As we mentioned in our newsletter statistics shows that markets almost never hit the bottom on Fridays. This morning we were very surprised to see high rebound and thought that markets will stay in positive territory. Unfortunately miracle did not happen – by the end of the day markets slipped back into negative territory. Let’s see if our prediction for tomorrow will be accurate too (we expect markets to rise).
Good evening, TSPwire Tactical Investor!
Big spike in bond yields and fears about bad shape of credit markets sent stocks down during the last few days. Upcoming week will clarify what is going in on with our economy: Feds meeting, data on inflation, homes sales, consumer sentiments, durable goods orders, personal income data ...
What a week! On Wednesday markets turned around and we observed a very nice rebound. Low core inflation numbers were the primary contributor to that rebound. Analysts believe that in short-term we might observe some volatility on the market but overall outlook on stocks is very positive ...
It looks like our predictions were correct – rate speculators did removed themselves from the market. According to the stock futures only 5% (comparing to over 50% last month) of investors bet on the fact that Feds will raise rates by the end of the year.
Another very good news that institutional investors started to move their funds from money-market accounts into stock markets. In the last 30 days almost 3 billions of dollars were moved from money markets into stocks and bonds.
It never seize to amaze us how blind investors can be. We kept telling in our newsletters that Feds will not reduce rates any time soon. It is just not possible because of value of dollar and US economy growth. On Tuesday investors who finally got the message rushed for the door which i ...
It looks like economy regained its traction. Indicators that we observed last week showed that economy strong but not too strong - just the way Feds like it. At the same times majority of corporate earnings and job growth came above expectations. We also saw quite a few new mergers and acquisitions which helped to fuel stock market grow ...
Since last Monday majority of TSP funds (except for F Fund) had two up days and two down days. Both upward movements were fueled by mergers and acquisitions (MA) news. We should thank for that Daimler Chrysler which decided to cut their losses by selling portion of their business and Microsoft that allegedly decided to grossly overpay for aQuantive Inc.
Some investors also bet that Feds will be willing to cut rates on their next meeting. In our opinion it would be very foolish of them to do that. Dollar stays very low against major currencies. Eco ...
As you all probably remember, February’s global sell-off was ignited by a drop in Chinese markets. Since 27th February the Shanghai Composite Index rose almost 45%. That jump was primarily fueled by speculators and China’s regulators had no luck in containing them. We think that it’s only a matter of time before Shanghai’s index will blow up in speculators’ faces and send another ripple effect across world markets.
On second note, U.S. economy s ...
Major US Stock indexes retreated today S&P 500 (C Fund) hit 6-year high.
A number of weak economic reports came out today:
Positive economic news, good earnings results and mergers kept the bull running last week. Now investors are betting on Federal Reserve meeting. They are almost 100 percent positive that Feds will hold rates and will not say much about possibility of future rate hikes.