Posts Tagged ‘market pullback’
China Slowdown Will Plague Markets For Years
What a start to the year. CJF’s contrarian prediction of 1,860 on the S&P came to be on January 20th. Subsequently, the market rallied strongly on the hint of more quantitative easing out of the ECB, and the adoption of negative interest rates by the Bank of Japan. Any doubts that 2016 will be a…
Read MoreGlobal Growth Scare + High Valuations = Bear Market Dynamics
It’s been a difficult market since the dog days of summer. After 10-months of exceptionally low volatility, a fierce downdraft set in during mid-August. Lower stock prices, and volatility, will persist, simply because the conditions to go right back to the old dynamic aren’t in place. There isn’t enough global growth to support stock prices…
Read MoreEmerging Market Doldrums
Not out of the woods yet – no way. The world has changed in the past week, and unmistakably, extreme volatility (mostly of the down kind) is back within financial markets. The potential of Fed rate hike cycle, in the not too distant future, is wreaking havoc. An unintended consequences of the extended period of…
Read MoreRisk-reduction driven market corrections are healthy; this one presents opportunities
The pullback in the market should not be a surprise. The real surprise is the extent of the market’s ascent over the past 18-months, without a single significant draw-down. Corrections are normal during the course of a bull market, and aid in accomplishing a number of items: building the wall of worry; an important source…
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