We all know the expression that a fool and his money are soon parted. But as we observe the irrational actions of energy traders lately, it begs the question: How did these fools and their money get together in the first place?Case in point: The irrational exuberance now bidding up the… Read More

Tonight’s the final presidential debate.Oh. Boy. Like most Americans, I just want this campaign to end. Can we just fast-forward to Election Day and move on?In fact, the more relevant debate for investors is: what to buy now?U.S. stocks, foreign stocks, bonds? Or maybe increase cash, like the pros are doing?In… Read More

Professional investors have more of their portfolios in cash than at any time since 9/11.That’s remarkable—and a hopeful sign for the market in 2017.As we’ve said before, the U.S. stock market is vulnerable to a correction. Valuations are high, interest rates are likely to move higher, and there’s a not-insignificant… Read More

Economically, the energy sector has been in the doldrums for years now.But for investors, it’s been anything but boring.That’s because during the long cyclical downturn, energy prices have been fairly volatile. Check out this price graph for crude oil over the past 20 years.The collapses in 2008 and 2014 stand… Read More

It’s been a tense time for the stock market, which is richly valued and so vulnerable to any sort of bad news.But today, good news arrived to send us into the weekend feeling a bit more relaxed.(I’m not even going to comment on last night’s National(s) tragedy. There’s always next year.)First,… Read More

Over the past three months shares of Best Buy (BBY) gained 25% while the S&P 500 Index declined by nearly 2%. The biggest part of that jump occurred on Aug. 23, the day after Best Buy announced better-than-expected quarterly earnings. And over the past three days it has tacked on… Read More

Big day in my household.First: Game Five tonight in the National League Division Series … Go Nats!Second: Bob Dylan won the Nobel Prize for Literature. Go Bob! (I’m a big fan.)The thing is, Dylan doesn’t care much about awards. In that sense, he reminds me of Warren Buffett, Peter Lynch… Read More

Baseball, football, politics – I understand there are some serious distractions this week.On the financial front, just this afternoon the Fed released minutes of the September Federal Open Market Committee meeting at which three members dissented from the decision not to raise rates. The minutes revealed that “several members” supported… Read More

Alcoa, the aluminum giant, kicked off the third-quarter earnings season this morning by laying an egg: revenue and earnings were lower than expected.A bellwether company for the industrial sector, Alcoa (NYSE: AA) was down about 10% in early afternoon after posting earnings of 32 cents per share, vs. analysts’ consensus… Read More

Good news for the economy today – which could be bad news for stocks.But that could be good news for investors!What do I mean? Let’s dive in.Unemployment claims fell to a surprisingly low 249,000 for the week ended Oct. 1 , below analysts’ forecast of 265,000 and the second-lowest… Read More