For long-term investors in search of opportunity and value, the downside volatility in October was a welcome change. That it only lasted a couple of days, thanks to St. Louis Fed president James Bullard signaling that quantitative easing remains a tool in the Fed's toolbox, was a disappointment. What does that mean for long-term investors like you? The net result of October's volatility is that we find the markets in about the same place they were last month. Values are starting to emerge in foreign markets, and bubble conditions in the U.S. market remain pervasive.
Although the round trip in equity markets during October didn't create as much opportunity as we would have hoped, it wasn't a total loss. Two areas where opportunities have emerged are in commodities and currencies. Oil and precious metals sold off sharply in October, and neither has recovered. The October volatility has also further depressed some of our favored currencies. In this month's issue, we'll tell you how take advantage of the situation with several buying opportunities. Also, with the snap-back rally in equity markets and the changing landscape in the materials and energy space, as well as tight spreads in the floating rate loan market, we are making a few changes to our master lists. More >>
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 >>
November 21, 2014 In a 400-page report prepared for a Senate hearing on commodities market rigging, Goldman Sachs (aka the Vampire Squid of Wall Street) was again being accused of questionable business practices. According to the Senate report, Wall Street banks may have manipulated commodities markets raising the costs on consumers. Add this to the long list of […] 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 »