Browse by Tags

  • How Much Higher Can The Bull Go? - The AIA Advocate Newsletter

    In This Issue: How Much Higher Can The Bull Go? Predictions About The Economy Are All Over The Map Several Threats To Growth Are Worrisome Food And Energy Are Good Bets Now The Bottom Line Since our last newsletter in February, the stock market continued...
  • The Fear of Default Contagion is Rage'n – The AIA Advocate Newsletter

    In This Issue: The Fear Of Default Contagion Is Rage’n The Debt Ceiling Deadline Also Worries Investors Growth Is Weak, But The Second Half Should Be Stronger Energy Stocks Should Lead A Market Rebound Blue Chip Tech Stocks Should Also Do Well The...
  • The Best Strategy For Investors - The AIA Advocate Newsletter

    In This Issue: All Eyes Are On The Fed Ben Bernanke’s Dilemma The Best Strategy For Investors Energy Still Looks Like A Long Term Slam Dunk Technology Stocks Are Bouncing Back The Bottom Line This Month Over the past month, the stock market shrugged...
  • Association for Investor Awareness - Week of 05/27/2010

    In This Issue:

    The Way Ahead
    Long-Term Investors Welcome Stock Corrections
    Mutual Funds May Beat Index Funds From Here On
    Finding Current Income
    The Bottom Line

    Our special report last month that warned about a stock market correction, proved to be very timely. We would have actually been happier, not to mention a bit wealthier, to have been wrong. Unfortunately, Mother Market never consults us before making her moves.

    In any event, from April 29 to May 26, the Dow and the Nasdaq dropped an uncomfortable -10.7% and -12.6% respectively. Judging from the strength of the decline, it has further to go before it runs out of steam. The Way Ahead

    The biggest question for investors now is whether the decline is a normal correction, or the start of a bear market.

    We think the drop is most likely a correction. It was to be expected following the heady run-up of the previous 12 months. The only surprise is the retreat didn't come earlier. The delay allowed many stock prices to move further ahead of the economy, which means they have more ground to give back before the scales are balanced again.

    Fortunately, the economy is continuing to grow – and it is doing so at a higher pace than most analysts predicted. By the fall, we think the stock market will resume its advance in a classic catch-up move.

  • Association for Investor Awareness - Week of 05/28/2009

    In This Issue:

    Is The Economy Finally Turning Around?
    Companies With Cheap Eats Are Doing Well
    China's Economy Is Still Hot (Compared With Everybody Else)
    Energy Investments Are Looking Good Again
    The Bottom Line This Week

    The stock market rally that started on March 9 is proving to have longer legs than even the most optimistic investors dared hope. Through the end of May, the S&P 500 was up 30 percent even though the economy was continuing to decline.

    Over the past month, however, the market's performance suggests that the rally may be getting short of breath. Since our last newsletter, the Dow gained an unremarkable 1.1% and the Nasdaq barely rose 0.7%. It remains to be seen if stocks will get a second wind and run for another few laps, of if a correction is on the way.

  • Association for Investor Awareness - Week of 12/18/2008

    In This Issue:

    The Economy Is Bad, But Stocks Are Priced For Worse
    Stocks Outshine Their Competition
    Behold The Halo Effect
    A January Bounce Seems Likely
    Energy And Foreign Growth Are Positives
    We May Be Halfway Through The Economic Downturn
    What Everybody Knows...
    The Bottom Line This Week

    Last week we received additional signals that a bear rally is probably in the works. During the five day period, investors were treated to a smorgasbord of bad news. Congress turned thumbs down on bailing out the Big Three automakers. Unemployment surged to a 26 year high. T-Bill returns dropped to essentially zero. Many bellwether companies issued earnings warnings. Several firms cut their dividends, and investors were shocked by a $50 billion hedge fund collapse.

    So what did the market do? It barely budged. The Dow eased down less than 0.1%. The Nasdaq actually rose 2.1%. The market was also strong during the first three days of the current week. In our opinion, such resilience in the face of disturbing economic events indicates that investors are probably getting ready to do some buying.

  • Association for Investor Awareness - Week of 11/20/2008

    In This Issue:

    Stocks Search For A Bottom
    High Energy Prices Will Return
    Commodities Will Also Rebound
    Infrastructure Spending Is Likely To Soar
    The Bottom Line This Week

    Stocks stumbled badly again last week as deteriorating economic news caused another round of investors to throw in the towel. By Friday afternoon, the Dow and the Nasdaq were down an additional 5.0% and 7.9%. The declines left the two indices down 35.9% and 42.8% for the year. Ouch!

    This week got off to an equally bad start. Although we had a 151 point gain on Tuesday, it was overshadowed by a 651 point slide on Monday and Wednesday.

  • Association of Investor Awareness - Week of 10/30/2008

    In This Issue:

    A Big Rebound May Be Close
    Like Kids In A Candy Store
    Super Stocking Stuffers
    These Trends Are Your Friends
    The Bottom Line This Week

    Another bear trap snapped shut last week when the 4.8% stock market gain from October 6 - 10 turned into a 5.4% loss for the Dow and an ugly 9.3% plunge for the Nasdaq.

    As has been the usual pattern during this stock market plunge, the drop was larger than the previous bounce. One of our group compared the market to a slot machine that gives just enough money back to make people want to keep playing.

    We saw another inducement to play on Tuesday of this week when the market surged nearly 890 points when it became known that the Fed would lower interest rates again. When the official announcement came on Wednesday, stocks eased back 74 points. It was a textbook example of the old Wall Street rule to "buy on the rumor, sell on the news."

  • Association for Investor Awareness - Week of 10/23/2008

    In This Issue:

    It's Too Early For A Sustained Rebound
    But, There Are Finally Some Signs Of Relief
    What Everybody Knows Is Often Wrong
    Another Contrary Economic Outlook
    Cheaper Energy: The World's Biggest "Tax" Cut
    This High Yield Investment Looks Good
    The Bottom Line This Week

    Mother Market took pity on investors last week when she tossed a few points our way. Actually, it was more than just a few. The total for Monday and Thursday came to a whopping 1338. Since she took back "only" 937 points, the Dow and the Nasdaq ended the period up a welcome 4.8% and 3.8% respectively.

    When the closing bell finally rang on Friday and the week's gains were locked safely away, some of us let out a happy little "hurray." However, our killjoy number cruncher pointed out that with so many wild swings happening every week it was inevitable that the market would occasionally end on a high point. In other words, the bounce could have just been a random event. Rats!

    On Monday of this week the market jumped another 413 points, but it gave back 746 points on the following two days. Oh well, the mini-rally was fun while it lasted.