In a rare event, this week the Dow eked out an 11-day consecutive win streak, which is a streak usually reserved for the early phases of an economic expansion and not the late stages like we are in now. Corporate earnings need to increase 30-40% this year to justify current valuations, meaning investors today will … Read more
Over the last year, the value of the S&P 500 is growing at a rate six times faster than earnings. Earnings haven’t mattered much these past few years, but at some point, they will be relevant again and markets will adjust accordingly. Market bubbles usually invoke greed and the fear of missing out; this one … Read more
The “hot” employee benefit for 2017 is financial wellness programs, according to surveys of the nation’s employers. These programs can focus on a variety of areas, including debt management, budgeting, financial planning, etc. A much-quoted survey by human resources consultant Aon Hewitt revealed 55 percent of companies already offer their employees some help in at … Read more
After being flat for nearly 3 months, equities continue to grind higher in the absence of sellers. Short sellers are afraid to enter, which will leave stocks nowhere to go but up. Mid-term momentum puts the S&P 500 back at 2,100 and the DJIA at 18,300. Be forewarned. Gold (and gold miners) finally ran into … Read more
As markets opened all our buy signals were tripped, only to see 90 minutes later the sellers arrived. Gold has failed to break over the psychological $1,220 level six times and is forming a double top pattern. In market speak that means prices are more likely to fall. We really need to see strong volume … Read more