S&P Downgrades U.S. Treasuries

The stock market has been under tremendous pressure for the last two weeks.  A default by the U. S. government was avoided at the very last minute, but S&P took the unprecedented step a week ago of reducing the rating of US Treasuries from AAA to AA+.  Intuitively, that move should cause a sell-off in bonds with bond prices dropping and the yield on … [Read more...]

Debt Ceiling Crisis

The Debt Ceiling Crisis July 29, 2011 “The Debt Ceiling Crisis” has taken center stage in the last few weeks as Congress and the President are unable to come together on a fix for the economy.  Politicians and the media have spread fear and panic regarding the impact on financial markets if a timely agreement is not reached and every day that goes by the … [Read more...]

Selloff of Leading Stocks

After a strong rally for several months leading stocks began selling off in high volume in late April. Leading stocks are those that have superior fundamentals and have been outperforming the broad market on a relative basis during the recent rally. Volume refers to the number of shares traded in a day, relative to the previous trading day. High volume, … [Read more...]

2010 Market is a Rollercoaster Ride

We have closed the door on another year and the market turned in a respectable 12.8% gain for 2010 as measured by the S&P 500 index. It was a rollercoaster ride with three rallies and three downturns. The volatility gave investors whiplash and made it very difficult to navigate. By August, even veteran investors acknowledged that 2010 was one of the most … [Read more...]

Market Risk Rule #1 – Avoid Large Losses

Average investors are willing to take far too much risk on the downside in hopes that their stock will go back up.  The 2010 market is certainly testing the mettle of even the most experienced investors.  The focus in a down market should be … [Read more...]