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HomeJeremy Grantham Equity Call: Negative Real Returns Over Next Seven Years
Posted by Larry Doyle on November 20th, 2013 9:20 AM |
A week ago noted investor Ray Dalio projected annual equity returns of a less than robust 4% over the next decade.
Now we hear from another one of my favorite investment gurus, this being Jeremy Grantham. While Grantham believes the current equity ‘party’ has one more leg up over the next year or maybe two, we will then experience the third serious market correction since 1999.
When Grantham talks, I listen. He had plenty to say in his recent quarterly letter.
My personal view is that the Greenspan-Bernanke regime of excessive stimulus, now administered by Yellen, will proceed as usual, and that the path of least resistance, for the market will be up. (more…)
DJIA Chart: Classic ‘Head and Shoulders’
Posted by Larry Doyle on August 11th, 2011 9:01 AM |
Recent market volatility is clearly unnerving.
I believe the volatility is exacerbated by the general decline in broad based participation in the markets over the last few years. Additionally, the growth in derivatives, both within the equity and fixed income markets, has served to accentuate the swings.
I described these swings and the accompanying spike in volatility as the equivalent of an Adult Swim Only a few days ago when I wrote, What Caused the Market Meltdown?.
What are the implications for a market in which there is a lack of broad based participation?
To an ever increasing extent, professional traders study the charts and perform technical analysis to determine likely levels of support and resistance.
On that note, let’s navigate and review a chart of the Dow Jones Industrial Average which takes us back 5 years and provides a fabulous view of the recent cliff dive along our market landscape. (more…)
Where Is The Market Headed?
Posted by Larry Doyle on August 2nd, 2010 9:59 AM |
In commentary written specifically for Sense on Cents, our friends from Forextraders.com share some fabulous insights and perspectives on the ups and downs of the equity markets.
The Stock Market Is In Limbo—Which Way Will It Go?
An incredibly positive corporate earnings season in July has helped the market to discount immediate fears of a possible double dip recession. The strong corporate earnings reports, however, had to battle Ben Bernanke’s very dovish remarks, as he emphasized the slowing recovery in the U.S. and raised the possibility of Federal Reserve instituting further quantitative easing measures. Those bearish remarks by the Fed President regarding the possible future direction of the U.S. economy did cause equity markets to stall in the 3rd week of July, but now in the final week of the month, equity markets are again taking a shot at the HI’s from the month of June. (more…)
