The market rally on Monday was the expected reflexive bounce we discussed in this past weekend's newsletter. The question now is how far it will go, should you buy it, and what you should expect next. The risks are high; a retest of the recent lows will come sooner rather than later.
J. Brett Freeze, CFA, founder of Global Technical Analysis. Each month Brett will provide you their valuable S&P 500 Valuation Chart Book. This unique analysis provides an invaluable long term perspective of equity valuations. If you are interested in learning more about their services, please connect with them.
In January we asked if this was going to be a repeat of 2018 as a strong start wound up wiping out all the gains. Well, we now know the answer. The question is what happens next, what should you do, and is the worst behind us.
Here is what you might have missed from the RIA Crew last week. A compilation of our best blogs, newsletter, podcasts, the daily radio show and commentary from RIAPRO.NET.
While the work of toiling on individual company analyses can be a lonely endeavor, especially while passive strategies remain in the spotlight, it is also a valid way to extract decent returns from an otherwise overvalued universe of options.
The Fed and markets are confident and complacent despite a laundry list of risks and problems that are only getting bigger.
On Monday, the market suffered the sharpest one day decline we have seen since 2018. Is this another "buy the dip" opportunity or is it a bigger correction in the making? The question is now that the markets have woken up to the coronavirus how much has been priced in?
In a world of adjusted earnings, where every company is way above average, every quarter, investors quickly lose sight of what matters most in investing. "Price is what you pay, value is what you get." - Warren BuffettImaginary worlds are nice, it’s just impossible to live there.
The Fed recognizes ongoing monetary interventions have created financial risks in the terms of asset bubbles across multiple asset classes. They are also aware the majority of policy tools are likely ineffective at mitigating financial risks in the future. This leaves them dependent on expanding their balance sheet which may not be as effective as they hope.