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@theMarket: Markets Need to Digest Recent Gains
By Bill Schmick,
07:50AM / Saturday, July 23, 2016

Greed and fear make the world go round. While Donald Trump attempted to tap into the latter emotion in his acceptance speech this week, investors were mesmerized by the opposite emotion, at least where the stock market is concerned.

It is true that the markets, like the humans that trade them, tend to vacillate between these emotions when gains and losses begin to nudge the extremes. Of course, we would all like the markets to just continue to climb, but a line I read recently sums it up well.

"Keep in mind that betting on never-ending capital gains is the very definition of a Ponzi scheme."

The best thing that could happen to the stock market in the short-term

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@theMarket: Markets Make Hay
By Bill Schmick,
11:27AM / Saturday, July 16, 2016

A series of new historical highs rewarded investors who remained patient this year and remained invested. Unless something changes in the world of central banking, there is a good chance that further gains are in store for the stock market.

There will be pullbacks from time to time as the markets digest their gains. We have enjoyed several back-to-back gains in the stock market. The S&P 500 Index, for example, has climbed over 100 points without one down day. That is not something that can continue unabated.

The key to all this upside momentum is, of course, the worldwide largesse of governments and central banks. Take, for example, the events in England this week. Although

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@theMarket: Historical Low-Interest Rates Prop Up Equities
By Bill Schmick,
09:26AM / Sunday, July 10, 2016

There was a time when soaring bond prices and correspondingly lower interest rates were a bad sign for the stock market and the economy. Thanks to worldwide central banks, that correlation no longer exists, or does it?

Current wisdom on Wall Street will tell you that interest rates are at historical lows because investors are hunting for yield. And it just so happens that the U.S. bond market still offers the highest return on your money. That's not hard to understand if you realize that most developed nations' treasury bonds are yielding far less than ours thanks to central bank manipulation.

Gold, on the other hand, continues to rise, racking up a 30 percent gain so

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@theMarket: Fourth of July Started Early for Markets
By Bill Schmick,
04:11PM / Saturday, July 02, 2016

It wasn't supposed to happen. After the British surprise vote to exit the European Union caught global investors leaning the wrong way last week, most traders expected a blood bath.

Instead, after a two-day 5 percent sell-off, markets have regained almost 90 percent of that loss in the last few days. So how could the "smart money" get it so wrong twice in one week?

Readers may recall that traders had at first bid the stock market higher in anticipation that the UK would remain in the EU. When that didn't happen, traders flipped the other way by selling and shorting. Most of the world markets were down by 5 percent or more between last Friday and

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@theMarket: It's Still a Coin Toss
By Bill Schmick,
06:11PM / Saturday, June 18, 2016

Despite all the algorithmic programs, high-powered computers, enormous capital and worldwide connections, what happens in the investment world sometimes comes down to a coin toss. The British vote next Thursday to stay or exit the European Community is shaping up to be one of those binary events.

Have you noticed that there are more and more of these kinds of events in the world?

Remember the U.S. government shutdown, the Greek Referendum, the TARP vote, the German bailout votes for Greece, the vote on Spanish austerity? These are just some of the either/or occasions that sent global markets up or down in double-digit moves.

If you listen to some of the big brokers, they

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