These are truly days of wine and roses for stockmarket investors.
After being knocked down in the dot-com bubble of the late 1990s and again during the financial crisis of 2008, long-term investors are being rewarded for their persistence and dedication as stocks surge higher, breaking record after record.
In fact, this bull market turned 4 years old in March and is showing no signs of letting up.
Historically, the average bull market has lasted 4 1/2 years. In and of itself, this means little; for instance, the 1990s bull market lasted nearly seven years without a major correction.
Nothing good lasts forever, including the amazing bull market that investors have enjoyed this year.
Fueled by ultra-low interest rates, solid corporate earnings and a Federal Reserve that says it will do whatever it takes to jump-start the economy, stocks have been breaking record after record as they surge higher. The Dow Jones Industrial Average has rallied more than 1,800 points since Jan. 1 -- and money keeps pouring into the market. Continue reading "5 Critical Threats To The Bull Market"→
As the markets reach new highs, investors have begun to express caution instead of celebration.
Since Nov. 15, 2012, the SP 500 has risen an impressive 15%. That works out to be a 45% annualized gain. And the whole time, a significant number of investors have remained dubious, citing ample reasons why the market should be moving lower -- not higher. And as the market has climbed this "wall of worry," even the most ardently pessimistic bears have thrown up their hands in dismay. Continue reading "4 Trends You Need to Know About This Bull Market"→
O.K. I got it wrong ... but MarketClub's "Trade Triangles" got it right.
The last three days in equity markets have been extraordinary beyond anyone's imagination and you have to respect the market.
One of my heroes in the stock market was a gentleman named Bernard Baruch. You basically don't hear about him anymore, but his teachings about the market are incredibly useful. You may want to read his book, Baruch: My Own Story, which I highly recommend.
One of my favorite sayings that Baruch gets credited for goes like this: "The main purpose of the stock market is to make fools of as many men as possible." Well that certainly happened to me this week when the head and shoulders formation reversed and the market squeezed all the shorts dry.
I got it wrong, but MarketClub's "Trade Triangles" had it right. Our "Trade Triangle" technology was basically neutral and on the sideline's until yesterday when the weekly "Trade Triangle" flashed a buy signal on the stock market.
If you've been reading this blog for any length of time you know that I stress diversification and discipline in trading. When you do that, you really do win out in the long run.
All the best,