Back to the future! The Nasdaq Composite Index (NasdaqGIDS:^IXIC) just crossed 5,000. Other stock market yardsticks like the Dow Jones Industrial Average (NYSEARCA:DIA) and S&P 500 (NYSEARCA:VOO) sit atop multi-year highs too. Everything that is old and worn out is suddenly new and exciting.... Read More
Higher stock prices (NYSEARCA:DIA) have kept a lid on stock market volatility.
The S&P 500 volatility index (ChicagoOptions:^VIX), also known as the "fear index," has now fallen around 17% over the past month and is back below its 200-day moving average. Does the stock market's general... Read More
The most important single factor in shaping security markets is the public's psychology. That was Gerald Loeb's observation about how financial markets operate. And history has proven this assessment to be consistently true. What about now?
Although the broader bond market (NYSEARCA:AGG) is... Read More
Q. How many ETFs do I need to own to have a balanced and diversified portfolio? - C.L. in Plano, TX
A. One of the common investing fallacies is that the number of holdings within your investment portfolio should increase as your portfolio's value increases. This is wrong. Why? Because having a... Read More
A good investment plan today is better than a perfect plan tomorrow. Unfortunately, most people don't have either. What about you?
Building a healthy portfolio with sustainable and satisfactory performance doesn't happen by accident. It takes planning and having the proper... Read More
The highly publicized cyber-attack on Sony Pictures Entertainment in November 2014 is the type of greatly feared computerized catastrophe that all individuals and institutions face.
Although a personal cyber attack can be overwhelming, attacks at the corporate or government level can have... Read More
Some illnesses can go undetected for many years. Others are accompanied by obvious warning signs like coughing, sniffling, shortness of breath, and other red flags.
Similarly, we can distinguish between a healthy investment portfolio versus a sick one by how each deals with important matters... Read More
Sentiment extremes, regardless of whether they're bullish or bearish, invariably point to a readjustment in prices. This undeniable truth applies to all asset classes in all time frames. Nothing is immune to the forces of crowd behavior. (See Beanie Babies and Pokemon cards)
On Jan.23, 2015... Read More
For just the fourth time in 50 years, the S&P 500's (NYSEARCA:IVV) dividend yield was briefly more versus 10-year U.S. Treasuries (ChicagoOptions:^TNX). It's another testament to the difficult climate facing bond investors (NYSEARCA:BOND) who want to generate a respectable level... Read More
Have market participants underestimated the possibility of a divorce between Greece and the euro?
The chart below illustrates the market implied probabilities of a Greek default along with an exit from the euro ("GREXIT") since late 2009. As you can see, up until early 2013, both scenarios moved... Read More