Assessing The Recent Stock Market Damage

Stocks endured another round of eventful trading this week. After reaching new all-time highs to start off the new quarter, stocks entered into a suddenly sharp descent last Friday, and have been moving lower in fits and starts over the several days since. And by the close of trading this Friday, stocks, as measured by the S&P 500 Index, were once again in negative territory for the year. This latest bout of pressure raises the natural questions. Are stocks finally entering a sustained corrective phase? Or is this just another pullback in the ongoing bull market rise?

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.

The Death Of Asset Allocation?

ImageIt has been a marvelous year for stocks. From the beginning of 2013, the U.S. stock market as measured by the S&P 500 Index exploded higher and never looked back. But for those investors that were allocated to anything other than the stock market, the year has taken on a far more sobering complexion. For in the place of stellar gains are scant returns if not outright losses across nearly all other major asset class. This has been a most unpleasant development for investors accustomed to using broad asset class diversification to achieve respectable returns while managing risk.

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

This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Wealth Management (GWM) makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by GWM. There is no guarantee that the goals of the strategies discussed by GWM will be met.

How Much Longer Until Stocks Fall Down?

ImageThe stock market continues to chug along. It showed extraordinary resilience in bouncing back strongly from the sharp sell-off in May and June. And it continues to advance to set fresh new all-time highs on any given trading day. But troubling signs continue to build under the market foundation. The longer these trends persist, the greater the probability that the stock market will finally break to the downside.

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

This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Wealth Management (GWM) makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by GWM. There is no guarantee that the goals of the strategies discussed by GWM will be met.

Another Troubling Sign For Stocks

ImageThe U.S. stock market continues to push along steadily to the upside. Not only are stocks firmly established in a long-term uptrend, but they also appear to have room to continue higher into the near-term. Overall, the performance of the U.S. stock market remains most impressive. Unfortunately, stocks are increasingly traveling this upside path alone, as many other major global markets and asset classes that are highly correlated with stocks have either already ground to a halt if not turned lower beginning as long as two years ago. The longer this disconnect lasts and the more stocks move higher by themselves, the greater the probability that U.S. stocks will finally succumb and fall in line with the rest of the crowd. And one of the latest categories to fall off the upside path is high yield bonds, which is particularly troubling since it is not only among the categories most closely related to U.S. stocks, but it also opens up a tangled web of related issues to consider.

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

This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Wealth Management (GWM) makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by GWM. There is no guarantee that the goals of the strategies discussed by GWM will be met.

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