Will There Be A Santa Claus Rally This Year?
Going back 120 years, December has traditionally been a very good month for the stock market. Within the last 120 years the S&P 500 has been positive in December 73% of the time. The Russell 2000, which is the index for small cap stocks, has been up 87% of the time in December. This boost in the final month of the year is known to traders as the
The Stock Market Dropped 800 Points Today. Is This A Warning Sign?
There was a large sell off in the stock market today. The Dow, S&P 500, and Nasdaq all dropped by over 3% in today’s trading session. After a long bull rally, big drops in the stock market often lead investors to the question: “Is this big drop in the market the beginning of something worse to come?” To answer that question, you have to identify what
How Could The Midterm Elections Impact The Stock Market?
The most common question that I have been asked over the past few weeks is: “If the Republicans lose control of either the House or the Senate in November, what impact do you think that will have on the markets?” How much the stock market may go up or down in the days leading up to or directly after the midterm elections, regardless of the result, is
Patience Should Reward Investors In 2018
Bottom line, the first half of 2018 was a tough pill to swallow for investors. They had to fight a constant rollercoaster. Volatility was high, returns were low, and the news was dominated with fears of trade wars. This environment has left investors questioning if we are on the eve of the next recession. Well I have good news. While trade wars have driven
We Are Sleep Walking Into The Next Crisis
The U.S. economy is headed down a dangerous path. In our opinion it has nothing to do with the length of the current economic cycle, valuations, interest rates, or trade wars. Instead, it has everything to do with our mounting government deficits. We have been talking about the federal budget deficits for the past ten years but when does that
Does "Sell In May And Go Away" Really Work?
There is a well-known trading strategy that goes by the name of "Sell In May And Go Away". The strategy involves liquidating all of your stock holdings in May and then re-establishing your stock positions in November. The basic premise of this strategy is when you reference performance data from the stock market for the past 100 years, two of
Don't Let Taxes Dictate Your Investment Decisions
Everyone hates to pay more in taxes. But this is something that has to be done. Sometimes taxes can often lead investors to make foolish investment decisions. The stock market bottomed in March 2009 and since then we have experienced the second-longest bull market rally of all time. This type of market environment typically creates a
Are The New Trade Tariffs Good Or Bad For The Stock Market?
US businesses often imports their manufactured goods from China. This is because the cost of manufacturing products is much lower than in other places so they want to take advantage of this. The government makes money off this relationship by imposing tariffs on certain products coming into the US. President Trump announced on March 8, 2018
