Grow Your Portfolio the Intelligent Way

A Bit More Stable

 This week, we saw stocks become a bit more stable; although by Friday’s closing bell the major indices did wind up slightly in the red for the fourth-consecutive week. The Dow finished down 0.56% over the past five trading sessions, while the S&P 500 was off a fractional 0.16%. The NASDAQ Composite lost just 0.23% […]

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A Darwinian Warning?

“It is a cursed evil to any man to become as absorbed in any subject as I am in mine.”   –Charles Darwin   I certainly empathize with the sentiment here expressed by Darwin in the above quote, as I’ve been accused more than once of being a bit too absorbed in dissecting the markets.

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What Do You Do with Cash?

Do you have idle cash languishing in a savings account or money market account earning less than 1%?  If so, you may be missing out on excellent opportunities to achieve both steady income and capital appreciation generated by your hard-earned assets.   The Federal Reserve and banks around the country have dropped the yield on

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ETF Talk: The Aluminum Alternative

Just as aluminum is a substitute for more expensive materials in finishing the facades of homes, it also is a viable alternative for investors interested in commodities. While silver is among the commodities that have seen a decided pullback of late, aluminum actually is holding up fairly well.   I just read that the world’s

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My Money Show Presentation is Online Now

A couple of weeks ago, I was in Las Vegas, Nev., for the annual MoneyShow. After three days in Sin City, it was nice to get back to the calm of my home on the California coast. I had a great time interacting with subscribers to my advisory services, and with Alert readers.   I […]

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Getting Too Sentimental

The recent slide that we’ve seen in equities has pushed stocks down more than just a trivial amount. Consider that from their April 29 high through May 24, the move lower on the S&P 500 was about 3.45%. And while that level of decline is nothing trivial, it’s certainly not what I would characterize as a doomsday scenario. Yet the decline in stocks has many investors getting a bit too sentimental.

We can see this by looking at the latest market sentiment readings from the American Association of Individual Investors (AAII) survey. This is a measure of market bias that’s traditionally a contrarian indicator, meaning that if the bulk of people are bearish, then a bullish move is likely waiting in the wings.
 
According to the latest numbers, sentiment has gone from 64% bullish not long ago to below 26% bullish. What this means is that most individual investors now are bearish on stocks. Interestingly, this low level was hit last August, just prior to a 30% surge in stocks.
 
 
 
The moral of this sentiment story is that when a big percentage of investors get bearish, a bullish turnabout could be waiting in the wings.
 
In my judgment, I think the odds are much greater that the market will move higher from here than that it will move appreciably lower. I say that not just because of the AAII numbers, but also because of the attractiveness in some of the most beaten-up, high-quality sectors. I think bargain hunters are waiting for just the right moment to get back into the trade and, when they do, I expect the bull to come bucking out of its chute.
 

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Time to Buy the Dip

Stocks bounced around between positive and negative territory over the past five trading sessions, but when Friday’s final bell sounded, the major averages were in the red for the third-straight week. The Dow finished up with a weekly dip of 0.66% while the S&P 500 edged 0.34% lower. The NASDAQ Composite was the biggest loser […]

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On Striving For Perfection

“Perfection is impossible. However, striving for perfection is not. Do the best you can under the conditions that exist. That is what counts.” –John Wooden The wisdom output from the great collegiate basketball coach is truly impressive. Here, the UCLA legend gives us some thoughts that can be applied to investing. You see, perfection in

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ETF Talk: Which Silver ETF Shines the Brightest?

Despite this month’s massive pullback, silver is a commodity that offers a hedge against inflation and a chance to ride a potential rebound in the price of the shiny metal. It may turn out that the selling momentum that dragged silver down in recent weeks was little more than an overdue market correction after the

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My MoneyShow Presentation is Online

Last week, I told you that I was in Las Vegas for the annual MoneyShow. After three days in Sin City, it was nice to get back to the calm of my home on the California coast. I had a great time interacting with subscribers to my advisory services, and with Alert readers. I discussed […]

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