Where are we now?

The last several days of last week saw a new crop of economic data (see my post below). Because of their inconclusive direction, that perrenial investment question needs to be answered yet again: where are we now? This situation has been in place since March of this year when the staring contest, or game of chicken, that I have been discussing here for some time ensued.  If you are new to the...
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Fears of European crisis way overblown

Good morning everyone! For today’s post I wanted to highlight for you why I feel that current investor fears about a collapse of the European economy are way overblown. As far as I can tell most of the fears are sourced in a fear that Spain will be the next Greece.  The market rumor mill which is so powerful and so silly is full of news that a Spanish official has suggested that Spain is...
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Data supports blog prediction

Bloomberg is reporting this morning that demand for long-term U.S. financial assets surged in March and April.  Recall that I predicted this would happen because of the turmoil in Europe, as well as the fact that the U.S. economy is strengthening.  In March the net buying of U.S. financial assets was a staggering $140.5 billion, and in April it was a more modest, but still impressive, $83...
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Patience in the face of fear

As I am sure each of you knows the U.S. financial markets have been taking a beating as of late.  Precisely counter to my recommendation to buy into those same markets.  Fear has been ruling the day.  Fear that Europe’s economy may collapse.  I hate to harp on the point, but while Europe may take longer to emerge from recession than the United States and it may even experience a double-dip...
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The investor elephant in the room just put on some weight

Today saw the release of March private payroll data from the nation’s largest processor of payroll checks, ADP.  Unemployment “unexpectedly” increased by 23,000 jobs in March vs. an expected 50,000 jobs added by a swath of economists. Analysis: Folks this is not good news.  Not only did the economy not add jobs last month, it shed quite a few jobs.  Economists are clearly...
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a little gloating

Today’s post is necessarily short because I am currently onboard a motor home in Palm Springs as we move down East Palm Canyon Drive. Yes, I am on the road with my gorgeous, wonderful wife, Dawn. However, lest you think that I am not paying attention, I saw the Dow Jones’s fall yesterday of over 700 points due to bad economic news. I won’t say I told you so…just take a...
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stock market runup is unwarranted

The news today that the Dow Jones Industrial Averages was up 936 points, or 11.1%, has spread like wildfire. NASDAQ was up 11.8%. The S&P 500 was up 11.6%. Wow! That felt good, didn’t it? Problem is…not much has changed. In my last post I said that certain conditions had to be met that would ensure that a bottom had been reached in financial markets and that it was safe to invest...
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