S&P 500 becomes untethered from earnings growth
Yesterday's rally in the Standard & Poor's 500, which pushed the index back over 3,000, sent the forward price to earnings ratio--that is the PE based on projected earnings per share for the stocks in the index--to 23.36. That's the highest level for the forward...
Do you see what I see?
This morning what I saw in photos and videos from this past Memorial Day weekend was a country rushing pell mell toward re-opening the economy without a thought for safety amidst a still uncontrolled coronavirus outbreak. I saw photos of crowds at beaches, on board...
I understand why stocks went up in the face of 20.5 million lost jobs–I just don’t agree
Today the Labor Department reported that the economy lost 20.5 million jobs in April. And yet stocks strongly rallied. The Standard & Poor's 500 closed up 1.69% today, May 8. The Dow Jones Industrial Average was higher by 1.91%. The NASDAQ Composite gained 1.58%....
So this is volatility! Don’t beat yourself up if you don’t get each day right
On Wednesday, I felt really stupid. I don't believe in this rally. I still think we're due for the bear to come roaring back. And I think the bottom in this market is still somewhere ahead. But on Wednesday April 29, I felt completely WRONG. The Standard & Poor's...
Bulls almost pull the S&P 500 even today, but then late selling kicks in
For a while it looked like bullish investors and traders would manage to pull the market even into the close. That would have been quite a positive feat after a huge 3-ay rally and going into a weekend. At 3:27 p.m.New York time today the Standard & Poor's 500 was...Will today’s rally hold though the close?
The Standard & Poor's 500 was up 4.66% at 1:53 p.m. New York time after opening up more than 5%. Since 1:53 level, however, the index has been gradually fading. As of 3 p.m. the gain for the day was down to 3.36%. The bounce this morning was very strong from...
Do January cash flows out of stocks explain February rally?
In the last week of January investors pulled nearly $12.6 billion out of mutual funds and exchange-traded funds that hold U.S. stocks. That extended the longest retreat from U.S. stocks since 2016, according to data released Wednesday, February 5, by the Investment...
Stocks start 2020 in melt-up mood
We've seen this before. And investors and traders seem determined to keep a good thing going--until it doesn't work anymore. Today, January 2, the first trading day in the new year for U.S. markets, stocks were off to the rally races again. The Standard & Poor's...Another analyst capitulates to “fear of being left out”
If this market runs out of bears, I think it's in trouble. And today one of the market's few remaining bears capitulated to the rally. Wells Fargo’s head of equity strategy Christopher Harvey hiked his year-end price target for the Standard & Poor's 500 Index to...
Amazon signals slowdown ahead; Wall Street doesn’t believe it
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
It’s a FOMO market
"Fear of missing out" is driving this stage of the market rally. Fund managers were under allocated to equities at the start of the year and are now playing catch-up with the indexes. And since the consensus is that the Federal Reserve has the market's back, there's...Download Jim’s eBook for Free
