VectorVest

1-888-658-7638 M-F 8am-12am; Sat 10am-6pm
VectorVest FacebookVectorVest TwitterVectorVest Google PlusVectorVest RSSVectorVest WordpressVectorVest YouTube

The Bear Market Early Warning System

The Efficient Market Theory states that it is impossible to “beat the market” because share prices always incorporate and reflect all relevant information as soon as it becomes available. Implicit in this theory is the condition that all market participants receive and act on all relevant information at the same time. Of course, this notion is silly and is not true.

Bear Market Already?

The current bull market celebrated its fifth birthday earlier this week and brings up the question as to how long it will last. In order to answer this question, we would need to know when the next bear market begins. VectorVest did it in 2007. Can we do it again?

A bear market is defined as a 20% drop in a major index, e.g., DJIA or SPX, which lasts at least two months. The last bear market began on October 10, 2007 when the DJIA and SPX closed at bull market highs. The Price of VectorVest’s Market Index Composite closed at an all-time high of $31.44 on July 13, 2007; then it hit an intraday high of $31.84 on October 11, 2007. VectorVest issued a Confirmed Down (C/Dn) signal on November 1, 2007 and I wrote an essay on Contra ETFs on November 2, 2007.

Market in Review Week Ending 3-8-14

Stock prices got punished in the first session of the week as tensions between Russia and Ukraine escalated. The Dow faltered by 0.9%, while both the S&P 500 and the Nasdaq lost 0.7%.

Geopolitical unrest dissipated Tuesday after Russia pulled troops back from the Ukrainian border and investors celebrated by going on a buying spree sending the Major Indexes into record territory.

Are P/E Ratios Leading You Away from Your Biggest Winners?

Everyone wants a bargain, but some bargains can cost you. In fact, they can hoover away thousands of dollars in lost profits and years of your time… time spent waiting… and waiting… and waiting some more for these bargain stocks to finally realize their potential. Oh, and did I mention, that’s only IF they realize their potential, which is by no means guaranteed.

Dr. Bart DiLiddo, founder of VectorVest, writes about his own problems with P/E ratios and what he did to solve them.

Market in Review 02-28-14

The Major Indices began the week with a bang as investors cheered merger & acquisition activity and a better-than-expected German Business Climate report. The Dow ended the day 0.6% higher, the S&P 500 also closed 0.6% in the black, just shy of its January 15th record close and the Nasdaq ended 0.7% higher, a 13-and-a-half-year high.

Economic Report Summary 02-28-14

GDP grew at an annual rate of 2.4% in the fourth quarter of 2013, slightly lower than estimated growth of 2.5%. Durable Goods Orders fell 1.0% on a monthly basis in January, whereas consensus pointed to a steeper drop of 1.5%. Ex-transportation, Durable Goods Orders rose 1.1% month-over-month in January, beating forecasts which pointed to a 0.3% decline.