The conventional "wisdom" holds that a bear market can't happen until losses hit 20%.
But that's a carefully designed, often-repeated Wall Street lie that's supposed to trick investors into sitting tight when they should be changing tactics.
By Lee Adler, Liquidity Specialist, Money Morning -
The conventional "wisdom" holds that a bear market can't happen until losses hit 20%.
But that's a carefully designed, often-repeated Wall Street lie that's supposed to trick investors into sitting tight when they should be changing tactics.
By Lee Adler, Liquidity Specialist, Money Morning -
The conventional "wisdom" holds that a bear market can't happen until losses hit 20%.
But that's a carefully designed, often-repeated Wall Street lie that's supposed to trick investors into sitting tight when they should be changing tactics.
By Robert Hsu, Editor, Permanent Wealth Investor -
According to the Efficient Market Hypothesis (EMH), the best - and perhaps only - way to outperform the market over time is simple:
First, claim that beating the market over time is virtually impossible. Then, take home $1.2 million for "proving" it.
That was Professor Eugene Fama's approach, anyway, after co-winning the Nobel Prize in economics.
Don't get me wrong. As a professional investor and portfolio manager, I believe Professor Fama's EMH has many valid ideas. But fundamentally, people like us (and Buffett, and Soros, and Rogers, and Lynch, and Einhorn, and Paulson, and Icahn, and Ackman) never swallow EMH whole.
Ironically, neither does Clifford Asness.
Why would one of Fama's brightest students decide to ditch EMH, and pick stocks and time the market instead?
Proving EMH "right" may be worth millions (to Fama). But proving it "wrong" is worth billions..
By Guest Admin, Money Morning -
Stock market news today focuses on winners and losers in the tech and consumer spaces, as well as how the S&P 500 will come off of its largest weekly decline since June.
Last week was tough for stocks since this year has been filled with rallies. Stocks fell as investors tried to understand the timing of the Fed's tapering of its bond-buying program.
Surprisingly, the market still seems very sensitive to any news on the Fed cutbacks.
This week, the market may continue to react to any news from the Fed, although other economic indicators are likely to be in the foreground of investors' minds.
Stock market news today starts with Japan, which we learned saw gross domestic product rise 2.6% at an annualized pace from April to June - well short of the 3.6% growth economists expected. The Nikkei was down more than 5% last week and is down another roughly 1% this morning.
To continue reading, please click here...
By Diane Alter, Contributing Writer, Money Morning -
The bulls came out of the gate at full-speed at the opening of the stock market today.
Less than a half-hour into trading, the Dow Jones Industrial Average jumped 121.99, or 0.81%, to 15,241.40 The Standard & Poor's 500 Index climbed 12.19, or 0.75%, to 1,644.08. The Nasdaq added 14.01, or 0.41, at 3,493.60.
Optimistic investors appear to be betting the second quarter's earnings will come in ahead of scaled-down forecasts.
Pre-announcements have certainly been extremely negative. According to Thomson Reuters, the ratio of negative to positive comments is 6.5 to 1, more than two-and-a-half times the normal pace and the most negative reading since 2001.
Overall, S&P 500 earnings are projected to have grown 1.6% in Q2 from a year ago, while quarterly revenue is expected to increase 2.9%.
But those estimates could be on the light side.
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW -
Not only is the market rally on, but trigger-happy bankers and private equity wheeler-dealers are about to send it even higher.
The reason is simple: There are trillions of dollars of cash just sitting on the sidelines looking for a deal.
That means deal action - of all kinds - is about to get white hot.
In fact, the combination of positive capital flows and the pursuit of greater economies of scale has us at the beginnings of a multi-year deal-driven bull market.
Here's where we are and where we're going next.
By kdowdle, Money Morning -
To continue reading, please click here...