Tag: street authority

This Little-Known Fed Index May Be Signaling Recession

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By: David Sterman Street Authority

Over the past year, economists have noticed an unusual pattern as they digested the series of monthly reports on housing, consumer confidence, purchasing managers, trade flows and other key economic inputs.

These reports showed consistently mixed signals, though it was clear that the U.S. economy was faring OK. And that has led to hopes of more consistently positive reports in the second half of 2013 and into 2014. By next year, many economists have come to expect a firmer backdrop, with GDP perhaps growing in the 2.5% to 3% range.

Yet it may be time to start questioning that brightening outlook. Perhaps the greatest measure of economic activity -- one ignored by most investors, unfortunately -- is flashing yellow and may soon be flashing red.  Continue reading "This Little-Known Fed Index May Be Signaling Recession" →

3 Factors That Could Soon Derail The Bull Market

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This article originally appeared on StreetAuthority

These are truly days of wine and roses for stock market investors.

After being knocked down in the dot-com bubble of the late 1990s and again during the financial crisis of 2008, long-term investors are being rewarded for their persistence and dedication as stocks surge higher, breaking record after record.

In fact, this bull market turned 4 years old in March and is showing no signs of letting up.

Historically, the average bull market has lasted 4 1/2 years. In and of itself, this means little; for instance, the 1990s bull market lasted nearly seven years without a major correction.

But according to my research, there are three distinct signs that make me think this bull market may be ending soon. Here's what you need to know. Continue reading "3 Factors That Could Soon Derail The Bull Market" →

Supercharge Your Portfolio With These Powerful ETFs

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By: David Goodboy - Street Authority

Exchange-traded funds (ETFs) have revolutionized the way investors approach the financial markets.

No longer are multiple accounts required to access the majority of indexes, currencies and commodities. Now, with a stock brokerage account, the self-directed investor can trade nearly every popular financial instrument with the click of a mouse.

Not only has access been democratized, but leverage has also undergone a revolution. ETFs that provide two and even three times leverage -- meaning they amplify the moves of an instrument or index by a given multiple, in either direction -- are available on a variety of financial instruments.

I'll never forget my first time using triple-leveraged ETFs. My technical research and fundamentals clearly indicated that the SP 500 index, the broad barometer of U.S. stocks, was overextended on the upside. A big drop was on its way, and it was going to happen soon. Continue reading "Supercharge Your Portfolio With These Powerful ETFs" →

The Fed's Magic Number May Signal The End Of The Dividend Boom

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This article originally appeared on StreetAuthority

With investors clamoring for dividend stocks, companies have responded by instituting large hikes in their payouts, which has led to the doubly good fortune of rising income streams and rising share prices.

Of course, every major change in the investing landscape must come to an end. Tech stocks were all the rage in the 1990s during the dot-com boom -- until they crashed spectacularly. Housing-related stocks surged in the past decade, culminating in the Great Recession of 2008. And the mania for dividend growth will surely cool eventually (though without the dramatic bang that tech and housing did).

The question for many: When will the dividend era wind down? Continue reading "The Fed's Magic Number May Signal The End Of The Dividend Boom" →

Will Gold Fall Further?

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By: Street Authority

Imagine a bullet fired at the sky.

It climbs higher and higher until gravity overcomes its upward momentum. The bullet begins to fall.

Now, imagine small wings on the bullet that flap while it is falling. The wings are just enough to create a series of slight upswings while on the downward trajectory.

Known as "bear flags," this wavelike cycle recurs until the momentum ends and the bullet drops to the ground. Bear flags are thought to signal additional downward moves to come.

This is exactly what has happened with the price of gold since it hit its high near $1,900 per ounce in August 2011. More recently, this action has been exaggerated, with gold trending downward since striking highs in the $1,800 range back in October. Continue reading "Will Gold Fall Further?" →