Dump the Dow

Chances are, the market barometer you most often hear about is the Dow Jones Industrial Average. Every evening, the Dow’s ups or downs are soberly reported as if they reflect something important.

They don’t.

A recent online article noted that the 37-year-old index only reflects the performance of 30 U.S. multinational companies, and it doesn’t […]

The Predication Game

If you want to look like a brilliant stock market analyst, keep predicting the same thing over and over again until it finally happens.

A great example of this marketing strategy is newsletter publisher Marc Faber, whose website modestly describes him as “an international investor known for his uncanny predictions of the stock market and […]

Devaluation Panic

Investors across the globe were sent into a panic recently when the Chinese Central Bank devaluated the nation’s currency, the yuan. The U.S. market lost more than 1% of its total value, oil prices fell and global shares plummeted on news that China decided to make its currency two percent cheaper than it was before.

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The Bears Invade Shanghai

With all eyes on Greece, a bigger and potentially more disturbing market disruption is taking place—in a much larger economy. As you read this, the Chinese stock market is experiencing the kind of free-fall not seen since the 2008 drop in global markets. Some are comparing it to the 1929 crash in U.S. stocks.

As […]

Is Good News Really Bad News?

 

You may have read last week that the U.S. stock market took a tumble based on what would seem like really good news: that the U.S. unemployment rate is falling faster than anybody expected. If you’re scratching your head, you’re not alone.

First, let’s focus on the good news and what it may mean. […]

Losses Do Matter

 

Everybody who told us that the steep market drops earlier this month wouldn’t last can rightly claim they’re right. When the S&P 500 was down 7.4% during a two-week selloff, there was no way to know whether we’d have to endure more of the same. Staying the course turned out to be exactly the […]

What? The Stock Market is Rigged?

You may have heard about the 60 Minutes interview with author Michael Lewis, a former Wall Street broker, author of “Liar’s Poker” and “The Big Short,” who has just come out with a new book entitled “Flash Boys.” Lewis is an eloquent and astute critic of Wall Street’s creative and predatory practices, and in his […]

The Amazing $1,000/share Company

 

With the Twitter initial public offering in the news, another prominent tech company, Google, made headlines when its stock price went up over $1,000 a share. That’s WAY higher than Microsoft (around $30 a share), almost double Apple’s price (around $520), and in fact is pretty much higher than any other stock’s price except […]