Thursday, May 10, 2012

Today's Market
by Dr Invest


There is little to comment on regarding the market. Minimal "good news" was exaggerated or ephasized pushing the market higher until everyone came to their senses at the end of the day, leaving the DOW with a paltry 19.98 point gain. The headline for the day was "Market Break Five Day Loss".  Only later did they mention that JPMorgan Chase & Co stunned investors with news that its chief investment office had incurred "significant mark-to-market losses" that it said could "easily get worse."

Here is the bottom line, the market will continue in a downward trend for now. I draw these assumtions from limited resources, but some of the very largest funds get advice from a battery of analysts and unlimited real-time data banks. So let's glean some of this information.

FUND REPORTS

Listed in my blogspot in the tag to the left is RESEARCH & MARKET REPORTS where you will find the Hussman Weekly Report. Click on the Hussman Weekly Report and select "Unbalanced Risk" by John Hussman. He writes: As of last week, our estimates of prospective return/risk in the stock market remained in the most negative 1% of historical observations. That overall assessment reflects a variety of horizons from 2 weeks to as much as 18 months. Very simply, I remain concerned about a blindside recession, significant market losses, and overconfidence in the ability of the Fed to create anything but temporary psychological lifts in the face of real structural economic problems.  

See: http://hussmanfunds.com/wmc/wmc120507.htm


FINANCIAL BRANIACS

Martin Feldstein, a professor of economics at Harvard University, talks about the impact of Federal Reserve monetary policy on the stock market. He served under Ronald Reagan as Economic Adviser and was considered for the position of Chairman for the Federal Reserve until beat out by Bernanke. Please... Please.... listen to this video: http://www.bloomberg.com/video/91807743/

ECRI's Achuthan, predicted that all of Economic Cycle Research Institute's indicators showed that a recession was eminent. May 9th  http://www.businesscycle.com/news_events/news_details/5094 See another interview at http://www.businesscycle.com/

CONCLUSION

I don't want to be negative here but warn, that you need to limit your losses by putting a STOP-LOSS in place. Now is a good time to purchase BOND ETFs like TIP and BND. Please read the blogs from the 1st of May to learn how I diversify and invest properly. These may help you develop your own investment plan.

(Note: the above information is for entertainment purposes only and not to be used as financial advice.)

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