Technical Analysis

Weekend Reading: Oil & Retail Send A Warning

There are two important areas of the market that have historically been good leading indicators of the strength, or weakness, of the markets and the economy... Oil and retail.

7 Myths Of Investing

"There are no sidelines. Those saying this seem to envision a seller of stocks moving her money to cash and awaiting a chance to return. But they always ignore that this seller sold to somebody, who presumably moved a precisely equal amount of cash off the sidelines."

Doug Kass: Not Even The Algo Creators Know What Is Going On

"The machines have no fear of flash crashes or any other kind of crash. Such crashes might even serve their purpose of 'making a profit'... Be forewarned as last Friday's Nasdaq schmeissing may be a walk in the park compared to what may happen in the future...This is not my Grandma Koufax's stock market."

Investing Wisdoms... Spot What's Missing

"Experience is an expensive commodity to acquire, which is why it is always cheaper to learn from the mistakes of others... not one of the investing greats in history ever had "buy and hold" as a rule."

Monetary Metals's picture

There is a often-promoted plan to grow your wealth based on the claim the dollar will collapse:

Phase 1: You gotta buy gold.
Phase 2: Price goes up
Phase 3: Profit!

This is a bit reminiscent of the underpants business model on South Park. South Park of course showed phase 2 as “???” but the analogy holds.

The story switches midway from the-dollar-will-collapse to gold-will-go-up. In fact, these are the same thing. It is important to realize because a higher price of gold does not make you richer. Aside from being wrong as a matter of fact, it is an example of dollar thinking. It comes from the belief that gold is to be sold. That is not historically how people thought about it. Gold is money and those who have it should seek to earn a return on it, not sell it.

FT's John Dizard Warns Of "Catastrophic Decline In Asset Values"

"Short term asset price declines have been reversed by the wall of money coming out of active investment managers and into the accounts of low-cost index products. But this comes at the expense of making the eventual decline in a broad range of asset values not just painful, but catastrophic."

Erdogan Blocks Wikipedia, Bans TV Dating Shows, Purges Another 4,000 Public Officials

Two weeks after winning the Turkish constitutional referendum by a modest but decisive margin, president - or perhaps it is now despot - Erdogan decided to take his newly decreed powers for a spin and overnight in rapid succession surprised foreign observers when Turkey decreed that it would ban TV dating shows, fire an additional 4,000 public officials and also ban Wikipedia.

Investors' Leverage Hits An All-Time High

"...on a quarterly basis, the market is currently more overbought than at just about any other point in history... Combined with record levels of margin debt, the current conditions HAVE NEVER lasted indefinitely. "