Market Rallies Ignoring Bad News

In the last days of May there appeared to be a disconnect between economic reality and the stock market.  The market moved higher amid alarming economic numbers.  Over 38.6 million Americans are unemployed.  According to the International Monetary Fund, the US GDP declined over -5% in the first quarter of 2020.  Consumer spending declined over -13% in … [Read more...]

Is this a Bear Market Rally or the Beginning of a new Bull Market?

In April the market appeared to focus on any good news and ignore the bad. Clearly the actions of the Federal Reserve and the central bank to flood the economy with money gave investors confidence. April was one of the best months in the stock market in decades. Historically “best months” do come during bear markets. By April 9th the Dow Jones Index had … [Read more...]

Where Will the Market Go From Here?

Stock market declines are scary and as the losses increase the more frightening it can be. It’s easy to hyper focus on the daily volatility and without a plan that can lead to emotional decisions. Emotions tend to lead investors to sell near market bottoms. In the 5 ½ weeks from February 12th to March 23rd the Dow Jones Index declined almost 11,000 points. … [Read more...]

March saw it all, the Good and the Bad!

March saw it all, the good and the bad.  From the all-time high in the stock market on February 19th to the low for 2020 on March 23rd, the market lost 33.9% of its value.  Never has the market declined that much in such a short time.  The market moved rapidly from a correction to a bear market in March.  This period was followed by a rally of 17.5% off the … [Read more...]

The Market and the Coronavirus

The purpose of a risk management plan for your investments is to know in advance what steps you will take, if any, when the market declines.   The market goes up and down on a regular basis, but down moves that approach 10% are concerning to investors. The market was overdue for a pullback following a strong 2019 and the Dow rising even more to cross … [Read more...]

Market Rebounds from January Sell-Off

The market began on a high note on the first trading day of the year with the Dow closing at an all-time high of 28,868 on January 2nd.  The momentum that began in October continued through the 17th of the month with a close on the Dow of 29,348.  Crossing the 29,000 mark in January for the first time ever was a noteworthy event.   By January 17th the Dow … [Read more...]

Coronavirus Puts Markets on Edge

The recent outbreak of the coronavirus in China has put global markets on edge.  On Monday, January 27th the Dow dropped over 450 points due to concerns about the spread of the virus after media reporting all weekend.  Typically, events like this one are given an abundance of attention in the financial media because it attracts viewers like nothing else.  … [Read more...]

Dow Crosses 29,000 Points in January

2019 was a solid year for the U.S. economy and for the U.S. stock market.  At the start of the year stocks were coming off a steep sell-off.  In the 4th quarter of 2018 the S&P 500 lost nearly 20% from its high earlier in the year.  As 2018 closed the Federal Reserve was on an aggressive path to tighten the money supply.  It was raising interest rates in … [Read more...]

The Dow Closes Above 28,000

On Friday, November 15th the Dow closed above 28,000 for the very first time. This is the breakout we have been waiting for. From January 2018 until late October of this year the market moved sideways and made no progress. Five times since January of 2018 the Dow approached the 27,000 mark but was unable to decisively break through until the end of … [Read more...]