Click Here to Subscribe Now! Try a 3-month trial for only $68

Richard's Wisdom

June, 2017 Archives

Richard's Thoughts on the Bull's in Charge

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.

PREMIUM - CLICK TO READ MORE

Richard’s Thoughts on the Bond Market

Richard's Comments

 

It's hard to do well in the markets when interest rates are rising. The reason, as every old-timer knows, is that interest rates (via bonds, notes, bills) are always competing with stocks.

 

When you buy a Treasury bill or a note or bond, you’re facing only one risk -- loss of purchasing power. But you can be sure of one thing, you're going to get your money back. Sure, you may be paying more for a loaf of bread ten years from now when your 10-year note matures. Worried? Then stay closer to home -- buy a five year note or a two-year note. Still worried? Then stick with 91-day Treasury bills.

 

PREMIUM - CLICK TO READ MORE

Richard's Thoughts On Big Bulls

Richard's Comments

 

As we've mentioned before, all great bull markets come in three psychological phases. The first phase is the accumulation phase, during which sophisticated and value-oriented investors pick up what is generally being ignored.

 

The second phase is the phase where the seasoned professionals and a few more sophisticated funds take their positions. It is in the second phase where we see the most painful secondary corrections, which are almost always mistakenly taken to be primary bear markets.

 

PREMIUM - CLICK TO READ MORE

Richard’s Thoughts on Values vs. Market Direction

Richard's Comments

 

It was a good week for stocks, but the advance was not based on great values, it was based on expensive stocks becoming more expensive. In this kind of environment, the question becomes (at least for me it becomes) – "If I want to participate in the rally, how much do I dare risk?" Ah, that's always the question when stocks are in an historically expensive area. Because expensive = high risk.

PREMIUM - CLICK TO READ MORE