Improving housing metrics / values = improving wealth effect

| January 27, 2013

The following chart was created by the Chief Global Equitis Strategist at Jefferies, Sean Darby (reprinted courtesy of Business Insider).  I like his comment.  “A virtuous circle in U.S. housing has commenced.”  Home values are rising and the willingness and ability of the public to buy is improving.  To be sure, rising home prices may pull […]




Indeed – investors can be rational. As fear descends, greed ascends . . . “2013 will be a “game changer” as investors reallocate money” – Ray Dalio at Davos

| January 27, 2013

The business press was full of “rotational” comments this weekend.  More people are getting on board with the notion that the huge quantities of cash now flowing into equity mutual funds may be just the beginning of the mother of all reallocations of capital out of bonds and into higher ROI assets – including equities […]




Stocks are up, Street consensus equity allocation remains near historic low

| January 19, 2013

The following was posted by AllStarCharts . . . “Bank of America Merrill Lynch has a Sell Side Indicator that measures Wall Street’s consensus equity allocation. Their model closed out the year at 47.0, which is still near a historic low. This is telling us that although equities keep melting up, bearishness on equities remains at extremes […]




Forrester says Mobile Commerce to Quadruple to $31 Billion in Next 5 Years

| January 19, 2013

A recent reporting about Forrester’s outlook for mCommerce stated . . . “Sales of physical retail goods and services made on smartphones were $8 billion in the U.S. last year, accounting for 3% of online sales and less than 1% of total retail sales. . . . Over the next five years, total mobile sales are expected […]




Huge inflows to equity mutual funds last week

| January 12, 2013

“Cash floods into stock Funds” – WSJ Jan. 11 “Money Pours Back in Stocks: ‘Have to Take This as Bullish’” – CNBC “Stock Funds’ Huge Week: $18B Inflow Is Fourth Highest On Record” – Barron’s The headlines are revealing.  Depending on which article you read, last week saw either the 2nd biggest equity fund inflows […]




Three market milestones with positive historical implications for 2013.

| January 6, 2013

There are three current market milestones with bullish implications for stock prices.  The first is the fact that we saw two consecutive days (Monday, the last trading day of 2012, and Wednesday, the 1st trading day of 2013) where 90% of the trading volume in the S&P 500 stocks was up volume.  This is rare.  […]




More jobs – not up a lot – just up and rising by a steady rate

| January 6, 2013

The jobs report was up generally in line with expectations.  This matters because it dispels concerns that “fiscal cliff” and the looming “Obamacare” effective date would depress hiring late in 2012.  It may support a case for improved earnings results over cautious Street expectations.  There is no mistaking the slope of the curve – not […]




Consumers feeling the best in years. Best since before the Great Recession.

| January 6, 2013

Two recent polls by Rasmussen Reports show a very strong recovery in consumer sentiment and in how confident Americans feel about employment prospects.  Both are the strongest since before the Great Recession.  Both exhibit multi-month improvements which was consistent with strong stock market gains in the past, notably spring of 2009 and the fall of […]