Tag Archive for Stock Market

Why this Ivy League Professor Sees Dow Hitting 18,000 – Money Morning

The bears predicting a stock market crash have it all wrong.

So says Jeremy Siegel, finance professor at the University of Pennsylvania’s Wharton School and author of “Stocks for the Long Run.” He predicts the Dow – which closed yesterday (Wednesday) at a new record high 14,455.28 – will continue the bull market run, ending this year in the 16,000 to 17,000 range.

For 2014, he says, the “best bet goal” is the Dow will climb to 18,000.

And the well-known bull has nearly 150 years of data to back up his bold prediction.

Here’s why Siegel is so bullish.  

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What Bankrupt Athletes Wish They Knew About Financial Windfalls- Money Morning

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. Few among us haven’t dreamed of sudden riches – the financial windfall of a big legal settlement, an unexpected inheritance, a winning lottery ticket, or, for the young and athletically gifted, a lucrative contract with a major professional…

Does the Heinz Deal Mean Warren Buffett Has Become a Doomsday Prepper? Martin Hutchinson- Money Morning

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. At first sight, Warren Buffett’s deal with the Brazilian-led private equity firm 3G Capital to purchase H.J. Heinz Company (NYSE:HNZ) looks strange. At $28 billion the famed ketchup maker is valued at a rich 23 times earnings, and…

As Insiders Head For the Exits, Do They Know Something “We’ Don’t Know?- Keith Fitz-Gerald, Money Morning

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. Whenever the markets begin to look toppy like they do now, I turn to short-term indicators to help me figure out “what’s next” for the markets. It complements the fundamental analysis I rely on for the big picture.…

Stock Market Today: Will the Dow Keep Going Above 14,000? – Money Morning

The stock market today (Friday) hit a high not seen in more than five years when the Dow Jones Industrial Average crossed 14,000 for the first time since October 2007.

Less than an hour into trading the Dow spiked 140 points, or 1%, to hit 14,000.97. In mid-afternoon trading, the Dow rallied further, tacking on 150 points. The move leaves the Dow around 200 points, or 2%, from its all-time high of 14,198.10.

Friday’s strong showing came on the heels of the Dow’s strongest January (up 5.8%) since 1994.

The Standard & Poor’s 500 Index, which logged its best January since 1997, added 15 points, or just shy of 1%. The Nasdaq advanced 40.

The robust rally followed a lackluster report on the job market which gave “strength to the argument that the Fed will continue its bond buying program and keep rates low, which is also a positive for the stock market,” Tom Schrader, managing director at Stifel Nicolaus told CNN Money.

That sentiment also gave bonds and precious metals a boost. Gold prices moved up $7 to $1,670. Silver added 37 cents to $31.94

A bevy of reports helped buoy markets Friday.

A Census Bureau report showed construction rose 0.9% in December, well above forecasts. The Institute for Supply Management’s monthly manufacturing index rose to 53.1 in January, ahead of the expected 50.5 read, and the University of Michigan’s sentiment index climbed to 73.8 last month, better than the expected 71.4.

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Is the Obama Stock Market Rally the Real Deal? Money Morning

At first glance, there can be no doubt that U.S. President Barack Obama has been good for the stock market.

The Standard & Poor’s 500 Index has rallied by nearly 700 points – just shy of 86% – since the president’s first Inauguration on Jan. 20, 2009.

This is the best stock market performance for a presidential first term since World War II, even beating the 79.2% rally during President Bill Clinton’s first term in the White House, from January 1993 to January 1997.

In fact, the only time stocks rallied more during a presidential first term was during Franklin Roosevelt’s first term from March 4, 1933, to Jan. 20, 1937, when the Dow Jones Industrial Average rose 245% off of Depression-era lows.

In a very broad sense, the condition of the stock market at the start of President Obama’s first term in 2009 can be compared to the stock market in 1933. In both cases, stock prices had collapsed and were trading at generational lows when both presidents took office. In both cases, share prices rallied substantially off of the bottom as economic conditions improved.

But all this really proves is that the first leg of any rally is usually the strongest and most profitable.

As the S&P 500 is at a five-year high and is zeroing in on the 1,500 level for the third time in its history, one has to wonder if the Obama Rally is sustainable or are we just reverting to the mean?

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