Stagflation Becoming Clearer
Economic data has indeed indicated slower growth in recent weeks and months and is a primary driver of increased volatility in the markets. Meanwhile, prices continue to rise (albeit at a lower pace), further indicating stagflation is setting in. Stagflation is indeed the prognosis that we have for the economy and firmly believe stagflation will become abundantly clear to the masses in some fashion very soon. A stagflation environment makes it tough to invest and it definitely warrants defensive Read more [...]
Market Update June 10, 2011
The Dow closed the week under 12,000 for the first time in several months. The markets are down roughly 6.5% since the highs at the start of May. The correction is nice for the stocks we’re looking to buy such as the ones in the dividend portfolio. For example, Walmart is trading under $53, Microsoft is under $24, Raven Industries is under $50, Philip Morris Int’l is under $68. These aren’t screaming buys at current levels, but they are indeed improving and becoming more attractive. While Read more [...]
Market Update June 8th, 2011
The markets have now locked in five straight weeks of declines. This hasn’t happened for several years. While a “correction” is indeed in play, we’re really only looking at a 5-6% decline in the Dow at this point. We welcome this correction, and am looking for it to potentially hit at least 10% in terms of the decline from the peak. I don’t see how we “crash” 30%+ unless there is a major crisis (which isn’t completely out of the question). The volatility is what we predicted in conjunction Read more [...]
Market Update May 20, 2011
The broad markets continue to be somewhat range bound with medium advances in both the higher direction and the lower direction. Big headlines recently include the IPO of the first large social media company in Linked In (LNKD) which was a high flier upon its debut. Additionally, companies like Gap Stores (GPS) reported tough earnings and a weak outlook due to the stagflationary environment which equals lower consumer spending and higher input costs. No surprise here for those of us that have Read more [...]
Long Term S&P 500 Chart
The following chart should make you nervous. The last 15 years of the S&P has been one wild ride, and I hate to say it, but it is likely that the ride isn’t over. Caution + dividends is our approach to investing. Read more [...]