Hey Friends,
I hope you’re doing well and in good health. I’ll let the article (sent to me recently by a very dear friend) and linked herein do the job of giving meaning to the title of today’s post. Please go here to read the article. […]
Hey friends. My book, “Choose Stocks Wisely,” harps on the essential role of the balance sheet in proper risk assessment. Some things are worthy of harping. In my view, the balance sheet is what anchors good investment decisions. It details the nature of the assets you are buying at the time of your decision. […]
Today, permit me to share a very recent interaction I had with a reader of my book, “Choose Stocks Wisely.” I’ve had several good e-mail conversations with this friend over recent years and he posed an interesting observation in our latest interaction. He wrote the following: […]
Happy New Year, friends.
It has not exactly been a friendly start to the new year for stocks.
Across the first 10 trading days of the year, the major indices have done as follows:
Dow Jones Index dropped from 17,425 to 15,988, a decline of over 8.2%
Standard & Poor Index dropped from 2,044 to 1,880, a decline of over 8.0%
The Nasdaq dropped from 5,007 to 4,488, a decline of over almost 10.4%
Yes, it has been a really tough start to 2016 for stockholders. In fact, it is the worst start to a year ever. See this article.
I’ll share a couple of additional interesting articles concerning the backdrop for this market decline. Go here for an article from yesterday that discusses key factors driving market fears, factors including oil, China, the dollar, and credit market and Fed uncertainties.
Go here for an article from January 7, 2016, that discusses how the average stock is already in a bear market (note, this article is before the 2nd difficult down week of January, so indices were actually a good deal higher the morning of Thursday, January 7, when the article was recorded).
I’ve shared in prior blog posts how that a large number of companies failed to participate significantly in the so-called bull market of recent years. The last article highlights this fact. An acronym for four stocks, FANG, stands out today to refer the strong roles Facebook, Amazon, Netflix, and Google have played in recent times in driving the market ahead while at the same time backbone commodity companies working in oil and gas, gold and silver and copper, etc., were literally decimated.
There’s a lot of indiscriminate selling going on of late, probably exacerbated by investors receiving margin calls. There are some […]
Value stocks don’t always get the proper respect in every market season but people often migrate to them when confidence gets shaken enough. If the roller coaster ride of the past week+ is not enough to rattle some market participants, I’m not sure what would do the trick. […]
Let me start this post today by showing a comment received from Hewitt Heiserman following last week’s post on Heiserman’s book, “It’s Earnings That Count.”
“Dear Dr. Allen –
Thank you for the generous review. As you know, I am a big fan of your book, and your investing track record is a testament to the quality of your book’s advice.
If Bill (above) or any other readers want a free copy of a presentation I have given to many groups, “Ben Graham and the Growth Investor,” e-mail me at Hewitt.Heiserman@gmail.com, and I am happy to send you a copy. This presentation has many powerful ideas to improve your analytic skills.
hewitt”
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