Blog

Month: July 2014

Since November 2012, the S&P 500 has remained above its 200-day moving average for 421 consecutive trading days, the longest streak in history. I have compared this streak in the S&P 500 to the Joe DiMaggio hitting streak in 1941 for its incredible consistency and resiliency. The so-called “path of least resistance” has been up […]

Has the Fed Doomed Buy and Hold?

In December 2008, the Federal Reserve embarked upon the most expansionary monetary policy in U.S. history.  In an unprecedented action, the Fed moved its Federal Funds Target Rate to a range of 0% to 0.25% and began its first ever “Asset Purchase Program,” better known as Quantitative Easing (QE). At the time, these extraordinary measures […]

“When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” – Chuck Prince, July 10, 2007 [Joe Kernen: You have been on Squawk Box and said as long as — you sound like Chuck Prince. […]

Market Cap. There continues to be an uncanny relationship between a company’s market capitalization and year-to-date returns. The largest 500 stocks in the Russell 3000 are up an average of 8.5% this year, while the smallest 500 are down an average of -6.1%. From the beginning of July, when the small cap Russell 2000 Index […]

At the end of May I took you back in time to 2007, showing the many similarities between 2014 and 2007.  Since then, the S&P 500 has continued to march higher, leading many to question whether the parallel still exists.  They ask: how can it possibly look like 2007 if the market is hitting new […]