Finance and Financial Management Commons^™

Short Term Market Indicators, Steven D. Dolvin

All Chapters

For those interested in technical analysis, some traders are suggesting that the market is set for a pull back. See article and video here, Yahoo.

S&P Breaks Key Tecnical Mark, Steven D. Dolvin

All Chapters

The S&P fell below its 200-day moving average, a key negative technical indicator. Investors should pay close attention to see if this level holds. See article here, yahoo.

Vanguard Vs. The Industry, Steven D. Dolvin

All Chapters

For years, Jack Bogle (the founder of Vanguard) has touted the benefit of passive investing, which is primarily driven by the relatively low fees they charge. Moreover, Bogle has highlighted the inability of active investors to outperform the market. Recent large investor flows into Vanguard products suggests that investors are increasingly agreeing with Bogle. See article here, WSJ.

Do Women Generate Better Returns?, Steven D. Dolvin

All Chapters

Some prior research suggests that women make for better investors, primarily because they generally trade less than men (meaning lower transaction costs). However, a new fund aims to exploit the benefit women may provide as board members. The Barclays Women in Leadership ETN will invest in companies with a female CEO or a board that has a membership of at least 25% women. See here for an article that discusses the new fund (WSJ).

See previous post (ETFs vs. ETNs) for a discussion of the fund structure.

Time To Sell?, Steven D. Dolvin

All Chapters

For technical traders, it may be time to sell. While the market has yet to make a "death cross," some other indicators are saying sell. In particular, a recent WSJ article identified three signals that recently occurred in tandem: overvaluation based on earnings multiples, extreme divergence in sector performance, and excessive levels of bullish enthusiasm. This combination has occurred six times since 1970, with each event resulting in market drops of at least 22%. Will this happen again?

Triple Crown And The Stock Market, Steven D. Dolvin

All Chapters

The "Super Bowl Indicator" is widely known, as the winner of the Super Bowl has been correlated to overall stock market performance. While this does not imply causation, is does make for an interesting discussion of market efficiency. A similar item is the performance of the stock market in years when a horse wins the Triple Crown--the results are not good. So, many people may be watching how California Chrome does in the upcoming Belmont Stakes. See article here, WSJ.

The Benefit Of Financial Advisors, Steven D. Dolvin

All Chapters

Many individual investors believe that the primary role of a financial advisor is to "pick stocks." However, research shows that not only are active managers not able to outperform the market consistently, but that the security selection piece is really not the most important determinant of portfolio return. The key issue is asset allocation. A recent report (see article here, InvestmentNews) suggests that financial advisors can add value, but primarily from activities unrelated to security selection: determining asset allocation, helping clients avoid behavioral errors, facilitating rebalancing, reducing fees, and managing taxes and withdrawals.

Technical Analysis, Steven D. Dolvin

All Chapters

While many investors (particularly those who subscribe to market efficiency) suggest that technical analysis is worthless, market participants still generally track charts, including resistance and support levels, as well as moving averages. With the market recently testing its support and bouncing to higher levels, technical analysts will continue to monitor charts to see if the positive momentum can continue. See article here, Reuters.