wall street

4 Rules for Financial Speculators

Speculation in financial markets carries a hugely negative connotation. For the broader economy, speculation, especially by Wall Street’s heavy hitters that control trillions of dollars in leveraged contracts, poses systemic threats.  For the individual investor, speculation poses the risk of large losses that may never be recuperated. In both cases, the predictable advice by financial …

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Your Investment Portfolio’s Missing Piece

The framework for an architecturally sound investment plan is to have a core portfolio built upon core asset classes. Like the foundation of a building, your portfolio’s core must be built on a solid and stable footing. While there are many things within your investment plan that are optional, this isn’t one of them. Before …

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Fund Shareholders with SunEdison Get Zapped by Bankruptcy Filing

SunEdison now joins the endless parade of defunct stock market ex-darlings like Enron, eToys, IndyMac, and Washington Mutual. Yes, the circumstances are different, but the results are the same: bankruptcy. Once the largest renewable energy developer in the U.S., the Missouri-based company listed $16.1 billion in debt in its Chapter 11 bankruptcy filing on April 21. SunEdison might …

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Retirement Plan

Is “Saving More Money” Always the Cure?

Wall Street’s remedy for fixing whatever problems that afflict your investment portfolio is simple: “Save more money.” And if you happen to be among the godforsaken group that always manages to have unsatisfactory investment results, regardless of whether the pesky stock market is up or down, Wall Street’s solution is invariably the same: You need to “save …

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The Cost of Investment Advice is Still Too High

There are 118 million U.S. households and 108 million have under $500,000 of investable assets while 100 million have less than $100,000 to invest. What does it mean? It means the vast majority of the investing public still doesn’t meet the dollar minimums required to work with a licensed financial advisor. And for those who …

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Stock Market Pit

Wall Street’s Perennial Optimists Strike Again

It’s been said the only bubbles that Wall Street sees are the bubbles in its champagne glasses. It appears those words are true because year-end targets for the S&P 500 (SNP:^GSPC) by Wall Street’s finest – are shall we dare say – quite bubbly: Bank of America 2,200 Goldman Sachs 2,100 Morgan Stanley 2,275 JPMorgan 2,250 Stifel 2,350 …

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Euro Bears Get Whipsawed

Selling pressure in the euro has been relentless over the past year and the currency has fallen just over 19% in value. Without surprise, pessimism toward the euro has been building. Look at these recent mainstream headlines: Delight or Dread as Euro Falls – New York Times (Mar. 11, 2015) Euro Sinks to 12-year Low – …

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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 …

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What Stock Market Sectors are Gaining the Most from Low Rates?

We can officially count 2014 as another bad year for Wall Street’s investment strategists. Not only were they dead wrong about their prediction that interest rates would rise. They were also wrong about bond prices crashing. And 2014 isn’t yet over, yet with moxie and bravado, Wall Street is already predicting higher interest rates for 2015. (Audio) Listen to …

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Wall Street’s Rogue Way for Measuring Performance Apes the 16th Century Medical Field

When measuring the investment performance of a portfolio, the biggest mistakes people make are 1) not tracking performance at all, or 2) comparing a portfolio’s performance to flawed yardsticks. The first point should be self-explanatory, so let’s focus on the second point. If a certain portfolio holds an asset mix of 25% U.S. stocks (NYSEARCA:SCHB), …

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PRC Calculation

The Long-Term Investing Fallacy

The financial services industry likes to preach the benefits of compounding returns and long-term investing. Have they overstated or even misstated their cause? It’s common for industry types to illustrate unrealistic long-term time horizons of 100 or 200 years of equity returns (NYSEARCA:DIA) to prove that we should be long-term investors. The problem with this …

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The Bull Market in U.S. Treasuries that Just Won’t Quit

Stocks around the globe are swooning and bonds are zooming. The almost 3% correction in the S&P 500 (SNP:^GSPC) over the past week has pushed long-term Treasury bond ETFs (NYSEARCA:TLT) higher by around 2.75%.  And just like that, the bull market in bonds that 100% of Wall Street’s economists said would end badly in 2014 …

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Lagging Small Cap Warning Sign For Stock Market?

Did You Miss This Year’s Biggest Investment Themes? Here’s Four

Keeping track of global macroeconomic trends is a daunting task. For that reason, each month we organize and rank the key market trends in our Mega Investment Theme Report by order of significance. Here’s a few of this year’s biggest themes: Commodities Get Crushed All of the hyper-inflationary dreams of commodity bulls have been shot dead. As a …

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Race Cars 2

These 2 Categories are Beating the S&P 500

While Wall Street and the mainstream media is enamored by one all-time high after another in the U.S. stock market (NYSEARCA:DIA), other key investment themes have largely been ignored or forgotten. If the S&P 500 (SNP:^GSPC) stays the same or edges higher, it’ll mean five consecutive yearly gains and nine gains out of the past 10 years. …

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Financial Markets 2.0 Image

How Long Will it Take Before Bond Yields Hit Bottom?

A skilled magician knows the art of distracting the audience is just as important as mastering the trick. And the magicians on Wall Street have once again successfully deflected the investing public’s attention to U.S. stocks near record highs. You see, Wall Street doesn’t want to focus on the reality that long-term U.S. Treasuries have crushed …

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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 …

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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 …

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Car Crash 1

One Rally That Has Blindsided Wall Street’s Throngs

It seems nobody on Wall Street can stop talking about how the S&P 500 just breached its 200-day moving average for the first time since November 2012. From bedazzled TV anchors to nouveau bears, it’s suddenly everybody’s favorite chart, minus Abby Joseph Cohen. The other chart nobody wants to discuss is the significant outperformance of …

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Smart Order Execution for Stocks and ETFs Doesn’t Happen by Chance

Choosing the right investments is half the battle. The other half is knowing when to buy and sell. The invention of commission free ETF trading (NYSEARCA:DBC) doesn’t mean you should be ignorant about the types of buy and sell orders you place.  The same can be said of rock-bottom online stock commission rates. This is true …

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Are Corporate Earnings Being Gamed?

Are corporate earnings really as great as the executives at the helm and Wall Street want us to believe? Over 70% of S&P 500 (^GSPC) companies that have already reported beat analysts’ earnings estimates during the fourth quarter. Furthermore, 66% reported higher sales revenue, which is above four year averages, according to FactSet.  Equity permabulls …

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