Ukrai…
"No Soup For You" (Yet)
While geopolitical issues remain (China closed 4 high profile McDonalds restaurants in retaliation for the West's economic sanctions and a rescue attempt of an American journalist in Iraq failed) traders appear to be focused on the flash PMI data out of China and Europe as well as the out…
And Now It Gets Interesting...
The focus of the market is back on geopolitics today. Video of Islamic Militants apparently beheading American journalist James Foley and threatening to do the same to another journalist has refocused attention on the situation in Iraq. According to the video released, the killing of the …
Next Stop New Highs for Stocks?
Easing geopolitical tensions continue to be a driving force in the current market. Based on talks between Russia, Ukraine, and European leaders, it appears that the situation in Ukraine may be resolved in the near term without further interruptions in economic activity. This is a plus for…
The Valuation Debate: Robert Shiller is Very Worried
The topic of the day from a short-term perspective is the state of the geopolitical issues in Ukraine/Russia and to a lesser extent Iraq and Gaza/Israel. The way this game is played is simple, really. When headlines speak of troop movements, stocks go down. Then when the news wire reports…
Are Stocks Really Overvalued?
Everybody knows that the current bull market has been one for the ages. Everybody who has been long stocks for the last few years has likely enjoyed the ride. Everybody knows that the current bull market is getting old. And yet, everybody also knows that this market has some "issues."…
Thoughts From The Road - Part II
When trying to succeed in the stock market, at least half of the battle is learning to identify the type of environment you are dealing with. If the two devastating bear markets that occurred since the turn of the century taught investors anything, it was that employing the same pedal-to-…