A strong sign of long-term investors returning

One of my favorite ways of viewing market behavior was provided by Edgar Peters. He is both a professional investor and an author who wrote a book called “Fractal Market Analysis.” In the book he says that there are two types of market participants: short term and long term investors. On any given day or during any given week there is news flow that can serve as the cause for either...
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Lesson in the Dow Jones changes

You may have heard that both General Motors and Citigroup were both removed from the Dow Jones Industrial Average stock index yesterday and replaced with Cisco and Travelers. The Dow, which has been around forever, is a list of 30 stocks thought to be representative of the U.S. economy and financial markets. The idea behind the DJIA, and any index really, is to give investors an overall view of...
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EU regulatory structure update

Happy June everyone! The weather here in Santa Fe has been rainy and monsoon-like. It has staved off summer’s normal hot dryness. Whew! However, I am about ready for some lovely high-desert weather. I hope things are well wherever each of you is. Today’s post is an update about the regulatory rumblings that are taking place in Europe. Remember that I have been saying as recently as...
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Homonym = synonym

OK, so that is an obscure blog title…but here is what I mean by it trader = traitor. Did you see the big drop in the financial markets today? Give me a friggin’ break. There was no news associated with the drop at all. What’s more, the Dow Jones was down a very mild 39 or so points midday and then closed down over 179 on no news. So why the big drop? You cannot blame profit...
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Regulation – U.S. vs. E.U.

In the comments section of the blog, Nate, asked an excellent question that I wanted to address: “You say the European economy is going to see a nastier recession than the US and come out of it slower. This is due to, among other things, increased red tape and regulation of business. How does that reconcile with your desire for increased regulation here in the states?” I am sorry if...
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Consumers regaining confidence

Hopefully everyone had a relaxing Memorial Day. Yes? Travel? Barbecues? Hockey playoffs? Basketball playoffs? Whatever it was that you did, according to the Conference Board you did it more confidently! Consumer confidence, that all-important measure of the mood of the American rose super significantly in the month of May. Confidence rose from a very low 40.8 to a whopping 54.9. What’s...
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Bad news = decline

Happy weekend everyone! And happy birthday to my mom! In a recent blog post I said that it would be interesting to see how the financial markets responded to the next piece of bad news. The reason was that there was a lot of mixed news hitting and the response from investors was also pretty mixed. That to me looks like behavior associated with uncertainty. If folks were confident in the...
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