A Once In A Generation Change For Stocks

The Federal Reserve is currently undergoing a monumental change in its monetary policy priorities. This shift marks a major departure from the focus that has defined the Fed’s work for more than a generation. And if the Fed actually follows through with this transition, it will have dramatic implications for years if not decades to come on financial markets that have become so heavily dependent on the persistently generous support of monetary policy for over a quarter century. Yet financial markets seem to hardly notice these recently explicit signs that we may be right now at the dawn of a new era for Fed policy. As for what lies ahead in the next phase, stock investors will almost certainly be required to work much harder to generate consistently positive returns than has been required over the past few decades.

Please click on the link to read more of my article on Seeking Alpha.

Stocks And Seasonality: Caveat Emptor

It is the most wonderful time of the year for stock investors. Over the last 70 years, the months of November and December have ranked among the best for stocks both in generating positive performance and achieving solid total returns. And it is has been the prospects of this seasonality that has helped assuage investor concerns following the recent correction. But while historical stock performance during the months of November and December is indeed impressive, it is not without risks that are worth considering as we move into the final two months of 2014.

Please click on the link to read more of my article on Seeking Alpha.

Victory For The Bears

The last two weeks has provided a pivotal and decisive victory for long suffering stock market bears. Heading into the past fortnight, I wrote an article entitled Stocks: The Most Important Week In 6 Years, and the markets certainly did not disappoint in this regard, as a series of market fireworks quickly followed and continued through the close of Friday’s trading. And in the aftermath of what has been an explosive two weeks, it has become increasingly likely that the end of the nearly six-year long bull market may soon be upon us.

Please click on the link to read more of my article on Seeking Alpha.

Beware Columbus

If the upcoming week was not already interesting enough, investors face an added risk factor as the markets reopen for trading. Monday is the Columbus Day holiday in the United States. And this fact alone has the potential to result in some unusual trading activity and greater than normal price volatility relative to the typical October day. As a result, investors should take caution in reading too much into what comes out of Monday’s trading.

Please click on the link to read more of my article on Seeking Alpha.

Stocks: The Most Important Week In 6 Years

The time for the stock market to bounce is now. At last, after two long years the S&P 500 Index and its 200-day moving average have finally met once again. And this time, the fate of the third longest bull market in history hangs in the balance. Bounce from here, and the bull market may have enough energy left to continue its reign into 2015. But if stocks continue to slice lower in the coming days, the wrath of the next bear market may soon be upon us. And all of this comes at time when third quarter earnings season gets underway in earnest and the Fed enters its penultimate week of daily Treasury purchases as part of its long running QE program. To say the least, the week ahead is the most decisive for investment markets in years.

Please click on the link to read more of my article on Seeking Alpha.

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