Photo Credit: Ed Schipul (Flickr) Question: Why are there so many mutual funds? Answer: Mutual fund providers tend to make lots of money on each fund so they create more products to sell. The large number of mutual funds has little to do with serving investors’ best interests. Below are three red flags investors can…
“Davidson” submits: The two major monitors of economic activity which I find most helpful in a long term investment approach are the trends of housing markets and the trends of employment. The Housing Market Index(Chart 1: HMI) and Monthly Supply of New Homes for Sale (Chart 2: Monthly Supply of New Homes for Sale) continue to…
Gold is jumping after the overnight double flash-crash…testing back towards $1100… Bitcoin is back up to pre-“Greece is Fixed” levels… Charts: Bloomberg and Bitcoinwisdom
Over the past week most of my core market health indicators fell. Most notable is my measures of the economy which have gone negative. As a result, the core portfolios are adding a larger hedge or raising cash. Below are the current core portfolio allocations. Long / Cash: Long 40% – Cash 60% Long /…
Why Stock Markets Are Not an Indicator of the Economy In a free unhampered market economy based on a sound monetary system – this is to say a market-chosen monetary system with a free banking industry and no central planning institution that is manipulating interest rates and determining the size of the money supply – the gains…
The year-over-year rate of growth of the US Coincident Index declined marginally. A comparison of US Coincident Index, Aruoba-Diebold-Scotti business conditions index, Conference Board’s Coincident Index, ECRI’s USCI (U.S. Coincident Index), and Chicago Fed National Activity Index (CFNAI) coincident indicators follows. In general, most coincident indices are showing constant to declining rate of growth. Economic…
As noted in NFTRH 352: I thought about releasing my JDST position on Friday because it is very profitable and because it appears that capitulation is in the air. But then I thought about the margin clerk and all those names he may be preparing to call upon on Monday. I thought about how my…
There are so many great companies in the market today, but there are also many overvalued companies. By using the ModernGraham Valuation Model, I’ve selected the five most overvalued Dow Components reviewed by ModernGraham according to the ModernGraham approach. Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments,…
Manufacturing activity picked up a bit this month, according to July’s flash estimate of the sector’s purchasing managers’ index (PMI). The sentiment benchmark inched up to 53.8 after June’s 53.6 reading—a 20-month low. Any value above the neutral 50 mark represents growth. Today’s update still shows this cyclically sensitive sector in a relative funk compared with last…
CLICK ON CHART TO ENLARGE Google rallied strongly from 2005 until 2007, gaining over 100% in this short time frame. In 2007, it created a reversal pattern (bearish wick) at (1), which ended up being an important high. After that reversal pattern, Google and the S&P 500 were both cut in half. Of late Googles…
