What An October Pullback May Lead To For Investors
There are valid reasons for forward looking optimism in my view for investors.
Here's Why The Best Investors Ignore Market Crashes
In October 1987 the markets crashed. The New York Times headline called it “Bedlam on Wall St.” The Times of London called it “Wall Street’s blackest hours”. Trading volumes nearly doubled past records as investors stampeded for the exit. Stocks lost almost a quarter of their value after just 7 hours of trading, and the picture globally from London to Tokyo was similar. It sounds horrendous doesn’t it? Clearly, a reason to stash your cash under the mattress rather than risk it all on the capricious markets.
Switzerland Set To Greedily Grab Gold
On November 30th the Swiss will be asked to vote on boosting the share of central reserves devoted to gold.
Opinion polls indicate they will vote yes.
The Week Ahead: This Market Could Hurt Stocks
The wide market swings of the past eight days in the stock market have likely scared the average investors and kept them from buying stocks. This will keep the public's participation in the stock market at low levels. This is not surprising as many professionals are also likely confused as they wondering whether they should be buying or selling.
Just a week ago, the sentiment in the financial media was decidedly negative with only a few of the longer-term value oriented analysts interested in buying. Several well known analysts proclaimed a new bear market was underway. With Thursday's sharp gains, the consensus now seems to be that the market's correction is over.
The Fear & Greed Index that I reviewed in early August's Are the Fear Levels Really That High? is now at 13, which is an extreme fear reading. Back in August, it was even lower at 4. I have not studied this enough to be convinced that this is a contrary indicator but the low reading in August came just after a round of panic selling.
Clearly, there were signs of panic liquidation on Wednesday, October 15 as the Spyder Trust (SPY) dropped to a low of $181.92 before closing at $186.43. As of last Thursday's close, the SPY was up 7.1% from the intraday lows. The yield on the 10-Year T-Note also briefly dropped well below 2%.
Sodastream Surges After Cutting Small Deal With Pepsi
A partnership with Sodastream could help Pepsi combat weakening sales among health-conscious consumers.
The Markets Not Making Sense Says Dennis Gartman, Austrian Business Cycle Theory Can Help
We wrote a piece on October 16th entitled, Austrian Business Cycle Theory, Money Supply and Investment Success. In it we made the case that an investor armed with Austrian Business Cycle Theory (ABCT) has a competitive edge in the fight for investment returns. Indeed, we would say that without ABCT investors are at a competitive disadvantage, for it is only through ABCT that one can truly understand what is underpinning the economies and financial markets of today.
Pentair Now #303 Largest Company, Surpassing Whole Foods Market
In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Pentair PLC (NYSE: PNR) has taken over the #303 spot from Whole Foods Market, Inc. (NASD: WFM), according to The Online Investor. Click here to find out the top S&P 500 components ordered by average analyst rating »