Current gains are consistent with the historical trend of early November strength. Mid-month, from around the fifth trading day until the fourteenth trading day, has been choppy. From there until the penultimate trading day of November the market has historically booked solid gains.
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Tomorrow is Midterm Election Day. Prior to 1969 the market was closed on Election Day. In the midterm elections since 1970, Election Day has been bullish with S&P 500, DJIA and NASDAQ (since 1974) all posting average gains.
Banking on its strong assets of innovative human capital and an attractive regulatory environment, Bahrain has emerged as the hub for tech entrepreneurs. In recent years, tech startups – consisting of new-generation Arab entrepreneurs and immigrant business operators – have leveraged their talents and technology to gain a market foothold in the Arab Middle East in the era of digitization. Tech startup firms have mushroomed to tap into tech-savvy, connected consumers, particularly in Dubai.
Buffett purchased nearly $13 billion of equities bringing the total so far this year to a 4-year record of $24 billion. If Buffett found sufficient value in the third quarter, imagine what he bought in October using his huge excess liquidity with the markets falling by over 5% from September 30thlevels. Buffett has commented before that equities were his preferred asset class as the earnings yield far exceeded bond yields, private equity valuations and real estate.
Then October happened and, well, you know…a nearly double digit drawdown intra-month in the Dow Jones Industrial Average (DJIA) and an eventual loss of more than 5% for the month. Now, we’ll show the months and aggregate performance in the table below.
DJIA declined 5.1%, S&P 500 dropped 6.9% and NASDAQ was off 9.2%. October’s losses were the seventh worst decline for DJIA since 1950, fourth worst for S&P 500 and fifth worst for NASDAQ since 1971. In the above table every down October for DJIA, S&P 500 and NASDAQ have been compiled along with their respective performance in November and December.
Global equity markets are testing levels potentially critical to the survival of the bull market. As this stock market correction progresses, it is natural to consider what levels may be effective in halting the decline. Today, we look at an international stock barometer with an equally as compelling level. The MSCI EAFE Index is a broad index of developed markets outside of the U.S. It was the subject of the Chart Of The Day and headliner in this week’s #TrendlineWednesday feature on Twitter.
The chart comes from the venerable Tom McClellan (@McClellanOsc) of The McClellan Oscillator and McClellan Financial Publications, a widely followed and relied upon indicator and service by market technicians and serious traders, investors and analysts. It was brought to our attention by a one of our trusty loyal newsletter subscribers, Bill in LA. It looks like Tom McClellan’s NDX Oversold Indicator is confirming our analysis that the stock market is ready for its annual and perennial rip.
Yesterday afternoon’s selloff was the eleventh DJIA Down Friday/Down Monday of 2018. The combination of a DJIA Down Friday* followed by a Down Monday** has been a fairly consistent ominous warning, but they have also occurred at significant market inflection points (interim tops and bottoms). Since January 1, 2000 through todays close there have 201 DJIA Down Friday/Down Mondays (DF/DM) including todays.
This week I am going to attend the TEDx Talks in Hickory, NC, organized by my friend Chris Pavese. My wife was born in Tajikistan – a former Soviet republic, now an independent country, bordering Afghanistan and China. Any Jewish family leaving the Soviet Union in the ’80s or early ’90s was officially considered a “refugee” family by the US government.
The following is an example of the type of research we provide members of The Lyons Share — on top of daily commentary covering our outlook on the markets and analysis of all the pertinent current charting developments. Swift corrections from market highs have, at times, marked the beginning of longer-term bear markets. The recent (ongoing) stock market selloff seems to have blindsided many investors.
Fonar Corporation is a U.S. based technology company whose principal business involves the design, manufacture, sale, and servicing of magnetic resonance imaging (MRI) scanners. At the time of writing, the firm’s market cap stands at around $155 Million and its revenues and free cash flows for the previous financial year were around $82 Million and $16 Million respectively. To determine the intrinsic value of Fonar Corporation, we’ll begin by looking at the company’s history of free cash flow.
Stock markets around the world seem to be retracing their usual late cycle path and may be signaling a recession and bear market right around the corner, as you can see in the chart below of the MSCI World Index. If so, it may be worth looking back at what a typical recession and bear market looks like. Past performance is no guarantee of future results.
The financial markets fear an overzealous Fed looking in the rearview mirror rather than the windshield. The Fed’s mission is to promote non-inflationary growth. Maybe it is time for them to declare victory and acknowledge that the U.S economy is expanding above trend with inflation remaining below their 2% bogey.
In 1980, one of the best consulting firms in modern America was approached by AT&T. At the time, AT&T was an absolute powerhouse. In market speak, it was a blue chip. Or a FANG. The same way we think about Apple or Google today is what AT&T was back then. They were unstoppable in the eyes of the general public.
Putting away money for retirement isn’t always easy. Once you figure out how much you need to save for retirement, then you need to actually save that money. Consistently putting money into savings is a difficult habit to build. There are also a number of retirement options. Maybe your employer offers a 401(k). Maybe you save money on your own through an individual retirement account (IRA). Here’s one more option to consider: annuities. Annuities are a way to supplement your retirement income but they aren’t right for everyone. ...