The title of this piece is “The Gold Star and the Falling Knife.” So I guess I’d better pay that off. The Gold Star is a reference to the energetic rebound in the price of gold that’s been lifting mining stocks for the past couple of weeks. This is mostly a defensive move by investors who are looking some something that will hold value in a chaotic market environment. And after a nearly four-year pullback in gold prices, even those who aren’t fans of precious metals (like me) are getting a little gold gleam in their eyes.
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Stocks and Investing
The stock market losses continue to pile up, and it's discouraging for any investor. But there are positive signs if you look closely enough.
This stock market collapse has lasted longer than some thought, leading the mainstream media to scramble for an explanation. The real reasons for the extended downturn are simpler than you think.
After bottoming in the fall, the best solar stocks are starting to make their move. Here are two to add to your long-term portfolio.
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The window of opportunity to buy great companies at great prices often comes during market corrections such as this.
While this retest (if it holds) would be a good sign, it’s unlikely that a three-week bottoming process would be enough given all the damage.
The Cabot Emerging Markets Timer, which looked last week like it might climb back on top of its moving averages, has now fallen back again.
One quick way to find companies that don’t buy back excessive numbers of shares is to identify companies with increasing sales.
The fact that the broad market failed to recover even half of January’s losses before losing momentum again isn’t a great sign for a recovery.
For the bears, Friday’s price action was nearly ideal, as former market leaders such as Facebook, Google and Microsoft, which had recently handily beat earnings expectations, were crushed.