The Greatest Danger For Stock Investors Today

U.S. stock investors have incredible swagger right now. And why shouldn’t they? After all, no matter what gets thrown at the markets over the last several years, stocks end up falling for a few days, at worst, before making up any lost ground and continuing to rally. Recent events have only served to reinforce this confidence, for despite the threat of a cold war revival from the unfolding situation in Ukraine, stocks continue to move persistently higher. It seems nothing can stop the U.S. stock market juggernaut. Unfortunately, it is within this very notion that the greatest danger for investors resides today.

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

The Four Horsemen Of The Stock Market Apocalypse

Storm clouds continue to accumulate on the stock market horizon. Following an impressive five-year rally that saw stocks not only rebound from its financial crisis lows but also explode to new highs, signs are continuing to emerge that a change may soon be coming. So while the skies remain generally sunny over the U.S. stock market today with the major averages continuing to set new highs amid notably persistent investor bullishness, it may not be long before markets find themselves confronted with the final judgment when the markets are ultimately forced to begin truly working through all of the excesses that were accumulated first leading up to the financial crisis and then even more so in its aftermath. It may be a few months, a couple of years or perhaps even longer before we finally arrive at this inflection point. Then again, it may have just now gotten underway. Only time will tell. But regardless of the timing, as long as the global economy continues to languish, debt continues to accumulate, and geopolitical tensions continue to mount, such a judgment day is coming. Fortunately, for those investors concerned about such an outcome, investment markets provide not only a way to protect against potential losses but also to achieve impressive rewards for those that are best prepared.

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

Key Lessons For The Coming Bear Market

The stock market continues to behave in an orderly way. Following the recent -6% peak to trough correction on the S&P 500 Index, it appears the worst of the pullback may be behind us for now following a sharp upside reversal late last week that has characterized so many bounces in the post crisis period. But just because the market looks like it is once again on the mend does not mean that all is well. Investors were notably rattled during what was otherwise a mild correction over the last few weeks for good reason, as significant structural imbalances continue to fester underneath the global economic surface. And the latest warning shot across the market bow has provided important lessons for what we should expect and how we might position if and when these mounting pressures finally boil over into crisis.

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

The Crisis That Isn’t (Yet)

The stock market has been an utter horror for investors these past few days. In what has been a most unpleasant interruption to the persistently dreamy trading bliss over the last several months, stocks have actually (gasp) gone down over the last several trading days (oh, the humanity!). But while the recent decline of less than -4% has certainly generated its share of desperate media pleas in search of when the worst will finally be over, this so called crisis isn’t even a crisis (at least not yet), as the signs of broader stress to the underlying financial system are mostly lacking at this stage. Instead, the recent decline may simply be a sign that investors are finally looking for opportunities somewhere other than stocks for a change.

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

Perspectives On Friday’s Sell Off

Stocks took it on the chin to close out the trading week. After having already fallen by nearly -1% on Thursday, the stock market accelerated to the downside with another -2.09% decline on Friday. This sudden sharp decline likely has many investors looking for answers as to whether this is simply a benign pullback or the start of something much bigger. Finding the answer to this question lies in the details, and monitoring some key qualitative and quantitative themes can provide useful perspective and guidance if volatility continues into the coming week.

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

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