John Hussman wrote a nice piece on “Post Crash Dynamics,” which is worth reading. Here are some highlights: When markets crashes are coupled with changes in the fundamentals that supported the preceding bubble – as we observed in the post-1929 market, the gold market of the 1980’s, and the post-1990 Japanese market, and currently observe in the deflation of the …
No Load Fund/ETF Tracker updated through 8/13/2009
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpQuestionable economic data pulled the major indexes lower for the first weekly loss out of the last five weeks. Our Trend Tracking Index (TTI) for domestic funds/ETFs has now crossed its trend line (red) to the upside by +5.25% keeping the current buy signal intact. The effective date was June 3, …
Staying The Course
Before the Fed’s announcement yesterday that interest policy was unchanged, the markets took off trying to erase the losses sustained earlier in the week. Some resistance towards the end of the session set in (see chart), and profit taking pulled the indexes off their day’s highs. The Fed commented that inflation is not a problem at this time since the …
Anxiety
Anxiety over the outcome of the Fed meeting, coupled with fear that we may have reached an interim top in the market, kept a lid on any recovery efforts yesterday, and the markets closed down for the second day in a row. In the bigger scheme of things, the losses were moderate and, given the recent advance, they were long …
Dow Theory Sending Buy Signals
The market tripped a little yesterday but, as has been the case lately, the bulls put up a fight after the early sell off, and the losses ended up being moderate. On the horizon is the Fed’s decision on interest rates, which is due out on Wednesday. While no changes are expected, uneasiness nevertheless prevails. With the economy being as …
The Mother Of All Bear Market Rallies?
Mish at Global Economic Analysis referenced an interesting article written by economist Dave Rosenberg titled “What Growth is the S&P; 500 Pricing in? Here are some highlights: Based on past linkages between earnings trends and the pace of economic activity, believe it or not, the S&P; 500 is now de facto discounting a 4¼% real GDP growth rate for the …