Browse by Tags

  • Association for Investor Awareness - Week of 11/25/2009

    In This Issue:

    A Santa Claus Rally Seems Unlikely
    But We Could Have A Big January Bounce
    Get Your Buy List Ready
    A Dollar Obituary Is Premature
    Cash Is Still King
    It's Time To Start Building A Family Fortune
    The Bottom Line This Week

    Last month we reported that investors were starting to become very cautious. Since then, several positive earnings reports encouraged traders to add more stocks to their portfolios. The new purchases pushed the Dow and the Nasdaq up 4.7% and 3.4% respectively. It was a great start to the Holiday Season.

  • Association for Investor Awareness - Week of 02/26/2009

    In This Issue:

    The Federal Bailout Is A Mixed Bag
    Capitulation May Have Been Reached
    Some Blue Chip Stocks Will Win Blue Ribbons
    A Speculation Is Also Attractive
    Gold Regains Its Appeal, But There Are Problems
    An Economic Indicator That We Can Love
    The Bottom Line This Week

    Since our last newsletter on January 29, the stock market took a sharp turn for the worse. In fact, calling it a "turn" is an understatement. "Plunge" would better describe the 9.6% and 4.4% declines in the Dow and the Nasdaq. The slide left the market at a 12 year low.

    Curiously, the plunge isn't due to another panic. At this point in the long bear market, most investors are too tired to sprint for the exits. Instead, many of them are dropping their gear and are simply walking off the field.

  • Association for Investor Awareness - Week of 01/29/2009

    In This Issue:

    Reasons For Cautious Optimism Continue To Appear
    Many Promising Stocks Attract Long-Term Investors
    The Bottom Line This Week

    The stock market continued to lose ground last week as the Dow and the Nasdaq declined an additional 2.5% and 3.4% respectively.

    A growing number of analysts believe the stock slide will continue until the market tests (reaches) the low point it made on November 20. If so, it will be a classic correction to a bear market rally.

    A much bigger issue is what will come next if the November lows are reached. Pessimists believe the market will continue to decline until blue chip P/E ratios get closer to 10. If so, the S&P 500 would drop from today's 832 to 750, or so. Super bears think the index might fall another hundred points.

    On the other hand, optimists believe the market will bounce back in a classic stage two bear market rebound. If history repeats, the second time should be the charm as a new rally would typically test its former highs – and then continue up. The 298 point jump the market took during the first three days of this week suggests that the optimists may be right.

  • Week of 08/28/2008

    In This Issue:

    Tensions Between The U.S. And Russia Are Serious
    Oil And Commodities React To The Threat
    Defense Stocks Look Even Better Than Last Week
    And So Does The Dollar
    Inflation vs Deflation Contest Heats Up
    But Inflation Should End Up With The Gold
    The Bottom Line This Week

    Last week the stock market revealed that it has more underlying strength than world events would seem to justify. If the market is once again acting as a leading indicator of the future, the outlook is brighter than is generally supposed.

    Despite the fact that a new cold war seems to be underway, the Dow was only off 0.3% last week. The Nasdaq declined 1.5%. The market dropped 242 points when it reopened on Monday, but it regained nearly half the loss on Tuesday and Wednesday.

    Our feeling is that investors want to be buyers and can only be held back by disturbing news. That's a big difference from a bear market mentality when bad news drives prices and good news is ignored.