Tag Archives: Index

Consumer Sentiment – down but still not down enough.

Over many years I’ve marveled at how reliable consumer sentiment has been as a contrarian indicator.  When it reaches rock bottom then the markets, followed by the economy begin to recover from a crisis – whether a recession or financial.  … Continue reading

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Why the S&P 500 should fall another 10% to 20%.

The risk of being so right in one’s projections (I called this meltdown months ago) is you begin to second guess yourself – maybe now I should turn bullish? The recent rally (which I covered in my “It’s a Trap” … Continue reading

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I was the bearer of bad stock market news early on – now here’s some more.

My original estimate (February 3rd) was simply a P/E multiple for the S&P 500 of 20X zero growth in 2020 of earnings. I expected the coronavirus to have a devastating impact on the global economy (oil prices, supply chains etc.) … Continue reading

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When Consumer is Happy, Markets are High Risk

Consumer sentiment is usually considered an economic leading indicator.  When confidence is at rock bottom levels, it’s a sign that the economy and stocks markets are heading lower.  This isn’t true.  I’ve published for years that consumer confidence is one … Continue reading

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What is the downside for S&P 500?

For those who follow my rants, you’ll recall (okay, you probably won’t recall) my proprietary method of estimating where the S&P 500 Index should be headed.  If you scan very old posts of mine, you’ll notice that this has served … Continue reading

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First a correction; and then another banner year for stock markets!

It shouldn’t be surprising that the current ‘mood’ just oozes caution.   The market is kind of like the bear (I met one face-to-face in Alaska many moons ago while fishing in ‘his‘ creek) – at one moment the bear seems content and … Continue reading

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BONDS – Where we go from here!

But there may be reason to expect any correction to be mitigated by a FED that wants to simply layoff the accelerator rather than apply the brakes. There have been periods when interest rates have climbed modestly yet stock markets continued to be relatively generous. Continue reading

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BONDS – Where we go from here! (And what about equities?)

But there may be reason to expect any correction to be mitigated by a FED that wants to simply layoff the accelerator rather than apply the brakes. There have been periods when interest rates have climbed modestly yet stock markets continued to be relatively generous. Continue reading

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High Consumer Confidence is bad news for stock market!

The latest consumer confidence release shows a significant improvement. “Rising home prices and a rising stock market are two key factors that are boosting consumer confidence. And a third factor is rising strength in the jobs market. The consumer confidence … Continue reading

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Does divergence of stocks and commodities tell us anything at all?

I read a blurb from Business Insider – entitled One Of The Biggest Arguments Of Fed Haters Is Getting Obliterated Before Our Eyes – discussing the adjacent chart (published on May 15th) that still has me confused. Here is a … Continue reading

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