Looking back on 2013, many of the economic and political themes seemed familiar: a weak economy. Growing income inequality. Gridlock in Washington. Partisan wrangling over fiscal policy. But others, like the disastrous rollout of the Affordable Care Act HealthCare.gov website and the government shutdown, were new or at least revivals. Below are 10 charts to illustrate a depressing first year of President Obama’s second term:
Click here to read the article
0 Comments
In summary, we expect that this correction will magnify, even if it is short-lived. We say this despite the seemingly optimistic snap-back rally today (November 8). Today’s rally seems to be spurred by the unemployment report, and by bottom-fishers. But we expect selling to return next week. A probe below support at 1730 would likely cause SPX to test the 1700-1710 area. That would certainly cuase some consternation amongst the recently complacent bullish community. But unless the term structure of the VIX futures turns negative, this is likely just a correction and not the beginning of a bear market. The consumer confidence index, which comes out Tuesday, is forecast to rise to 72.5 in May and touch the highest level since last fall. Another index, consumer sentiment, has already hit a six-year high. An updated report on sentiment will be issued Friday. "An above average CAPE is not bad, if one expects that earnings will be improving in the near future. That is, stock prices may be high in anticipation of higher corporate earnings and, consequently, the CAPE will fall as these earnings catch up with the higher stock prices. This is the "good" scenario.
The "not-so-good" scenario is when stock prices increase, yet, earnings do not rise to support the higher stock prices. The question is…is this situation we are now in?" Click here to read the full article "The S&P 500 may be trading at levels that would mark a new all-time high right now, but don't tell that to individual investors. According to the American Association of Individual Investors, bullish sentiment actually declined modestly this week from 38.94% down to 38.40%"
Click here to read the full article |
It's always a good idea to keep some good articles, at least I think they are good for reference, so I can go back and read them later.
Archives
July 2014
Categories
All
|