stock market

Election and Stocks

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Most pollsters wrongly predicted Donald Trump would lose. And they were not the only so called experts to get it wrong.

Much has been said about all those professional political pundits, pollsters and prognosticators who totally misread the political election, after Donald Trump won on Tuesday. But they are not alone. In the final days leading up to the election, many Wall Street analysts and talking heads on financial news shows predicted the stock market could face a 5, 10 or even 15% decline in the days and weeks following a Trump victory.  read more »

Wall Street and Vegas

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Wall Street may be moving to Las Vegas, at least in spirit.

If you are invested in stocks and watching the markets you may be getting whip lash. One day up triple digits and next day down the same. Not for the faint of heart. And if you're watching financial news networks for guidance forget it.

One day pundits say Apple and Facebook are screaming buys. Next day they should sell. One day China's economy is crashing, next day comes a ray of hope. Global selloffs followed by global bounce backs. And it seems all those pundits pontificating with sage advice have poor memories, because they never seem to correct their mistakes on the air. Every day is a new opportunity to help you make or lose your money with no accountability.  read more »

Ticker Symbol Confusion

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Twitter's IPO isn't expected to begin trading until next month but the expectation is paying off for another company.

It turns out investors can't wait for the social media site to go public. So much so that when they saw the ticker symbol TWTRQ they began trading sending shares up more than 1%. Problem is; that ticker symbol was for a company called Tweeter Home Entertainment Group; a specialty consumer electronics company that went bankrupt in 2007.

This was a huge jump for the company that usually goes several days without trading 1,000 shares over the course of a full session. And it wasn't just a single day event. Since Twitter announced its intent to go public; Tweeter has seen a slow uptick over a couple of weeks. But the market noticed.  read more »

Beware the Dead Cat Bounce

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Perhaps you’ve been hearing this very graphic Wall Street trader term bandied about during these tumultuous times. It’s actually been used for decades as a warning to investors that buying into temporary rallies during bear markets can be wealth-threatening.

The other well-worn phrase is “Don’t catch a falling knife”. That refers to watching your favorite stock taking a plunge, and buying more in the often mistaken belief that the fall is temporary.

Actually I think these terms are perfect warning signs right now. After a brief four day rally some Wall Street pundits are predicting the bottom has been reached, and the markets will soon come roaring back. I am an insufferable optimist, and wish I could share their enthusiasm. It’s just that facts get in the way.  read more »

Is a Democratic President good or bad for stocks?

Pundits love to pontificate about which political party in the White House is best for Wall Street. If you ask the average voter, they most likely will say a Republican President is best, because that party is considered more “pro-business” in its ideology.
It is true that republicans are more prone to lower corporate taxes and push for less government regulation. But history dictates the Dow Jones Industrials have posted bigger average returns under Democratic Presidents, according to The Stock Trader’s Almanac.  read more »

Pathological Gambling on Wall Street

Dr. Paul Good, Clinical and Forensic Psychologist says “pathological gambling on Wall Street an epidemic.”

Business Cycle from Boom to Bust

A wall size chart that once hung in the lobby of the Federal Reserve Bank in San Francisco documented that for decades the standard and predictable business cycle lasted about 7 years from boom to bust to boom. Economy gets cooking. Goods and workers are in short supply. So prices and salaries rise. Inflation rears its ugly head. The Federal Reserve hikes interest rates to cool the economy. And we start all over again.  read more »