Markets around the world have generally retreated in response to continuing worries about the eurozone crisis. At the moment, they seem to be settling down, with some areas more stable than others.
Within the past week, several major indices have passed significant psychological levels. The DOW has closed above 13,000, the DAX over 7,000 and the Nikkei 10,000. Britain's FTSE-100 has yet to reach 6,000, though it should soon. Thus, the recovery looks ever more to be on track.
Fractal investing is all about large masses moving slowly and (more or less) predictably. Occasionally an event comes along that apparently upsets our mammoth applecart, so the more giddy among us start panicking and wringing their hands. Should you too be swayed?
The new year has started more or less according to the script I had prepared for it (how considerate), with mild firmness evident but nothing overly thrilling yet. The broad parameters look good, but may take time to realise.
In less than a year, we'll know the outcome of the next presidential and congressional elections. At this point, the outlook is not encouraging. Though at the moment US equity markets look better than some, I am still advising investors to hold their fire (and their money of course).
For far too long the financial world has been plagued with the foolishness of European politicians twisting themselves into all sorts of ungainly postures. Now that they have arrived at a 'comprehensive package' (a package with virtually no content, which may strike some people as odd), the rest of the world can at least get on with its day-to-day business. There are several lessons here for investors, only one of which is to keep avoiding Europe (which I have never recommended anyway).
Recent upsets in worldwide markets are not untypical, especially at this time of year. So don't pay all that much attention. However, is it time to get ready for some real business this autumn?
A reader commented recently that I shouldn't treat lightly such disasters as the Japanese tsunami and the Libyan oil-delivery problems, as they were bound to have an on-going effect. To what extent is this true, and how long should we worry and wait before continuing investing?
Because they have nothing constructive to say, some of the more insipid investment journals occasionally publish the latest Coppock Indicators. The current ones suggest selling Japan, Europe and the USA. Is such information useful or merely for the misguided?
Academic investment 'experts' often promote theories that are far from the real world. For some years, we have seen 'efficient market' and 'random walk' ideas much publicised, useless though they be.
The latest trendy buzzword to waltz down the pike is 'momentum'. Is it any good?