Tag Archives: Fox26

Interview: No…Really…Open Your Statements

Last week, my dear friends at Fox26 Houston, Melissa Wilson and Tom Zizka, shared a few minutes with me to discuss the plunge in the markets, the drop in oil prices and how big of a correction there could be.

Importantly, as I have been writing from some time now, is that the dynamics of the market have changed. Since the financial crisis lows, the financial markets have been elevated by repeated rounds of artificial liquidity from the Federal Reserve combined with artificially suppressed interest rates.

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With the Federal Reserve now trying to lift interest rates, and with no more injections of liquidity currently, the markets have begun to struggle. Combine that lack of support with weak economic data, deteriorating economic data, and decline corporate profitability and you have the same ingredients that have preceded both previous bull market peaks.

Could this time be different? Sure. However, history suggests that it likely won’t be.

If I am correct, this is NOT the time to avoid paying attention to your money. Throughout history, the market has spent more time getting “back to even” than making new highs.

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While the market has no expiration data, unfortunately you do. Therefore, you really can’t afford to spend the majority of saving and investing time frame repeatedly trying to get back to even.

There are indeed times that you want to be heavily invested in the financial markets. However, now is not likely one of them.

Pay attention to your money.  If you don’t, why should any one else?

Lance Roberts

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Lance Roberts is a Chief Portfolio Strategist/Economist for Clarity Financial. He is also the host of “The Lance Roberts Show” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter and Linked-In

Interview: Bad Start For Stocks

On Monday, my new friend Scarlett Fakhar from Fox 26 came to visit me during my radio show broadcast to discuss the market rout and the what investors should be doing now.


Following Monday’s sell-off, the markets were unable to gain any traction yesterday. The lack of a rebound suggests that market dynamics still remain extremely weak.

As discussed yesterday, there is critical support sitting just below the market currently. If that support fails to hold by the close of trading of Friday, there is likely to be an acceleration to the downside.

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Importantly, as I discussed in the interview with Scarlett, what investors need to remember is that after 6-years of a bull market advance, the risk of a correction has risen markedly. Given that roughly 95% of any bull market advance is simply making up previous losses, maybe investors should consider trying to avoid some of the losses before they occur.

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As Chuck Prince, former head of Citigroup, said, 

“As long as the music is playing, you’ve got to get up and dance. We are still dancing.”

The thing the majority of investors tend to forget is that eventually the music stops playing. It is when everyone stops dancing that the tipping point is reached. When the trend is reversed, from bullish to bearish, the market action becomes self-reinforcing in the opposite direction.

As I state in the interview, the problem for most investors who are chasing market returns is most won’t realize the music has stopped playing. For most, the issue of spending the next bull market making up losses, yet again, will leave many far short of the retirement goals they had hoped for.

Lance Roberts

lance_sig

Lance Roberts is a Chief Portfolio Strategist/Economist for Clarity Financial. He is also the host of “The Lance Roberts Show” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter and Linked-In