Margin debt is dollar value of stocks held above and beyond the value of a portfolio. So if a $100K portfolio has $110K of stock, it’s said the investor is $10K on margin.
High Car Inventories (8/12)
The US has a consumption-based economy – it desperately depends on people buying stuff. When inventories build, either companies are way too optimistic predicting demand or demand is weaker than it normally is.
Deflationary Pressures (9/12)
Nobody likes runaway inflation, but its equal-and-opposite cousin, deflation, is pretty bad too – just ask those who lived through the Depression.
Junk Bonds are Weak (10/12)
Junk bonds are bonds issued by companies that have low credit ratings. There is less confidence the company will make their payments, so they have to offer them at a higher rate.
Strong Dollar (11/12)
Going back to the middle of 2014, the dollar has been very strong.
Strong Bonds (12/12)
Money often rotates between the stock market and bond market – the safety of bonds vs. the risk and upside potential of stocks.
Before the Open (Jan 7)
Good morning. Happy Thursday. The Asian/Pacific markets closed with big, across-the-board losses. China dropped 7% and then was halted the rest of the day. Hong Kong fell more than 3%; Japan, Singapore, Australia and India dropped more than 2%; Indonesia, South Korea and Taiwan dropped more than 1%. Europe is currently suffering huge losses. Greece […]
Before the Open (Jan 6)
Good morning. Happy Wednesday. The Asian/Pacific markets closed mostly down. China rallied better than 2%, and Indonesia did better than 1%. Japan, Hong Kong, Singapore, Australia and Taiwan fell more than 1%. Europe is currently pretty much down across-the-board. The Netherlands and Italy are down more than 2%; London, Germany, France, Norway, Switzerland, Denmark, Spain, […]
Before the Open (Jan 5)
Good morning. Happy Tuesday. The Asian/Pacific markets closed with a lean to the downside. Australia dropped 1.6%; Hong Kong, New Zealand and Taiwan were also weak. Indonesia, Malaysia and South Korea did well. Europe currently leans to the downside. Norway, Greece and Portugal are down more than 1%; Sweden, Poland, Turkey and Switzerland are also […]
Before the Open (Jan 4)
Good morning. Happy Monday. Happy New Year. Hope you had a great, long weekend. The Asian/Pacific markets got hit hard. China dropped almost 7%, Japan more than 3%, and Hong Kong, India, Malaysia, South Korea and Taiwan fell more than 2%. Europe is currently getting hit hard. Germany is down more than 3%; London, France, […]