There is Statistical Merit to this Oversold Condition in Stocks as Buying Opportunity

Pic1

The oversold condition in stocks that has developed over the last several weeks is more than trivial. I highlighted on Christmas Eve the baker’s dozen reasons why equity markets could tactically rally from that point, showing extremes in a variety of indicators. Extremes of the nature witnessed are typically indicative of good entry points, and […]

Santa’s Gift to Investors: Global Oversold Conditions Present Buying Opportunity

g1

The S&P 500 experienced a waterfall decline in December, something rarely seen. Measuring the decline using a 30-day Wilder Relative Strength Index, it is clear the extremes recently experienced. On Christmas Eve, the S&P 500 punctured 30% on the RSI, something that has only happened several times in since 1990. Similar extreme readings were seen […]

Mr. Diversification is Bringing Gifts This Holiday Season After a Long Hiatus

Pic2

We are quite sure many of our readers are eager to turn the calendar and be done with 2018’s turbulent and unforgiving markets. After all, US stocks have gyrated wildly for the entire year, foreign stocks have gotten absolutely no love, and traditional diversifiers like bonds and gold just added to one’s troubles for most […]

Prognosis for Fourth Quarter Growth

3

One of the more well-recognized Now-Casting data series is the GDPNow series produced by the Federal Reserve of Atlanta. Every day they incorporate economic data releases and update their estimate for GDP growth in the current quarter. GDPNow is a great source of information on the real-time performance of the US economy. Growth expectations, after […]

Mid-Quarter Update: The Fed is Tightening More than it Realizes

midqchart

The Federal Reserve is in the midst of an historic tightening cycle, and it has begun to impact the economy.  The latest casualty is the decline in oil prices, which opens up a new set of possibilities in asset allocation. In this special report, we look at the collective causes and effects of US monetary policy. We also describe historically […]

Was Today’s Rally the All Clear Signal or More Noise?

Pic4

The equity markets no doubt experienced a powerful move today on the back of Fed Chair Powell’s dovish remarks mid-day. Specifically, his comments laid the groundwork for a pause in interest rate hikes in the first quarter of 2018. It was a welcome development for an equity market that has failed to find direction all […]