Stock Market Outlook 2014: Is The Rally Over?

That may seem like an odd comment from a market investor, after all, wouldn’t it be nice if all investments were to go The top ten best performing stocks March 25 to March 29 up forever? But single asset classes cannot and should not go up forever. All asset classes going up for long periods of time should not happen unless there are serious price distortions being created, which never ends very well. Just ask a homeowner who purchased a house late in the housing bubble, buying into the belief that housing prices would always go up.
Source: http://seekingalpha.com/article/2022021-stock-market-outlook-2014-is-the-rally-over

Global Stock Markets Rally as Fears Subside

bought the New York Stock Exchange in November, this week called for a revamp in fee structures to simplify trading. Microsecond Trading High-speed firms that measure their trading in microseconds, or millionths of a second, or less have largely supplanted people as market makers during the past decade. This has alleviated institutional investors concerns that humans were front-running their orders, according to Clark. At the same time, Clark said, studies showing that faster trading has cut costs and alleviated market volatility are criticized because they come from high-speed trading firms, exchanges that cater to them, or academics with ties to the industry. One may also argue that the movement toward HST is part of a natural, evolutionary outcome within financial markets, not unlike the adoption of automated or computer-based systems in every other major industry, Clark said.
Source: http://www.bloomberg.com/news/2014-02-14/chicago-fed-sees-risk-from-high-speed-trading-in-stock-market.html

Stock market skeptics struggle to time next correction

“If you’re a trader and good, maybe this is a wonderful year,” said Paulsen, who holds an otherwise bullish long-term market view. “If you’re not, I think it’s just going to be frustrating as hell.” The news flow Friday exemplified what investors are up against. On Friday, MacNeil Curry, the firm’s top technical strategist, flatly labeled that view “wrong,” telling clients in a note that BofA is now bullish, as “the larger uptrend has resumed.” On the fundamental side, the firm uses five indicators to measure investor behavior through surveys, fund flows and asset allocations. When any of the signs tilt too far in one direction, the firm takes the opposite stance. So if everybody’s buying, BofA is selling.
Source: http://www.cnbc.com/id/101418280

Oddly, Stock Market Returns And GDP Per Capita Are Inversely Correlated

Traditionally market-moving numbers next week include U.S. housing starts on Wednesday and existing home sales on Friday, as well as producer and consumer price inflation on Wednesday and Thursday, respectively. However if the recent pattern continues, any weakness in the numbers will be disregarded, blamed on excessive cold weather, and the market will move on. “The market is getting used to the bad weather, factoring it in,” said John Canally, investment strategist and economist for LPL Financial in Boston. “But the story is, it might get to April, when we get the March data, that we have a return to what the underlying strength of the economy looks like, and then that might be overstated.” PULL OUT YOUR CHARTS In the coming week, technical analysis could fill the vacuum left by the uncertainty about how economic numbers reflect the underlying strength of the U.S.
Source: http://www.reuters.com/article/2014/02/15/us-usa-stocks-weekahead-idUSBREA1E03S20140215

Wall St. Week Ahead: U.S. stock investors face Fed view, tech charts

Traders work on the floor of the New York Stock Exchange February 13, 2014. REUTERS/Brendan McDermid

Some countries have resources agricultural, extractive, capital, or intellectual that may confer an advantage compared to other nations. If that advantage is appreciated and already priced in by investors, there can be no expectation of superior investment returns. But if the consensus undervalues those resources, then an astute or lucky investor may outperform. In the 20th century, resource-rich countries like the U.S., Canada, Sweden, or Australia prospered.
Source: http://finance.yahoo.com/news/oddly-stock-market-returns-gdp-203439790.html

There’s just no making sense of this stock market

Here’s what advisers need to know along with some tweeting tips. The re-emergence of the scary Dow 1929 stock chart meme, which overlays stocks before 1929 with the recent market, reflected some of those worries. While the same chart of the Dow Jones Industrial Average /quotes/zigman/627449/realtime DJIA +0.79% adjusted for percent returns filters out a lot of the scary aspects , making it look less likely another 1929 crash is the works, the chart has become a poster child for doomsayers noting the next big drop is around the corner. So many people have talked about expecting a correction and havent had one, their position is increasingly untenable and they turn to a position that gives them validation, said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
Source: http://www.marketwatch.com/story/correction-anxiety-boosts-talk-of-next-10-stock-drop-2014-02-13

Chicago Fed Sees Risk From High-Speed Trading in Stock Market

For the week, the rupiah advanced 5%, making it Asia’s top-performing currency this year. The country’s stocks, meanwhile, have jumped 5.5% this year, making them the region’s second-best performer after Vietnam. The sudden turnaround in Indonesia follows data in recent weeks showing the country’s wide trade deficit improving, inflation falling and foreign-exchange reserves swelling. Those three elements topped investors’ lists of worries when Indonesia was one of he world’s worst casualties in a global selloff last summer. Indonesia “went through a bumpy ride, but now it’s attractive,” said Cecilia Chan, chief investment officer for fixed income at HSBC Global Asset Management, which manages $419 billion.
Source: http://online.wsj.com/news/articles/SB10001424052702304675504579386531211044904

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