The Last Time This Warren Buffett Indicator Reached This High, A Painful Year-Long Bear Market Followed

The Last Time This Warren Buffett Indicator Reached This High, A Painful Year-Long Bear Market Followed

Warren Buffett’s time-tested stock market valuation indicator reached an all-time high of 200% last week, surpassing a peak of 197% in November 2021. This implies that US stocks may be extremely overvalued. Shortly after the “Buffett Indicator” peaked in November 2021, the stock market entered a bear market. The indicator divides the total market capitalisation … Read more

The S&P 500 Returned an Average of 11% In the Second Half of Election Years with an Incumbent Running for Reelection

The S&P 500 Returned an Average of 11% In the Second Half of Election Years with an Incumbent Running for Reelection

The S&P 500 index, created in 1957, is the top indicator of the overall health of the US stock market. The index tracks the performance of the largest 500 companies that cover 80% of US equities by market cap. The S&P 500 jumped over 18% year-to-date and may climb higher soon. During presidential election years … Read more

How Billionaire Investor Ray Dalio’s ‘All Weather’ Investment Approach Earned Him A Fortune

How Billionaire Investor Ray Dalio’s ‘All Weather’ Investment Approach Earned Him A Fortune

Many Wall Street fund managers know only to play offence, pushing up stock targets even when economic indicators signal otherwise. Many stock analysts recommend the “buy and hold” strategy despite obvious signs of impending market upheavals, such as a recession or high inflation. Convincing clients to “hold” on to their “offence only” assets ensures a … Read more

JPMorgan’s Chief Strategist Reiterates Bearish Outlook, Says The S&P 500 Will Fall 23% By Year-end

JPMorgan’s Chief Strategist Reiterates Bearish Outlook, Says The S&P 500 Will Fall 23% By Year-end

JPMorgan Chase chief global market strategist and co-head of global research, Marko Kolanovic, reportedly said last week in a mid-year outlook that the S&P 500 will drop almost 23% from 5,483 on June 27 to 4,200 by the end of 2024 amid an economic slump and headwinds like downward earnings revisions. US real gross domestic … Read more

Research Firm Says AI-Fueled Stock Market Will Burst by 2026: What Does Bank of America Say?

Research Firm Says AI-Fueled Stock Market Will Burst by 2026: What Does Bank of America Say?

Artificial Intelligence (AI) is not just a buzzword, it’s a game-changer in the stock market. From automating complex and redundant processes to solving long-standing industry challenges, AI is revolutionizing the way we trade. With the launch of ChatGPT and other natural language processing (NLP) chatbots and AI’s use in autonomous driving, the tech is becoming … Read more

S&P 500 hits a record high after two years of high inflation, recession worries

S&P 500 hits a record high after two years of high inflation, recession worries

Wall Street returned to record heights Friday to cap a punishing, two-year round trip dogged by high inflation and worries about a recession that seemed inevitable but hasn’t arrived. The S&P 500, which is the centerpiece of many 401(k) accounts and the main measure that professional investors use to gauge Wall Street’s health, rallied 1.2% … Read more

Why 2024 will be good — and possibly great — for investors

Why 2024 will be good — and possibly great — for investors

Happy New Year! It should be.  After 2023’s 26.6% return, 2024 holds more in store. Fortunately, few are lampshade-on-head gleeful. Most investors remain skeptically timid, fretting about all those “risks” you hear abundantly. As Sir John Templeton legendarily said, “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” Today’s skepticism … Read more

Stocks near record highs as Fed rate cut optimism stokes rally

Stocks near record highs as Fed rate cut optimism stokes rally

Santa Claus has really come to town — or at least Wall Street. US stocks are set to close out the year at record highs as investors make optimistic bets that the Federal Reserve will cut interest rates — but experts say the rally’s longevity into 2024 will depend on whether Fed Chair Jerome Powell … Read more