Chart of the Week

Stock Market Leverage is at Dangerous Levels.  As the chart below from Advisor Perspective’s Jill MIslinski shows investor negative credit balances in margin accounts these days dwarf the negative balances that preceded  big market declines of  the last ten years.  Why should we worry about that?  Stock drops precipitate margin calls from brokers.  These drops…

We are appreciative to our friends at SentimenTader.com for the following Chart of the Week post:         Stock Market Bulls Trigger a Selling Signal.  It’s not hip to be a mutual fund manager anymore – all the cool kids are rushing into ETFs. Even so, the Rydex family of mutual funds still…

Increasing Risk in Leveraged Loan Market is Worrisome for Economy: Remember 2007.  Jon Harris of Alternative Investment Management, LLC has done a great job explaining the increasing danger in the leveraged loan market. This is evident as once again the bond rating agencies, despite the economic havoc they caused in 2007, are playing loosey goosey…

The Stock Markets’ Record Expansion: When Does the Music Stop? A bull market is usually defined as a period when the stock market keeps going up without a 20% pull back. By that definition, as the chart shows, we are in the longest bull market ever. So when does the music stop? Obviously, no one…

Commodities to Equity Ratio Remains at 50 Year Low: For How Long? That ratio of commodities prices compared to stocks has been at an all-time low for the past few years. However, as the chart shows major unexpected events in the past have triggered a reversal of the commodities to equity ratio.  EquiCapita points out that…