It’s been a crazy year for markets to put it mildly. Europe descended into a full blown financial crisis, the U.S. failed to make significant headway in economic growth, and Asian economies started heading south. And the sad part is that 2012 might just be much of the same. Looking back on 2011, Guardian economics editor Larry Elliot reviews the …
The January Effect: Will It Hold In The Current Investment Climate?
As we head into 2012, there are a multitude of scenarios that may unfold. But looking at the short-term, some investors look forward to this time of the year because of the January Effect, an apparent anomaly that questions the efficient market hypothesis. The January Effect is named for the fact that monthly performance in January has been overwhelming positive. …
Eurozone Re-Cap: Is A Long-Term Solution in Sight?
Although the EU Summit has come to a close this week, it’s still hard to see whether the Eurozone has the tools to rid itself of its crisis. The U.K. has decided not to agree to the new EU treaty, creating some discord among the 26 other European members who agreed. However, greater problems are still at hand, especially whether …
Big Surprise to the Upside for Major Market ETFs, But Not For Long
[Chart courtesy of MarketWatch.com] It was a surprisingly joyous day for equity ETFs as global markets rebounded from last week’s rough patch. The S&P 500 roared back, finishing up 2.92% while in Europe, the DAX had a huge day by rising 4.60%. However, the dollar remained at $1.33/Euro. Regardless, I view today as a mere blip and that market pessimism …
Domestic TTI Correction
The Domestic Trend Tracking Index (TTI) is currently hovering above its long-term trend line by only a scant +0.10% and not +0.43% as I posted in yesterday’s market commentary. When reviewing the numbers, I noticed that one of the components had not been updated due to closing price unavailability. Any further market pullback will likely push this indicator below the …
Heading into Uncharted Territory: European Breakdown
As markets erred to the downside this week, it’s clear that Europe has its back up against the wall. Italian and Spanish bond yields have reached new heights as the contagion appears to be spreading. Not only are all Eurozone nations linked together with debt holdings, but so is the U.S. as well as many Asian countries. Although we didn’t …