SubscribeAll Posts Tagged With: "bear market"
Is the Business Cycle Broken this Time?
No way government involvement is temporary
The U.S. national debt soared in the 1980’s on the record deficit spending of the Reagan Administration to get the country out of the panic of the 1970’s recessions and stagflation. There was no way to escape the consequences. Economists competed with each other with dire forecasts of how this time was different and the nation was headed inevitably into bankruptcy. Remember that huge electronic clock set up somewhere that they’d periodically show us on TV, as it kept track of the millions that were being added to the national debt every minute – or…
Stock Market Rebound or Just Another Bear Trap?
For many investors, the last 12 months have felt like a cross between Dante’s “Ninth Circle of Hell” and Mr. Toad’s Wild Ride.
Even so, after Tuesday’s market action – which saw the Standard & Poor’s 500 Index rebound from a 12-year low to gain 6.4%, and the Dow Jones Industrial Average jump 5.8% – many investors are no doubt wondering if it’s time to pile in.
It could well be. But then again, it just as easily could be a precursor to another financial drubbing – the kind of bear-market “head fake” that I’ve correctly warned investors against on a number of…
12Mar2009 | Money Morning | 0 comments | ContinuedIf Reagan can do it, why not Obama?
One’s economic right could go so wrong…
For several weeks I’ve been writing about the need for the government’s financial stimulus efforts to be supplemented by efforts to instill some degree of confidence in severely depressed consumers and investors.
I was thinking in terms of President Reagan’s strategy upon inheriting the similar economic collapse of the 1970’s. He provided financial stimulus, including huge increases in defense spending, some of it wasted, such as launching the costly but never completed ‘Star Wars’ anti-missile system, etc., but created jobs. He augmented the spending with upbeat assurances about the greatness of America, and…
Richard Russell: The Verdict Is In – It’s a Bear
Source: Richard Russell, Dow Theory Letters
The verdict, at long last, is in. Today the D-J Industrial Average closed below its November 20 bear market low. In so doing, the Dow confirmed the prior breakdown of the Transportation Average. The two Averages jointly closed at new lows today, thereby signaling that the great bear market remains in force.
According to Dow Theory, neither the duration nor the extent of a bear market can be predicted in advance. However there are some useful hints. Most major bear markets end with stocks at "great values" or as some Dow Theorists put it, "below known values."…
23Feb2009 | The Gold Report | 0 comments | ContinuedSmart money’s buying what they sold awhile back
Bear markets return stocks to their rightful owners
The largest sectors of the economy continue to plunge into a seemingly bottomless hole; the housing industry (where it all started), the financial sector still locked in a credit crisis, the giant auto industry possibly within weeks of major bankruptcies, retailers struggling in their worst holiday season in decades.
Almost three million jobs have been lost since the recession began last December, more in the last six months than in the entire 2001-2002 recession. The loss of 533,000 jobs in November was the largest monthly decline since December 1974.
Investors have lost several $trillions…
World Markets Plunge on Recession Fears
Equity markets around the world nosedived today (Friday) as fears of a global recession intensified.
At noon ET today, the blue-chip Dow Jones Industrial Average Index had plunged 267.46 points (-3.08%), to trade at 8,423.79. The tech-laden Nasdaq Composite Index shed 34.67 points (-2.16%), to reach 1,569.24. And the broader Standard & Poor’s 500 Index dropped 28.63 points (-3.15%), to hit 879.48.
The S&P 500 is 45% down from its peak.
Story continues below…
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“It’s a bear market on steroids,” David King, a money manager at Putnam…
27Oct2008 | Money Morning | Comments Off | ContinuedBear market won’t be hibernating anytime soon
Inverse ETFs best bet for bigger, easier profits
In a speech last Tuesday, Fed Governor Janet Yellen became the first senior member of the Federal Reserve to proclaim that the U.S. economy is in a recession.
Last fall, and again in January, I outlined why I expected a recession would begin this year, and why it would probably be “the worst in 25 years, much worse than the mild recessions of 1991 and 2001, which most people remember as typical recessions.”
Wall Street and the Federal Reserve said otherwise. Until just a couple of months ago the majority of economists, and the Federal Reserve,…
21Oct2008 | Street Smart Report | Comments Off | ContinuedYou Can Profit In A Miserable Market Like This – Here’s How…
“The type of man she hated… was the type she wanted.”
That’s a tagline from the 1946 classic film noir movie The Big Sleep, starring Humphrey Bogart and Lauren Bacall.
As a former film student at school, the movie popped into my head while I was on my way to the office this morning, as I was thinking of metaphors to sum up the current state of the stock market. And since the title of the film is a euphemism for “death,” it seems appropriate, given that the recent wild fluctuations have put many investors’ portfolios to sleep – and outright killed many…
17Oct2008 | Smart Profits Report | Comments Off | ContinuedGold, Bonds, and Euros
Oct. 13(Bloomberg) – France, Germany, Spain, the Netherlands and Austria committed 1.3 trillion euros ($1.8 trillion) to guarantee bank loans and take stakes in lenders, racing to prevent the collapse of the financial system
With this $1.8 trillion, and the most recent rumors of a $250 billion bank stake funded by the U.S. Treasury, G-7 economies will have flooded the global banking system with over $10 trillion worth of currency.
I’ve been a proclaimed dollar bear for some time, and this changes nothing except how we look at or define the title. Many consider a dollar bear market one where the…
14Oct2008 | Oxbury Research | Comments Off | ContinuedBailouts, bubbles, and bear markets
The bailouts have not halted financial institution failures, but have quickened the pace of failures.
As the stock market bubble was bursting in 2000 I suggested that readers keep notes or a journal, because someday they would be telling their grandchildren about the bursting of the tech bubble and its aftermath.
It’s only eight years later, and we have the potential for even more dramatic stories for our grandchildren than the 78% plunge of the Nasdaq in the 2000-2002 bear market.
If we believe one side, we might see the nation plunge into the next Great Depression.
What’s scary is they have some…
30Sep2008 | Street Smart Report | 2 comments | Continued
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