How Much Of A Correction Do We Really Need?

How Much Of A Correction Do We Really Need?

Article SummaryThe money supply is at all-time highs and grown around 40% in the last 5 years.The velocity of money in the 80’s is similar to what we’re seeing right now and could be an indicator that inflation may be headed back up this year.Housing and jobs need to improve before we will see real sustained economic growth.We’re three months into 2015 and the markets haven’t given investors a lot to be confident about. The S&P 500 is slightly positive year-to-date – up 1.33% – and disappointing economic data seems to point to an inevitable pullback.Certainly stocks are trading at relatively high valuations. The P/E for the S&P right now is 19.69 compared to its historical mean of 15.53 although it’s nowhere near its all-time high of 123.73 back in May of 2009… Read full article at Seeking...
Here’s The Hottest Sector For A Slowing Economy

Here’s The Hottest Sector For A Slowing Economy

Article SummarySilver and gold are safe haven assets that are undervalued relative to equities and currencies.Industrial applications for silver are expected to increase demand by 27% by 2018.The dollar doesn’t have room to continue its upward trend which should translate into gains for gold.There might have been a positive vibe for stocks coming into 2015, but relentlessly negative economic data seems to be doing everything it can to warn investors that a correction is upon us. Just take a look at how indecisive stocks have been trading for the past several months… Read full article at Seeking...
Is Low Volatility Lulling Investors Into A False Sense Of Confidence?

Is Low Volatility Lulling Investors Into A False Sense Of Confidence?

Article SummaryVolatility appears underwhelming given the many headwinds facing equities.Guidance issued by 84% of companies for the first quarter has been negative beating the 5-year average of 68%.There are 5 key issues that need to be resolved in order to change investor sentiment from complacency to confidence.We’ve all had that perfect day – muted wind, mild temperatures, and a blue sky without a cloud in sight – yet couldn’t help but feel that something was wrong. By the next morning, a storm raged outside and all vestiges of sunshine and pleasantries were gone… Read full article at Seeking...
A Look Inside Hedge Fund Holdings May Tell Us Where The ‘Smart Money’ Thinks Stocks Are Headed

A Look Inside Hedge Fund Holdings May Tell Us Where The ‘Smart Money’ Thinks Stocks Are Headed

Article SummaryThe top 50 hedge funds were overweight on large cap materials and consumer discretionary stocks for the 4th quarter.Hedge funds added 1% equity exposure to their portfolios for the 4th quarter.An under-weighted portfolio in small cap stocks implies fund managers expect muted stock gains in 2015 compared to 2014.There’s a lot of different methods investors use to gauge the market’s direction. Charts can reveal trading patterns, ratios give way to valuations, and macroeconomic analysis can predict future trends.Another way to get an idea of what’s happening is to simply look at what the institutional money is doing. And the highest echelon of institutional money management is the hedge fund… Read full article at Seeking...
What’s Fueling Stock Gains Overseas?

What’s Fueling Stock Gains Overseas?

Article SummaryU.S. stock gains have been relatively mild compared to the strength occurring overseas.Stocks in international markets remain undervalued based on the underlying CAPE ratio and average dividend yield.Currency devaluation is triggering new multi-month highs for Purchasing Managers Indices in Europe, China, and Japan.It’s gone unnoticed for most of the year, but U.S. stocks aren’t the biggest bull market. While domestic markets have performed fairly well just two months into the year, markets overseas are outperforming them by a considerable margin. Based on the blasé performance of U.S stocks over the last week, the secret could be out… Read full article at Seeking...