Hydrogen Bob

Chart of the Day: Various Stages of a Bear Market

Looking at the 20 year S&P500 chart, it looks like we are just below the "Capitulation" label. Disclosure: I am not a technical analyst

The Dow Adds Kraft

Is the DOW 30 really significant? And for that matter, isn't it a flawed index to begin with? The S&P500 is the true large cap benchmark of the US Markets.

What Effect Will Hyperinflation Have?

Inflation? Yes. Devaluation of Greenback? Hyperinflation: No. The American economy and the American people are much more reslient than that. As the dollar falls, exports will soar and Americans will substitute more domestic products for imports. (BMWs for Chevys). They will also benefit from an improved energy policy that will reduce oil imports and increase domestic production of energy from a variety of sources. The next decade may not be great, but it won't be a disaster.

Perspectives for a Sunday: Market and Sectors

Last week retail investors saw extreme volitility in their portfolios, but if they were well diversified, little change in value. As the gravity of what is unfolding sinks in over this weekend, I can forsee a lot of sell orders come Monday morning. Buyers are few and likely on the sidelines with a wait and see attitude. The downside risk is far greater than the upside risk.

Being Contrarian and Thinking of Buying

In 20 years of investing, the real money I have made is in buying companies with strong long term fundamentals or indexes during panics like this. The reason I keep 35% in bonds in my portfolio is to have the funds to pick up equities in times like these.