Stocks are trading at all-time highs, thanks in large part to the low interest rate environment, overly generous monetary stimulus, and investor euphoria about expected strong post-pandemic economic growth. But a large number of economic indicators show that stocks are seriously over-valued, and, according to some on Wall Street, stocks could crash as much as […]
Category Archives: Blog
08
Jun
Jun
Because of COVID-19, the state of the global economy, and ongoing uncertainty about just how long the pandemic could last, gold prices experienced significant growth in 2020. From January to early July 2020, gold prices soared 37.5% and were trading at their highest levels ever. Gold rallied again this past May; while strong U.S. economic […]
In this month’s market review, our Chief Options Specialist, Jason Ayres, reflects on the May market conditions. Now that we are halfway through the year, let’s look back at a few events that shaped the market Biden won the election and inventors believed that administration would do what it takes to help the economic recovery. […]
03
Jun
Jun
The Canadian dollar continues to be the most bullish currency among all G10 countries. The month of May marked the fourth straight monthly win for the loonie against the U.S. dollar. The Canadian dollar has gained approximately 1.8% since the start of the month and has rallied 6.0% since the start of February. How Is […]
31
May
May
According to every major indicator, the stock market is seriously overvalued. And the stock market bubble is getting bigger. Unfortunately, it never ends well. Over the last 120 years, we’ve never seen a stock market bubble deflate slowly or get resolved because the stock market has moved sideways. Stock market bubbles pop. What makes a […]
18
May
May
Stock market valuations have been a big concern to investors. And for good reason. Well regarded stock market valuation indicators like the total market capitalization-to-GDP (also known as the Warren Buffett indicator), the Case Shiller P/E, and price-to-sales ratios are all at historically astronomical heights. This has led a number of analysts to predict the […]
11
May
May
Company insiders on Wall Street are selling their stocks. While it’s certainly not uncommon for executives to sell their stocks, the timing should make retail investors sit up and take notice. With the major indices at record levels, the S&P 500 already up more than 11% in 2021, and valuations in nose-bleed territory, it makes […]
04
May
May
The major stock indices have experienced huge gains since the COVID-19-fueled sell-off sent stocks crashing in February and March 2020. With coronavirus vaccines rolling out and encouraging economic data rolling in, many see the recent stock market gains as signs of a new bull market. But what if the stock market recovery is simply a […]
27
Apr
Apr
Pot stocks have been in the spotlight recently as investors become increasingly optimistic that cannabis will become legal on the federal level in the U.S. In fact, the broader marijuana industry has been trending higher over the last 12 months, with the Horizons Marijuana Life Sciences ETF (OTCBB:HMLSF) up 110% year-over-year. Over the same period, […]
23
Apr
Apr
As of this writing, the Dow Jones Industrial Average and S&P 500 are both trading at record levels. The NASDAQ and TSX meanwhile are just two percent below their recent record highs. Stocks at record levels is a good thing, it suggests the broader economy is doing well and investors are optimistic. Except in this […]
