Who’s Really Getting Crushed by Lower Oil?

Crude oil’s continuing downward spiral has left many puzzled, some unemployed and others bankrupt. As the WTI (oil pricing benchmark) plunges to below $30 per barrel, concerns about the Energy sector intensify, especially as there appears to be no clear indication of a rebound in the near term. Fluctuating profit margins are par for the […]

Bank of Japan Shocks Markets

Amidst the hysteria accompanying global market uncertainties, Japan’s announcement of a new monetary weapon is yet another surprise markets have to absorb. On Friday, the Bank of Japan (BOJ) unveiled its plan to lower interest rates to a negative -0.1% on excess bank reserves. The move comes after the BOJ failed to accelerate inflation to […]

Which Stocks Feeling Pinch of Strong Dollar?

The economics of a stronger dollar offer mixed blessings. On one hand, a stronger dollar means that foreign goods are less expensive which benefits consumers and, for example, travelers who visit countries with weakened currencies. It can help companies too, particularly those that import a great deal of their production and raw materials used for […]

Oil – The Three Biggest Worries

We think it’s high time someone put their foot down and called the collapse in oil prices what it really is: a net positive! I find it interesting that, when oil prices are high, the narrative is negative. But, when prices fall precipitously and energy becomes cheaper that’s also a bad thing! You can’t have […]

Market Corrections – The Single Most Important Feature

The market abruptly slipped into correction territory to start the year charting a virtual free fall from its December 29th level. The S&P 500 is Retesting Correction Lows Any relief gained from market rallies has been rendered obsolete in these first few weeks. The selling pressures have been fairly relentless and investors seem to be […]

Will Stocks Be Impacted by China’s Volatility?

China’s wild volatility is back. Investors were greeted in the New Year with a replay of last summer’s Chinese markets drama and big single day downswings in the first week of trading. The source of the turmoil can be traced to two factors, both of which predictably disturbed the markets because of what they have […]

Stocks and Election Years – Worrisome or Welcoming?

The stock market is chock-full of patterns and theories that drive investment decisions like “sell-in-May-and-go-away,” the “Santa Claus rally,” and so on. Another popular pattern theory relates to how stocks perform during an election cycle. With the presidential election coming this year, it’s worth taking a look at how stocks have done historically in the […]

Stock Market Gloom or Glee on 2016?

  2015 was a fairly disappointing year for most investors with flattish returns and a sizable summer correction that jarred sentiment. To be sure, we weren’t expecting much to begin with for stocks on the year – modest single digit returns that would, perhaps, move in-line with aggregate earnings growth. Therein lied the problem – […]

Deteriorating Credit Market – Harbinger for Recession?

The high-yield (junk) bond space has been under legitimate pressure over the last few months, and there may be even more trouble ahead. You can pick from any variety of negative developments to help you make a bearish case (if you’re so inclined): performance over the last six months has been dreadful, defaults are rising, […]

Fed Raises Rates – So What Happens Now?

Following The Fed’s rate hike on Wednesday, the market has been volatile to the downside as many feared would occur. Still, keep in mind that the immediate market response to the Fed’s interest rate hike Wednesday was positive: the S&P 500 rose +1.45% that day (this was likely due to the length of time the […]