Bull Market

Weekly Update

Buy and Hold Investing


Passive investing involves buying index ETFs or funds of varying asset classes in some predetermined target mix, such as 60% of a portfolio invested in stocks and 40% in bonds. The investor focuses on buying this portfolio at the lowest possible costs, holding the ETFs/funds indefinitely while occasionally making minor adjustments to keep the portfolio near its target mix. The challenge in following a passive investment approach is setting aside our emotional response to a market under severe pressure. Seeing your account balance dropping 20% is difficult for most of us to stomach. We believe investors do not have to suffer through those gut-wrenching declines. (more…)

Weekly Update

The Nasdaq Rolls Over


Published March 5, 2021

The market’s preferred narrative has changed over the past month leading to a selloff in the tech & consumer-heavy Nasdaq. When the current market rally started way back in April 2020, the argument was that the stable earnings growth and global presence of the mega-cap tech and consumer stocks like Amazon, Facebook, Nike, et al. would be the best place for stock investors to park their money. These brands are substantially online or ‘digital’ in their business operations, and less likely to be impacted by the new stay-at-home lifestyle. (more…)

Weekly Update

Have We Just Witnessed the Start of a New Multi-Year Bull Market?


Published November 20, 2020

 

The stock market has blasted upward in a very bullish sign for investors. Last week we talked about how value sectors were finding buyers. This week, we offer even more evidence of the new bullishness in the stock market. Driving this bullish attitude is the announcement of coronavirus vaccines. Those announcements have led investors to expect a return to some economic normalcy in the first half of 2021. (more…)

Uncategorized, Weekly Update

Market Reaches Technical Inflection Point


Published May 22, 2020

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The stock market has rallied hard off the March 23rd bottom, surprising almost everyone in the strength and lift of the move. This rally has brought the Nasdaq 100 (QQQ) back to positive on the year, a stunning development given the dire economic situation. That positive year-to-date print for the Nasdaq reflects the seeming fact that Covid-19 has served to accelerate trends which benefit these top companies of the digital economy – e.g. Amazon, Facebook, Google. That the Russell 2000 small-cap index remains down almost -20% year-to-date, while the equally-weighted version of the S&P 500 is down -16%, is perhaps a better stock market gauge of the overall economy’s troubles. (more…)

Uncategorized, Weekly Update

The Winding Road to a Strong Year


Published January 10, 2020

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Rarely has a +30% gain felt so lackluster. The year of 2019 closed with that substantial gain, one that registers in the top tenth of all market years. Yet those of us who watch the markets day-in, day-out and seek to follow the market’s trend viewed it as a play in three distinct acts, with only the final four months of the year delivering any real upside. (more…)

Uncategorized, Weekly Update

Where the Market Stands Now


Published February 8, 2019

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Our FPResearch website publishes a couple of composite Broad Market Indicators. These composites include some 20 component indicators to provide a pictorial view of market health. While the short to intermediate term indicators have recovered and look strong, the substantial damage caused to the market in the October-December selloff is reflected in the more cautious long-term reading. (more…)

Uncategorized, Weekly Update

A New Bull Market


Published September 22, 2017

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While many in the industry speculate on the coming end to a years-long bull market, there are others who argue that the bull market has just begun. How does this disagreement come about? (more…)