The Federal Reserve is pulling the plug on its quantitative easing program at the end of this month. What happens next? Will stocks plunge as they did when the Fed ended QE2, or will continued low interest rates push stock prices ever higher? We have our suspicions, but we can't be certain. What we can be certain of is that this is an aging bull market with valuations at bubble levels that demand you approach the investment landscape with caution.
There are now signs that the relentless and uniform rally in equity markets is coming to an end. That means opportunity for patient investors. We haven't yet reached the point where there is an abundance of bargains, but we do see opportunities for you in high-quality businesses at reasonable prices. First up this month is a leading global brewer. A dominant branded consumer goods company, it has favorable long-term growth prospects and a juicy dividend yield, and it is available today at a fair price. Also this month, recent market volatility has created opportunities for tax loss harvesting. We'll tell you which ones you can take advantage of now. Finally, it is time to close your short position in the Japanese yen that we advised back in June. More >>
I have some good news and some bad news to share with you. The good news is the Federal Reserve is finally winding down its misguided money-printing campaign. The bad news is that just as Yellen & Co. are winding down their bond buying program, the European Central Bank (ECB) is signaling a willingness to start a quantitative easing program of its own. Global monetary stimulus just won't go away.
In this issue, I'll explain the investment implications of a stagnating euro area with the ECB ramping up stimulus and a faster growing U.S. economy, but a less aggressive Fed. With bubble valuations sill prevalent in the U.S. stock market, more reasonable valuations in Europe, and an improving competitive position for European exporters, European-based multinationals make a lot of sense here. You can find our top five picks for new money in the issue. Also this month, shares of the coal producer we added to our Master List in June have sold off. It's time to take your position from 1/3 to 2/3. More >>
October 29, 2014 My Favorite chart for the month of October comes courtesy of Zerohedge. Zerohedge points out the schizophrenic policy views of St. Louis Fed President James Bullard. Bullard is sometimes a policy hawk and other times a dove, but mostly he is just consistently inconsistent. Just days before the market corrected, Bullard was out boasting about […] More »
The Young Research Commodities chart book includes price, both real and nominal, for different time periods and annual rates of change for the commodities covered on the Global Investment Scorecard.
The Young Research Equities chart book includes a range of charts featuring indicators on stock market valuation, sentiment, relative strength, etc. for U.S. stocks over a variety of timescales.
The Young Research U.S. Economy chart book includes short and long-term charts on output and activity, the labor market, inflation, and consumer and business sentiment.
Since 1896, the average bull market has lasted 835 days and resulted in a doubling of stock prices. For more historical perspective on the duration and magnitude of bull and bear markets, check out our new Dow Bull and Bear Markets table.
Our Credit Markets chart book includes many of the charts we monitor and use regularly to formulate fixed-income investment strategy. The chart book includes long-term charts on nominal and inflation-adjusted treasury rates, policy rates, interest rate valuation indicators, and credit spreads.
Jeremy Jones, CFA, is the director of research for Young Research & Publishing and editor of the Global Investment Strategy newsletter. Jeremy is also the Chief Investment Officer at Richard C. Young & Co., Ltd., an investment advisor to high net-worth families and businesses. More »