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.

How Green Was My Market

The U.S. stock market had an unusual feel to it in the just completed third quarter of 2014. On the surface, it appeared that stock investors managed to squeeze out yet another positive quarter despite the various swings of volatility and general sense of unease that took place along the way. But one does not have to search far under the surface of this market to quickly come to the realization that all was not at all well for capital markets in the third quarter. And when looking ahead to the rest of the year and the twelve months of 2015 that will follow, investors will likely be confronted with an environment where a portfolio that is built both solid and good with careful thought will become an increasing necessity from a risk control and total returns perspective.

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

Is A Stealth Liquidation In Stocks Underway?

It is September 2014 and all is well. Or is it? The U.S. stock market set a new all-time high earlier in the month and is less than +2% from striking another fresh peak despite some modest weakness in recent days. The uptrend in stocks also remains firmly intact and is supported by an economy that while sluggish is still plodding along. But despite this generally placid appearance on the surface, some notable signs of deterioration are growing underneath that warrant close attention in the days ahead. For it is possible that something much more substantial to the downside may be slowly starting to brew.

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

Investissements Sans Frontieres

Investors are stock market obsessed. When tracking the daily financial news from mainstream media sources, you could easily draw the conclusion that if one seeks to generate a reasonable rate of return on their investment, the U.S. stock market is the only game in town. Sure, the bond market gets a passing discussion on occasion but it is often in relation to stocks. Gold might also receive a brief mention along with a look of derision every now and then. But otherwise, nearly all of the daily conversation in the mainstream financial media centers on the U.S. stock market. It might seem to many that if you are not invested in U.S. stocks, you are simply not invested at all. But this notion could not be further from the truth as we live in a world of investment possibilities that is increasingly without borders. And given how strong the U.S. stock market has performed over the last few years relative to so many alternatives, it is becoming ever more reasonable to explore the opportunities that may exist outside of this perceived comfort zone.

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

This QE Bower My Prison

The Federal Reserve’s persistently aggressive monetary policy has had a paralyzing effect for many investors over the last several years. Like a skillet of boiling hot milk being emptied on one’s foot, repeated monetary stimulus programs, including three rounds of quantitative easing, two rounds of Operation Twist and the quintupling of the Fed’s balance sheet, has distorted capital markets in such a way that it has imprisoned many investors to a bower of heightened risk control and uncharacteristically short-term thinking amid the expectation that the negative spillover effects from such unprecedented policies will eventually come home to roost in a significant way. But as we enter the twilight of the Fed’s supposed final round of quantitative easing, the confined investor has reason for gladness, for they can continue to delight in the splendor of today’s market while also knowing that nature never deserts the wise and pure in the end.

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

Follow

Get every new post delivered to your Inbox.

Join 5,582 other followers