Published August 27, 2021
We have written often in recent weeks about how extended the market seems to be. Some of this content has come from Schwab. Back in the late 1990s, Schwab notified clients more than once that the market’s valuation was excessive and to be careful. Similarly, they have been proactively warning this summer of higher-than-normal market valuations and a market ripe for some downside action. There are notable differences between now and the late 1990s. (more…)
Published May 14, 2021
The stock market continues to hold on through intermittent bouts of selling. Corporate earnings have been record-setting in their growth from year-ago levels, severely depressed though they were. Despite outrageously good earnings for the top growth stocks in the Nasdaq, investors continue to shift money to cyclical value sectors like energy, finance, materials. The lackluster response to the hotshot earnings has led to some heavy down days in the market recently. (more…)
Published December 4, 2020
Below are some slides from a recent presentation by Charles Schwab market analyst Liz Ann Sonders. They give a good overview of recent market action. The first slide shows how the top 5 stocks in the market drove returns through the first eight months of the year. Since August, the other 495 stocks in the S&P 500 have at least helped do the lifting. (more…)
Published January 25, 2019
Stocks have rebounded sharply from the Christmas Eve nightmare though plenty of fog remains for investors. You will recall that the Nasdaq 100 (QQQ) fell 12% over seven trading sessions in mid-December as thin holiday trading combined with rampant fears conspired to drive stocks downward. That plunge culminated in a 2%+ fall on Christmas Eve. (more…)
Published July 6, 2018
Corporate earnings are driven by:
The recent change in tax law for corporations reduced the cost of doing business thereby increasing profit margins. (more…)
Published April 21, 2017
The rise of robo-advisors over the past five years is not surprising given the nearly non-stop upward trajectory of stocks. Investors have been lulled into a state of complacency assuming the investment waters are always so calm and just riding the market indexes is a perfectly fine way to invest. The article below comes from an organization who, like us here at TimingCube, believes that robo-advisors and their buy-and-hold models are an accident waiting to happen. (more…)