Market Volatility Continues to Surge Over the 16 trading days ended yesterday, the Dow Jones Industrials (Dow) have had an average change EXCEEDING 400 points (1.75%) per day. This level of volatility is FOUR TIMES the average for August and September and nearly TWICE the elevated levels of October and November. Since bottoming at 21,700, […]
Asset Re-Balancing To the Rescue? Asset allocation is nothing fancy. Certain investors, especially Pension Funds, routinely target a specific stock-to-bond ratio for their portfolios, for example 60/40. Since stocks and bonds will have different returns, the portfolio is brought back to its target ratio at the end of each quarter. If the equity portion of […]
Is History About To Rhyme? Someone wise once said that “History doesn’t repeat itself, but it DOES rhyme”. That quote, sometimes attributed to Mark Twain, is extraordinarily relevant today. The Dow Jones Industrial Average (Dow) is somewhere in the middle of a “Waterfall Decline” that began on December 1. Since then, the Dow has […]
Tipping Point (Part 3): Equities Flash Danger An old Wall Street adage says: “no one rings a bell at the top“. Those who try to pick tops, eventually not only fail in that effort but suffer tremendous losses in the vain attempt to be able to say that they sold at the top. I’ve learned […]
