Menu

Market Breaks Out Of Sideways Trading Range To The Upside

 January 28 2017     David Templeton
Over the course of the last three trading days this week, the S&P 500 Index and Nasdaq broke out of the trading range in place since mid December. We highlighted this range in a recent post that noted sizable corrections are unlikely when earnings are improving.For most of the period since the beginning of the second quarter last year, new highs have exceeded new lows, indicating the broader stren...

Buybacks vs. Capex

 January 27 2017     Matt Woebkenberg
The below chart shows that through the end of 2015, S&P 500 companies were contributing a similar percentage of revenue to capex as they were back in 1995 (6.495% in 2015 vs. 6.5% in 1995). This same percentage capex contribution, however, is now only covering 113.4% of depreciation, when it covered 132.73% at the end of 1995.[Note: going back to 1980 or 1990 shows that companies are clearly inve]...

Individual Investors Cautious On Equity Market

 January 26 2017     David Templeton
If the contrarian individual investor sentiment measure reported by the American Association of Individual Investors indicates anything, individual investors seem to be questioning the sustainability of this market rally. Because the Sentiment Survey is a contrarian measure, just maybe the market advance has further upside. In AAII's report this morning, bullish sentiment fell 5.4 percentage point...

Second Longest S&P 500 Rally Since 1932

 January 25 2017     David Templeton
Chart of the Day's report this morning notes the S&P 500 Index return since the October 2011 low is now the second longest since the Great Depression. Specifically, their commentary notes,"With the S&P 500 once again in record high territory, today's chart provides some perspective on the current rally by plotting all major S&P 500 rallies of the last 86 years. With the S&P 500 up 107% since its O...

Sizable Equity Pullback Less Likely During Periods Of Strong Earnings Growth

 January 21 2017     David Templeton
The return for many of the the equity indexes subsequent to the U.S. election has been stronger than many expected. However, most of the post election return was generated in the six weeks following the November 8 election with the equity market trading sideways since mid December. The post election spike higher has some investors waiting for a pullback in the market in order to invest cash that m...

Why the Second Law of Thermodynamics Matters in Financial Planning

 January 19 2017     Anna Pfaehler
The second law of thermodynamics states that the state of entropy of the entire universe, as an isolated system, will always increase over time – or things fall apart. Harvard Professor Stephen Pinker recently wrote for Edge.org: “Not only does the universe not care about our desires, but in the natural course of events it will appear to thwart them, because there are so many more ...

CEO Confidence Surges Higher

 January 16 2017     David Templeton
Early this month The Conference Board reported the fourth quarter 2016 Measure of CEO Confidence. The fourth quarter reading was reported at 65 and is the highest reading since the first quarter of 2011. Readings above 50 indicate more positive than negative responses.Notable highlights from the report as reported by PR Newswire:"CEOs' assessment of current economic conditions was considerably mor...

A Chart Supporting Market Bears

 January 15 2017     David Templeton
For investors and analyst it is important to read and evaluate perspectives that run counter to ones own in order to increase the likelihood they are not missing something in their analysis or thinking. For example, the equity market has essentially moved higher, uninterrupted, since the end of the financial crisis low in 2009 and the bull market seems to want to continue; however, is there someth...

Trying To Market Time Is Fraught With Risk

 January 14 2017     David Templeton
The U.S equity market has certainly had a nice recovery since the financial crisis low in 2009. The magnitude and length of the recovery may have some investors contemplating selling their equities in favor of sitting on the sidelines until the next pullback.A few charts have circulated in the blogosphere recently noting the positive impact on an investor's total return if they simply miss a few o...

Buy The Rumor, Sell The News

 January 6 2017     Matt Woebkenberg
The old investing adage “Buy the rumor, sell the news” comes to mind following the “Trump Rally” to end 2016. As we all know, President-Elect Trump has not yet been sworn into office and yet, the year-end climb in US markets has been mostly attributed to his policy proposals. This makes sense as the market is always forward-looking, but it is important to keep in mind that it often overshoots in...
Page 4 of 80First   Previous   1  2  3  [4]  5  6  7  8  9  10  Next   Last