There’s no question as to the catalyst igniting yesterday’s rally. It was Intel’s bullish earnings report followed by strength in energy and financials. The gains were the best for the Dow and Nasdaq since the end of March and for the S&P; 500 since the beginning of April. This now marks the third straight day in a row that the …
Fear Factors
The hunt for better portfolio protection during market meltdowns such as 2008 continues to go on. MarketWatch says in “Fear Factors” that investing in the VIX (Volatility Index) could protect a portfolio in volatile markets: Stock investors who spread money across other markets such as commodities and real estate didn’t get much shelter from 2008’s meltdown. But tapping the market’s …
The Power Of One
You never know where a catalyst for buying may come from. Sometimes, it’s simply bottom fishing after a market slide and at other times, it may be encouraging words from an influential analyst. Yesterday, it appeared to be a combination of both. However, when Meredith Whitney, the analyst who became famous for her 2007 prediction that Citigroup faced huge losses, …
Rebound Of The Losers
The WSJ featured an article titled “Rebound of the Losers,” which focused on well-known mutual funds that got clobbered in last year’s market meltdown. Much of the discussion centers on how fund managers misread the market and stayed the course, which turned out devastating for those investors who hung on for the ride. Of course, since the end of last …
Sunday Musings: Is It Time To Buy Muni Funds?
Barron’s posted an article about California IOUs along with some thoughts on the possibility of purchasing muni bond funds. Let’s listen in to “California Scheming:” The outcome of the California crisis ultimately will be determined by politics. As I pointed in the print edition of Up & Down Wall Street a few weeks ago, “Having bailed out the banks and …
Update on Target Funds
Just after the bear market of 2000, I published an article called “Do Lifestyle funds Provide Greater Security?” I talked about the fact that they were a new product that could be sold to investors by giving the incorrect perception that the value will not drop, and they would provide some means of safety. That fact got shattered in a …