Easy money, especially quantitative easing, presents unique challenges for investors. The FED has lowered the cost of credit, therefore lenders make less. The other side of the accounting ledger is that debtors pay less. But, the risks of lending money have not changed to justify the lower return you receive. In fact, the FED has artificially lowered the rate because [...]
The Standard & Poor’s 500 is a stock market index based on the common stock prices of the biggest 500 publicly traded American companies. The S&P 500 ((IVV)) has been on a tear since blasting through resistance at the 50-day moving average in the beginning of July. The index is now only half a percent from its all time intraday [...]
After a scorching start to the year, the S&P 500 Cap-Weighted Index ((IVV)) finally pulled back some, about a month and a half after setting all time highs at the 1687 level. The next move hinges on this coming week's market action, as the index rebounded through its 50-day moving average but has encountered resistance at the 1630 level. A [...]
Manipulated, Controlled markets with a sparse number of large, speculative participants are not deep, liquid, healthy markets. Cash Hard to Raise as Fed Jars Credit Markets Click here to sign up for our free weekly e-newsletter. For information on Alhambra Investment Partners' money management services and global portfolio approach, Douglas R. Terry, CFA is reachable at: dterry@4kb.d43.myftpupload.com
The GSCI Commodity Index ((GSG)) consists primarily of Energy (71%), but also contains Agriculture (14%), Industrial Metals (7%), Livestock (4%), and Precious Metals (4%). After breaking out to the upside in January, the index quickly reversed course and broke down technically, moving below both its 50-day and 200-day moving averages. The index has been mired in a ugly downtrend since [...]
Better growth for the US economy is right around the corner, we can sustain higher interest rates, we don't need artificial assistance. Oh shit, sell everything. The US stock market was off 4% from Wed announcement to Thu close. In fact every major asset class was down during this period, including short term US treasuries. Investors were not looking for [...]
The S&P 500 Index (IVV) has come down to earth in the last couple of weeks, following a stellar run in which the index gained over 24% in a little over 5 months, reaching new all-time highs in the process. While it still finds itself above short-term support, the index is forming a wedge pattern, where its downtrend line will soon [...]
As reported last week, we added some companies from our watch list. The expectation is that these buys will eventually be offset with sales of companies which we don't feel offer the upside potential. The market did not start the week strong. It headed south and tested the 50 day technical line again; support did hold. We see a decisive [...]
The Standard & Poor’s 500 is a stock market index based on the common stock prices of the biggest 500 publicly traded American companies. The S&P 500 ((IVV)) successfully bounced off its 50-day moving average this past week on after a rough couple of down weeks. This is the fifth time it does so, giving credence to the buy-on-dips mentality. [...]
As we've been reporting, the economic data has been showing weak performance. But, the market hasn't seemed to mind. QE is in high gear. It is supporting asset prices as the over-leveraged sectors of the economy heal themselves. The banking and household sector received bailouts and a slow healing process puts them in a better place today. The government sector [...]
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