Articles for: INDU

What an admission! I really don’t know where the markets are going in the medium-term.

We saw a strong change in sentiment for the last week of June, as markets wound up their worst quarter since the Global Financial crisis.

Despite a lot of rhetoric over the so called ‘September effect’ most major markets around the world ended last month at or just below 12 month highs.

Moving averages (MAs) are often the first technical indicator learnt when studying technical analysis, and why not they are straight forward and help gauge where a market is in relation to its history.

A lot of comparisons have been made between the current Global Financial Crisis and the great depression, and indeed there are many similarities. Unfortunately though, such comparisons seem to provide little scope for optimism, especially for the longer term investor.

Over this period of bear market action I have been continually dismayed by statistics used in the mainstream media. Statements like "...the Dow had its largest one day decline in history" may sound fair enough, but when we are talking about absolute changes in price they are really quite useless.

A few months ago I wrote about how the USA was in decline and China was fast catching up - and so I thought that it was time to relook at these economic power machines. Not that a lot can change in a few months that will influence the outcome in decades to come.

As the new week unfolds in Australia off the back off the 3rd largest "up" week in the Dow Jones history the cynic in me always has to think this is the next part of the dead cat bounce or the real deal.

Sorry to be back to the dour side of investing life.

Back in 2007 I wrote an article entitled "Putting on the Bear Hat"