Market internals remain bearish. The rush to cut portfolio risk remains intact. Here is a two-year chart of the S&P 500 (in red) and the iShares High-Yield Corporate Bond ETF (HYG):
The Return of Risk Aversion and the Market’s Next Move
June 17, 2010 by Leave a Comment
Asian Markets Not Worried About Goldman
April 20, 2010 by Leave a Comment
We have had two very different trading sessions in the past 24 hours, with the dollar benefiting from continued worries about Greece and Goldman Sachs in yesterday’s US trading session; but Asia saw things a bit differently and started moving money back into ‘risk’ assets. Early trading in Europe mirrors the moves in Asia, so the dollar is heading lower as I turn on the screens this morning.
[Read more...]Equity Market Correction a One Quarter Event
February 8, 2010 by Leave a Comment
I believe equity markets (and riskier assets in general) are in the midst of a 10-15% correction that plays out within one quarter, which is normal, not at the onset of the next financial avalanche, which lasts many quarters.
There was never any question that the extraordinary policy maneuvers of 2009 would begin to be unwound in 2010. But the culmination of events in Europe, China and the United States over the last two months have brought this all to a head very early on in 2010. Profit taking after large, sustained bull runs is a natural reaction of investors to a bout of increasing uncertainty and higher risk recognition.
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Protecting Your Cash, Part II
An Interview with Doug Casey from Cafayate, Argentina
[To read Part I of this interview, click here]
Interviewer: Concerning the risk of foreign exchange controls here in the US, do you think people will have any warning at all?
[Read more...]Click for detailed story