Showing posts with label 2012 stock market. Show all posts
Showing posts with label 2012 stock market. Show all posts

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make money trading stocksThank you for your patience as I continue to try to find time to give updates on the site. Thanks to everyone who has reached out to make sure I am still alive, haha! All is well, and hopefully I get the opportunity to converse with many of you.

As for an update, I am pursing my MBA and am enjoying the opportunity to dig even deeper into financial markets and strategies. I have been lucky to work closely with faculty and staff who have extensive experience in portfolio trading and a long resume in market studies. It has been very interesting digging into market efficiency and really looking at the data and concluding if abnormal gains in investing can be accomplished and repeated and how... The results are very interesting. I will be sharing a variety of strategies and portfolio theory that we find and study with all of you as well as implementing these strategies in my account and sharing them with you.

Markets have continued to act unique this past year as it has since 2008. However, we are still finding many existing and new strategies are finding a lot of success in current trading environments. There are a variety of new portfolio strategies in today's market that allow for diversifying against non-systematic risk in portfolios. We are also seeing momentum trumping several past fundamental valuation methods.

The past two years, we have seen just exactly why fallen Angels small cap stocks are the optimal choice for portfolios rather than value growth stocks. Rebounds in companies such as Las Vegas Sands, Citi, and Wynn show just how profitable being 0n the right side of these rebounds can be.

I am excited to reignite some passion with the readers of this site... I look forward to some great gains and strategies for this year and hopefully we can share in the success that the markets are sure to bring this year. Happy Trading!

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Bulls and Bears Stand Divided

bulls vs bearsRepublicans and Democrats are not the only people drawing lines in the sand and not wanting to budge. We are seeing a pretty divided stance on the near term movement of markets. I have been to several economic forecast meetings in which very highly respected economists discuss their near term outlook of the economy and it surprises me that I have heard many different stories from all of them.

This perfectly explains the volatility of the markets. In fact, some people change their minds day to day. Whatever it may be, their currently exists major differences of opinions among highly regarded economists and corporate CEOs.

For some, the debt crisis in Europe, combined with the monumental debt piling up in the US is only delaying the inevitable. That being another dip in markets. For others, record low interest rates, strong earnings among manufacturers, and more liquid banks is priming the market for more of a rebound. The one thing that most will agree, is even if we do trend upwards, that will be a very slow growth.

I am encouraged with recent earnings from manufacturers, however am discouraged with many of their "restructuring" plans for 2012. With the latest earning reports, many US manufacturing companies released a restructuring plan for 2012 in which they will be looking to scale down operations as well as cut certain jobs. All seem to have the same answer when asked why. Because they are unsure of near term outlook. They would better be prepared than be caught by surprise.

What worries me most is how sluggish the current economy is, while enjoying record low interest rates. In fact, without such interest rates, I believe it is safe to say we would be head deep in a depression as of now. They are the lifeline that has kept us a float, barely. However, this cannot last forever. How long will the government extend this benefit while stockpiles of debt continue to grow? That of course, will be the big question as we go into 2012. The government has made it clear by both words and actions they will take ANY action necessary to keep markets flowing. Whether or not that will come back to haunt us is a big subject of debate.

At any rate, I see commodities finishing strong to end the year. As risk and uncertainty continues to rise, commodities will go stronger. I see a lot of opportunity in some of the emerging market sectors, but I will go into much more detail about that in a later post. Happy Trading.

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