Bill Cara

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2019 Market Outlook

We write this 2019 Market Outlook in a very particular market context. U.S. equity averages suffered one of the worst months of December on record, with the S&P 500 down more than -20% from highs. Ostensibly, the Federal Reserve has turned hostile and the global Trade War is far from

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Bear Market Tendencies

The U.S. equity markets are on pace for their worst month since February 2009, at the depths of the Financial Crisis. For those who have argued over the past years that markets are broken, this is just more proof. Very ittle has changed with the economic fundamentals since September. So

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Outperforming Energy Companies

  When equity markets go into correction mode, all news is bad. Brexit, which corresponded with a market low for world equities in 2016, has now become a “reason” for equity selling. The Tories in the U.K. are at war over how to move forward with Brexit. Meanwhile, global growth,

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Three Landmines To Avoid In 2019

In a crazy trading week on equity markets, we saw the Dow Jones swing about 3,000 point between Monday’s opening high, Thursday’s panic low and the Friday high. For readers curious as to what news caused an extreme market movement, the answer will be disappointing: nothing. The Monday opening rally

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EM Bonds. A Haven In Rough Seas?

In a rather busy news week, the two main markets drivers – Fed rate hikes and the Trade War – have been the focus of traders. First, Fed Chair Jerome Powell made a 180-degree change in his policy outlook discourse. Six weeks ago, the Fed was a long way from

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Bonanza Creek

In the holiday-shortened Thanksgiving week, the biggest news item on financial markets was the continuation of the collapse in oil prices. Oil slumped below $60 a barrel in London for the first time in a year after Saudi Arabia signaled its output may have reached a record high and growing

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An example of what can go wrong in managing Other People’s Money

Article taken from: The Investor’s WATCHDOG Catastrophic Loss Event On November 15, 2018, OptionSellers.com notified its investors in an email entitled “Catastrophic Loss Event” that it not only lost all their money, but that they would also owe money to Intl FC Stone for margin calls. According to OptionSellers.com, they

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Look To Diversify Outside U.S.

The financial media cannot find anything better to explain equity market volatility than trade. As such, equity weakness this past week was due to signs that a trade deal with China was looking bleak. But equities rallied on Friday and, by coincidence, Trump tweeted Friday that he is optimistic about

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Tradable Bottom In Oil?

  Mid-term Elections in the U.S. provided a one-day catalyst for equity markets. The S&P 500 jumped over +2% on Wednesday, although the index surrendered half of these gains into Friday’s close. Markets rejoiced in seeing an outcome conform to expectations going in. Democrats took the House while Republicans increased

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Mid-Term Elections & Year-End Rallies

A very eventful week on the financial markets. On Monday, equities indexes likely hit their low point for this phase of the correction, with the S&P 500 bouncing over +6% from the Monday session low. In preparation for the mid-term elections next week, Trump announced that he wants to reach

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