Addendum to Market Trend 08 25 2010
August 26, 2010 I was asked about the Russell 2000 Small Cap Index and NASDAQ (Technology) Index since investors typically like to see Small Caps and Technology performing well, as it usually indicates a healthy market. Also, generally speaking, investors like to see the Russell 2000 and NASDAQ showing better relative strength compared to the S&P 500. In the nature of trying to keep it simple, I have analyzed the Russell 2000... Read more...
Market Trend Update 08 25 2010
August 25, 2010 Below are two looks at the S&P 500. I’ve annotated and marked some highlights within each chart. I think you will find why we are struggling in this market. It has traded sideways in a very volatile manner for several months now. This is the kind of market that can very easily cause one to abandon a disciplined strategy because there simply is no trend from a momentum standpoint and from a technical standpoint,... Read more...
Anomaly of Performance Bonds vs Stocks
I wanted to share the article below that was published by Fidelity in the beginning of April. I think there are some very interesting insights that can be drawn from this. From a longer term or “secular perspective,” I believe that we have been operating in a “Secular Bear Market” that began in 2000. A Secular Bear Market typically lasts 10 to 15 years. Our last one was from 1966 to 1982….a time in which... Read more...
Definition and Importance of GDP (Gross Domestic Product)
Gross Domestic Product (GDP) GDP is a comprehensive scorecard of the country’s economic health. It represents the total value of the country’s production and consists of purchases of domestically produced goods and services by individuals, businesses, foreigners, and the government. It is released quarterly, with revisions, by the Bureau of Economic Analysis, U.S. Dept of Commerce. Because the GDP is the all-inclusive measure of economic activity,... Read more...
Definition and Importance of Leading Economic Indicators
Leading Economic Indicators (LEI) The index of Leading Economic Indicators is a composite index of ten economic indicators that typically lead overall economic activity. It is released month by The Conference Board The 10 components of the LEI are: Vendor performance Stocks Money Supply Interest Rate Spread Consumer Expectations Average workweek Unemployment Claims New Orders Consumer New Orders Capital Goods Building Permits By tracking economic... Read more...