It’s bigger than the entire television viewing audience of the United States. It is growing faster than all the world’s economies put together. It can be just what you need to invigorate your business and all it takes is a computer. So what exactly is social media? (more…)

The stock market is up almost 30% in less than six weeks. Recent economic statistics from auto and home sales to consumer spending and housing starts indicate at least tentative signs of improvement. Pundits in increasing numbers are stating that we’ve seen the worst. Even Fed Chief Ben Bernanke is claiming to see a few economic “green shoots” sprouting among the weeds. There is light at the end of the tunnel, they all say, and point to the banks as proof of their argument. (more…)

“No way am I chasing this market.”

“There’s not enough good news to justify these levels.”

“It’s a fool’s rally.”

“I’ll buy on a pullback.”

Those are just a sampling of comments I’ve heard over the last week. As a contrarian investor, all of the above make me believe the markets want to move higher. I’m sticking with 900 on the S&P 500 index but I’m not ruling out further upside from there. (more…)

Ahh, the sweet smell of money, isn’t it a nice after so many months of losses? Despite the continuing predictions of a pullback, the markets continue to forge ahead for yet another week with all three averages up over one percent. Although the S&P 500 only gained 17 points for the week, the S&P500 is now up over 27% from the beginning. Today the Dow breached 8,000 for the first time since early February. And I believe we have more upside to come. (more…)

The world’s stock markets continued their meteoric rise this week. Investors who were sitting in cash became increasingly nervous as the averages rose without as much as a hiccup. The S&P 500 surpassed my target of 840 on Thursday by five points before taking a bit of a break on Friday. As I mentioned last week, I will give this market the benefit of the doubt and set my sights 60 points higher at the 900 level. (more…)

Accounting is something that most writers avoid like the plague. However, sometimes, even a tiny change in the way accountants view an item on the balance sheet or income statement may have a huge impact. I believe one such rule, called FASB 157, is behind the 60% gain in banking stocks last month and may also have fueled much of the 26% gain in the stock market this year. (more…)

The bulls are tired. After four days of pushing the markets higher, even the most aggressive investors are taking some profits at least for the next day or two. However, if the number of client phone calls I have been receiving on Thursday and Friday are any indication, I suspect that the markets will break my S&P 500 target of 840 on the upside. (more…)

Bond investors are a different lot from those who buy stocks. They have to be since their market is many times the size of equity markets and a lot more of the world’s economic well-being is riding on its shoulders. So far the 20% gain in the stock market over the last few weeks has been greeted with indifference. (more…)

The bear market bounce that began two weeks ago is alive and well. The S&P500 index hit the 800 level on Wednesday and then pulled back for the next two days. This consolidation is a good sign (the pause that refreshes) and I expect the markets to move higher sometime next week. However, several important themes are developing beneath the headline grabbing news of AIG bonuses, the Federal Reserve’s intention to buy U.S. Treasury bonds and the contemplated changes in the nation’s “mark-to-market” accounting rules. (more…)

At the end of Wednesday’s Federal Open Market Committee Meeting (FOMC) the Fed announced they plan to buy as much as $300 billion of long-term U.S. Treasury Securities and over $700 billion in mortgage-back securities. In the short term this should mean lower mortgage and other rates for the consumer. The Fed is hoping this will reduce borrowing costs overall. Right now it seems to be working. A 30 –year, fixed rater mortgage is being offered for just under 5% and they could go even lower. The question we must ask is at what price? (more…)