A Wall of Worry

There are any number of market watchers who are warning investors not to believe in this market’s move higher. They have been sounding alarms ever since we reached a bottom back in March. They are still cautious. As long as that attitude remains among investors you can bet the averages will move even higher. (more…)

Lest We Forget

In case you missed it, Morgan Stanley took control of rival broker Smith Barney from its former parent Citigroup Inc. this week. The new venture called Morgan Stanly Smith Barney will now move into first place as the world’s largest retail broker with 18,000 financial advisers. With the stupendous arrogance that only Wall Street brokers can possess, they are hoping that we will forgive and forget that it was they who precipitated the financial crisis in the first place. (more…)

General Motors teeters on the edge while Chrysler has already entered bankruptcy court. Vehicle sales worldwide are down 30-40% and the global recession continues unabated. Yet, now is the time you should be shopping for a car or truck. If you can afford it, chances are you will bag a great deal. (more…)

All in all it was a sloppy week on Wall Street. Bulls and bears pushed the averages back and forth fighting for that level called the “200 day moving average” (200 DMA) which happens to coincide with the 945 level on the S&P 500 Index. This battle has raged all month and neither side has won. What is clear is that for the rally to continue and become more than a bear market bounce that level must be breached and breached decisively. (more…)

Memorial Day marks the beginning of the slow season for stock markets worldwide, which usually ends sometime after the Labor Day weekend in September. Traditionally, it has been a period where stocks consolidate or even decline hence the saying “Sell in May and Go Away.” In bear markets, over the last 59 years, stocks have done far worse than in bull markets. Last year was no exception. That, however, does not mean that it will happen again this year. (more…)

As Memorial Day approaches, the memory of the last 18 months still leaves most of us shell shocked. Americans have lost trillions in the stock market. Our retirement accounts are in shambles. Those among us who depend on that money for daily living are counting every dime we spend. Many of us are unemployed while others worry about losing their jobs. Times are tough but rather than hide in your bunker, I believe it’s time to regroup and go on the offensive. Here’s why. (more…)

Chrysler’s announcement earlier in the week that it would be closing 789 of its dealerships, although expected, nevertheless darkened the mood on Wall Street. This was followed on Friday by General Motor’s bad news that 1,100 of their dealerships nationwide would also be discontinued by late next year. It was the excuse the markets needed for a pull back. (more…)

How many times have I read or heard that the Social Security Trust Fund is in trouble? It’s like a skin rash that won’t go away. This week’s announcement that the fund will run out of money four years sooner than last year’s estimate, in 2037, is just more of the same. Sure, Americans want it fixed. We just don’t want to pay for it and why should we. (more…)

We’re almost there. The S&P 500 briefly hit 929 this week barely 11 points from my target of 940. The moment of truth for investors is rapidly approaching. Will the markets be able to break through this level and rise further or will the averages roll over and re-test the lows? The answer could come this week. (more…)

Although The Boston Globe appears to have escaped the fate of so many other publications this week, it, like so many other newspapers are living on borrowed time. Newspapers are failing at an increasing rate while their owners struggle to find a new identity and business model before it’s too late. (more…)