Key Week For Stocks

This past weekend was an interesting one as it marked the five year anniversary of the bull trend for the stock market here in the US. Looking back on March 9, 2009, we've come a long way on the upside. According to the popular ETF SPY (PACF:SPY), we are up over 181% from the bear market low.

Over in China this weekend, their stock market collapsed to a five year low because of poor demand for their exports. So, on one side of the ledger you have the US market making new highs and in China we are witnessing their market make five year lows.

Can we see these two trends continue? Can the US continue going higher after five years? Is the economy so bad in China that it means that their exports will drop off even more than the recent decline of 18%? Being their number one trading partner, we put ourselves in a bind. If we can't sell the imported goods, then it would appear our economy really isn't that great either.

Seldom do you see such dichotomies in economic trends between two powerhouse economies. Something has to give.

Last week I talked about the US market reaching a tipping point, you can read that post here. What I did not mention is that margin debt, or the money investors borrow from their brokers for stock trading, has reached a new all-time high. This normally indicates that an excessive amount of speculation is going into stocks, especially low-priced stocks. Could this be a warning sign of what's ahead? Continue reading "Key Week For Stocks"

5 Crucial Things Every Income Investor Needs To Know

From: Street Authority

We're just past the edge. The "tipping point" is here.

Don't worry -- it's not dangerous. In fact, if you're an income investor, then this might be the start of a very prosperous trend.

Between now and 2030, roughly 10,000 Americans will turn 65 every day. You might be among them. This marks a major shift that will play out for millions of people in the next years and decades. And I think it could lead to a surge in popularity for income investing.

Think about it. There's currently $13 trillion sitting in U.S. mutual funds, with most of those assets held by soon-to-be retirees, according to the Investment Company Institute research group.

Regarding where that money may go, I think my colleague Amy Calistri put it best: "As baby boomers wind down their working years, they're going to do what retirees before them have done -- shift from riskier stocks and commodities into more buttoned-down income investments. In fact, given the rocky market in the past decade and disappearing pensions, the shift could be larger than most people think." Continue reading "5 Crucial Things Every Income Investor Needs To Know"