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January, 2017 Archives

Equities Sectors

By Jon S. Strebler

 

With last week’s official increase to a 40% allocation in equities, this is a good time to revisit some market sectors: Where to put that 40%?  We’ve offered a simple solution – just buy SPY or DIA or even QQQ.  Those are Exchange Traded Funds (ETFs) that represent the S&P 500, the Dow Jones Industrial Average, and the NASDAQ 100 Index –three of the most widely followed indices of US stock prices and performance.  By owning one of more of those, you are basically “buying the market”, and will do as well or as poorly as the whole US stock market does.

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VIX vs. SKEW – Understanding the Message

By Matthew Kerkhoff

 

Volatility can provide a lot of insight into current market conditions, but there is more to volatility than just looking at the Volatility Index (VIX). Another measure, called SKEW, can help us understand the possibility of an upcoming market crash, or black swan event.

 

In the financial markets, the most common way to measure risk is to look at volatility. And in general, we measure volatility in terms of standard deviations.

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Richard's Thoughts on More Record Highs

Richard's Comments

 

If the market changes, I change. I'm always trying to construct a scenario based on the latest "market language" as I interpret it.

 

For instance, if the Dow, the Transportation Average, the S&P, GDOW and bonds all break out to new highs on increasing volume, then the markets will be telling me that we will be enjoying good times for at least the next six months to maybe a year out.

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Daily Recap

It’s a strengthening stock market in most of the world, not just the US, as earnings reports today confirmed. Asian markets all followed through on yesterday’s US stocks rally, and Europe did the same, boosting the STOXX 600 by greater than 1%.

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Protectionism A-Comin'

By Jon S. Strebler 

 

Mexico is a very special place for Americans, or US residents to be more precise.  And even more so for me, having grown up just three miles from the US/Mexico border.  My first memory of the place was riding along the high cliffs between the border and Ensenada with my grandpa, overlooking the expansive Pacific Ocean.  As a little kid, my dad would take me to Tijuana (TJ) for 25 cent haircuts, or sometimes 50 cents.  50 cents gradually became the norm, so those trips stopped; unlike today, firemen didn’t make much money back then. 

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