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Gold and Silver Bars

Will Gold’s Slump Lead to More Gains for Bears?

Gold has it bad and that ain’t good. Especially if you’re a goldbug. Not only has gold officially forfeited it’s year-to-date gains, but over the past month it’s closely shadowed one of the globe’s worst performing assets; the euro (NYSEARCA:FXE). (Audio) Listen to Ron DeLegge @ The Index Investing Show Ahead of gold’s (NYSEARCA:UGL) latest …

Will Gold’s Slump Lead to More Gains for Bears? Read More »

Lower Energy Stocks

Have Energy Stocks Finally Bottomed?

Energy stocks slid 8.7% last year and was the only S&P 500 (NYSEARCA:VOO) industry sector to lose value in 2014. Have energy stocks (NYSEARCA:XLE) really bottomed? FactSet reports: “Despite declining oil prices over the past few months, industry analysts are most optimistic regarding the Energy sector in 2015, based on their current ratings and target price estimates. In …

Have Energy Stocks Finally Bottomed? Read More »

Ocean Waves

Is Rising Stock Market Volatility Bullish?

When stocks go up volatility goes down and vice versa. While this historically inverse relationship plays out most of the time, there’s been a significant disconnect as of late. The chart below illustrates this disconnect. As you can see, over the past three-months, the S&P 500 (black line) has gained around 2.7% yet the S&P 500 volatility …

Is Rising Stock Market Volatility Bullish? Read More »

Boxing Match 1

Is Gold’s Knockout Punch Coming?

Having an entrenched view is a good recipe for failure. And perhaps, there’s no better Wall Street case study than Peter Schiff, a precious metals permabull. Never mind his incorrect calls about a U.S. dollar collapse (NYSEARCA:UUP). On Feb. 13, 2013, Schiff stubbornly reiterated his bullish view of gold, being quoted – as his public …

Is Gold’s Knockout Punch Coming? Read More »

Race Cars 2

Psst…Volatility is Still Outperforming the S&P 500

One week after the VIX (ChicagoOptions:^VIX) spiked to 30, Wall Street’s Kool-Aid drunks are back to saying that stock market volatility is over. It’s done. And it’s never returning. The Santa Claus rally in small cap stocks (NYSEARCA:IWM) and technology shares (NYSEARCA:XLK) smack dab in the middle of October, now has Sand Hill road (Silicon …

Psst…Volatility is Still Outperforming the S&P 500 Read More »

Ocean Waves

Is Swelling Volatility on Modest Declines Bullish?

It’s been three years since the last significant stock market decline. The 19% slide from April 2011 to October 2011 stoked fear, but still missed the official definition of 20% bear market. This time around, it’s still too early to know whether the modest pullback in the S&P 500 (SNP:^GSPC) that began several months ago …

Is Swelling Volatility on Modest Declines Bullish? Read More »

Ocean Waves

Don’t Miss the Next Volatility Wave

One of the most dominant narratives today is that stock market volatility has gone completely away and is never returning. Is it true? A research paper titled, “Stock Market Volatility during the 2008 Financial Crisis” by Kiran Manda at the Stern School of Business, New York University observed: “From 2004 to early 2007, the financial …

Don’t Miss the Next Volatility Wave Read More »

Stop Sign Crossing

Are Junk Bonds Signaling Pause in Equity Rally?

What does the bond market know that the stock market doesn’t? Even the U.S. stocks (NYSEARCA:IWV) have been scoring one record high after another, the SPDR Barclays High Yield Bond ETF (NYSEARCA:JNK) has gone in the opposite direction. The performance divergence between high yield bonds (also known as “junk bonds) (NYSEARCA:HYG) and the S&P 500 …

Are Junk Bonds Signaling Pause in Equity Rally? Read More »

Fairytale

The No Market Volatility Fairytale

Has 2014 stock market volatility really gone the way of dodo birds and dinosaurs as claimed? The news du jour is that falling VIX means that stock market volatility (NYSEARCA:SPY) is non-existent. Is it true? Recent headlines give this innuendo. Here’s a tiny sample: VIX Tumbles to 9-month Lows – Zerohedge VIX Volatility Index Falls …

The No Market Volatility Fairytale Read More »

Experts Get the Gold Market Wrong (again)

Two questions: How wrong have experts been about the gold market this year? And how much money has their bad advice cost people? Let’s tackle the first question, by extracting and analyzing some recent headlines: “Gold Miners Fail to Launch” – Forbes, 5/14/14 “Gold Vulnerable to Manipulative Selloff in June” – Max Keiser, 5/30/14 “Why …

Experts Get the Gold Market Wrong (again) Read More »

4 Bold-Faced Lies about High Frequency Trading

FULL DISCLOSURE: I was once in the camp of high-frequency trading (HFT) supporters. But that changed on May 6, 2010 after the U.S stock market’s “Flash Crash.” After studying the arguments and facts, I’ve now come to realize the existence of HFTs is unlawful and is a direct threat to the fairness and stability of …

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How Much Money is Enough for a Comfortable Retirement?

In 2011, the oldest members of the Baby Boom generation reached retirement age and over the next 15 years, around 8,000 Boomers per day will turn 65. And as more Americans contemplate life in retirement and preparing for it, they need to have a clearer picture of what their income (NYSEARCA:AGG) needs will be after …

How Much Money is Enough for a Comfortable Retirement? Read More »

Stock Market Fear is Tapering, Greed is Back

The stock market’s wild mood swings from fear to greed and back are in full swing again. And this time around, the investing public’s fear of missing out on potential stock gains is greater than its fear of losing money. The latest Fear and Greed Index shows that stock market greed is now at extreme …

Stock Market Fear is Tapering, Greed is Back Read More »