Tag Archives: sentiment

The psychology of Market Meltdowns

Why would I want panic in markets?  It’s the first step towards recovery (but not the last). A true market meltdown (if this is one) starts with panic – and we’re not there yet. The following is a direct quote … Continue reading

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When Consumer is Happy, Markets are High Risk

Consumer sentiment is usually considered an economic leading indicator.  When confidence is at rock bottom levels, it’s a sign that the economy and stocks markets are heading lower.  This isn’t true.  I’ve published for years that consumer confidence is one … Continue reading

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China? No need for worry in the year of the snake!

It’s the year of the snake, which seems appropriate since everyone is worried about the slowing of the Chinese economy. In previous posts, I’ve described why the economic course of action China has adopted is brilliant – the country’s only … Continue reading

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Correction done? Don’t bet on it!

On March 20th, I published the following quote in my regular money.ca blog entitled: Reacting to headlines is perilous! Most worrisome: Jim Cramer (wait long enough and you’ll eventually be right) is more wound up than a four-year old high … Continue reading

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AAPL Sauce – The downside of upside!

Back in July I published a commentary warning about the perils of following the herd into a much loved stock. The risk is not disimilar to my previous post concerning the current love affair of investors in general with bonds. … Continue reading

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Ready to take on some investment risk? Instead ‘do the opposite!’

For decades I taught younger portfolio managers and trading professionals that the best investment strategy is always to “Do the Opposite.” Virtually every summer this would mean buying while others are selling and bids are few and far between; most … Continue reading

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Consumer – lower confidence is GOOD news!

Consumer confidence is often mistaken as a leading indicator. My experience over many years is that the measure is used at times to rationalize irrational bullishness – when the brain says sell and take some profits, but the urge to splurge is … Continue reading

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Don’t Panic! It’s just 2010 all over again!

Over many years I’ve often been asked to meet with groups (accounting associations or investment advisors with auditoriums full of their clients) in order to help calm them during periods of malaise in financial markets. A tug of war is … Continue reading

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Road to rebound: What goes down must come up?

Through the Valley (New Hampshire) What goes down must come up?  I spend considerable time in my new book explaining that markets always recover.  The cynics argue it’s impossible to get the timing right, so why bother trying. I’ve been … Continue reading

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