Long ago in a distant galaxy called “2017,” stock prices rose every day. And the people were happy. With paper profits in hand they maxed out their credit cards and bank lines to buy flat-screen TVs and cars and cover their student loans. Then one day a darkness began to spread. Stocks began to move […]
Combine record-high stock prices with weak corporate earnings, a too-strong dollar and rising turmoil in Europe, Asia and Latin America, and the result is a dangerously vulnerable market. Time to go “risk-off”, in other words. But keep stacking gold and silver.
Coming into this corporate earnings season, everyone seemed to expect disappointment. But they thought it would come from the energy sector and the banks that had lent that sector way too much money (see Goldman Sachs is a flattened slug). Technology was, as always, thought to be immune to the vagaries of the Old Economy. […]
One of the common transitions that bull markets go through as they age and die is a narrowing of leadership. As formerly strong sectors begin to stall out, investors shift into whatever is still looking good — that is, whatever still has upward momentum. Eventually capital becomes concentrated in just a few names. Then those […]
Yesterday’s bulletproof stocks, led by the FANGs (Facebook, Amazon, Netflix and Google), are getting whacked today. Amazon is down 100 points from its high, 32 of those points coming today. Netflix is off by nearly 10%. Even Google, which really does seem bulletproof operationally, is down 3%. Most of these companies are and will remain […]
Once every decade or so investor credulity reaches a point where even seasoned money managers buy into the notion of “one decision” stocks — that is, shares of companies so insanely great that they’re virtually guaranteed to keep going up. Valuation is irrelevant, as is the state of the economy. Nothing matters but the unbeatable […]
Companies that make, move or peddle real stuff — think Alcoa, Walmart, Caterpillar — are having a hard time of it lately, mostly because their products and/or their customers have become commoditized. Aluminum is aluminum wherever it comes from, cheap Chinese clothes and toys can be had in any discount store, and earth moving equipment […]
After today’s market close there was a flurry of earnings announcements, some of which were way low. Not bad, mind you. In fact they were pretty good. But because Wall Street analysts were expecting more in order to justify current stock prices, the disappointments led to big price declines in the aftermarket: Google shares fall […]