Because the market moves down in corrections much faster than it rises in rallies downside positioning in corrections can produce profits much faster than buying for rallies.
Has the economy peaked in its recovery for now? Has the stock market begun a significant correction to factor in a slower economy, or even a dip back into recession later this year?
Will the stock market survive the numerous negatives dumped on it this week.
After holding on all the way down in the bear market, many investors have been moving money from stocks to bonds dramatically for the past year, “swearing off the damned market for good”, even as the new bull market in stocks has been underway. That has usually been a big mistake in past cycles. Will they be right this time?
The disappointing employment report for December was disappointing only because hopes had been cranked to high after November’s surprisingly positive report. It does not indicate the economic recovery has faltered.
Important historical patterns point to another market decline next year, but to an important multi-year low.
The market’s long-term seasonality remains intact in spite of not showing up this year.
The U.S. dollar has been rallying for five weeks but is at an important juncture
A well-known gold-timer provides a downside target for gold’s decline of the past week.
The stimulus efforts seem to be working faster than expected.
Treasury bonds ended 2008 in a bubble. I believe that bubble will burst in 2009, bringing shock to investors who rushed into treasuries in December at a record pace seeking perceived safety.
The Fed raised its U.S. inflation forecast for 2008. But the U.S. may be fortunate compared to much of the world, where inflation is much higher, and where a wage-price inflation spiral may be developing.
Teh bear market will last for another year or two, one of the more serious bears. The good news is that the bear market rallies should be more substantial and worth going after.
Investor sentiment is an important tool in market-timing, often indicating an approaching reversal in the market’s direction. It is also known as a ‘contrary indicator’. Sentiment is the clearest indication of why most investors fail to keep the gains they make in bull markets. It has them buying more heavily at market tops and selling in despair near market bottoms.
The recession of 1974-75 was the worst since the 1930’s Great Depression. The 1973-74 bear market in anticipation of that recession was the worst bear market since that of the 1929-32 bear market (which led to the Great Depression). The mid-1970’s were indeed a miserable period. So how can it be good news that the prospects for the current recession, and the current bear market, resemble those of that period?
Top-Ten market-timer suggests a stock for income and potential capital gains.
What are the alternatives for investors if a bear market has begun?
The easy money has been made betting against the U.S. dollar. Here’s why the current popular advice to “Sell the dollar, buy the Euro” may be way too late, with an upside reversal in the dollar much more likely.
Wall Street likes to suggest that investors can readily handle a bear market by simply selecting the right stocks or sectors, the ‘defensive’ stocks. That has never worked in the past, and did not in this bear market.
Investor sentiment is pointing to a stock market correction.
Efforts to reform Wall Street are bogged down amid infighting between regulators and anger by Wall Street firms, and once again nothing is going to happen to protect investors from a repeat of the periodic abuse.
The Fed’s decision on when and how to remove the massive stimulus actions it took to salvage the economy will be as important to the economy as were the rescue efforts, and just as difficult to execute with the desired results.
The most seriously intended complaints regarding the costly government bailout and stimulus efforts are that ordinary tax-payers, the little guys, are bailing out the wealthy bankers. So the wealthy and their big financial institutions will survive, while as a result of their greed, the economy will suffer a bad recession and the little guy is not only stuck with paying the bill for the rescue efforts, but may well lose his house or his job, or both.
Wall Street says the market can't be timed, but its own actions, by buying low and selling high, say it can. However, there's no profit for Wall Street firms, only problems, if they tell investors when to sell. So you have to make that decision for yourself
Since 1940 there have been only four negative election years. But this election year has been very different in many ways, not just related to the stock market. That may be a bad omen.
The price of oil has soared another 40% just since the beginning of the year. With global economies slowing that price rise is due to a sudden 40% increase in demand? Or a 40% decrease in supply? Or are speculators to blame for the bubble?
All year I've been predicting the market would not see its low for the year until "the Octover/November timeframe." It's time to look ahead to the rest of 2008 and into 2009.
Important information for investors regarding the improved methods they can use in managing their investment portfolios.
Retirement plans run by employers usually provide very narrow investment options, and arbitrarily lock investors in or out of the market when they don’t want to be, by limiting how often investors can make changes in their holdings.
There are compelling reasons to expect a market correction has begun!

