I lightened up on Emerging Markets (EM) a little this week. Many of the EM markets took off to the upside after Bernanke announced no change to the current Quantitative Easing program. However, I see the current rally as just another cyclical blip that will quickly lose steam. At the heart of the issue remains…
The Little Market That Could…
This stock market continues to chug along, like the little engine that could. This has been the most resilient market since the 1990’s, showing just how much money is trying to work its way into stocks. This is forcing people to buy on the shallowest of dips. The market action this week tells me there’s…
Why the Dow Will Go Up Forever
Today, S&P Dow Jones Indices announced that they’re swapping out three companies from the Dow Jones Industrial Average Index (DJIA) – “The Dow” that everyone talks about so often when referring to the US stock market. The DJIA is an index of only 30 stocks. It’s price weighted meaning a $50 stock has a larger…
Sovereign Debt Crisis
There have been some interesting developments over the past week that give me additional conviction that the next crisis the investment markets face will be a sovereign debt crisis (government bonds). We’ve already seen the early stages in Europe when yields in Greece, Portugal, Ireland, Italy and Spain spiked higher. Now we have bond yields…