Doug Fabian is the editor of the monthly investment newsletter Successful Investing and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug published the book “Maverick Investing” and has appeared on CNBC, Fox News and CNN. He also has been quoted in the Wall Street Journal, USA Today, Barron’s and other publications.
The financial markets have been relatively calm during the past week or so. Even though stocks in the S&P 500 Index broke out to new highs intraday on Monday, there hasn’t been much real trading volume pushing the market in either direction.
Comments by Yellen indicating she was “surprised” by the weakness in the December employment report, was widely read as “dovish.” Which means the Fed likely will keep its foot on the accelerator until the labor market improves substantively.
If you still harbor doubt that the correction in the equity markets now is underway, then all you have to do is check out a price chart of the Dow Jones Industrial Average. Monday’s steep 300-plus point drop in the Dow sent the most widely watched measure of the equity market plunging below its long-term support at the 200-day moving average.
Past ETF Talks have discussed various individual exchange-traded funds (ETFs), but we have never taken an in-depth look at the specific companies that establish and manage them. What company pioneered the concept of trading a bundle of stocks in the form of a fund, as easily as buying a single stock?
Remember last month when the chatter on Wall Street was dominated by the perma-bulls telling everyone what a great year 2014 was going to be? I certainly remember this talk, but so far in 2014 the bulls have been anything but present.