By: Meena Krishnamsetty, Insider Monkey

Apple Inc (NASDAQ:AAPL) is the most popular stock among hedge funds and billionaires, and it is performing spectacularly. Despite Apple Inc (NASDAQ:AAPL)’s successful performance hedge funds are underperforming the market third year in a row. The reason is simple. Equity hedge funds usually hedge around 50% of their long exposure. It just doesn’t make sense to compare them to the S&P 500 index which is 100% long. So we came up with a better way of illustrating hedge funds’ true stock picking ability and constructed an index that is 100% long.

walter / Tag: AAPL, GOOG, MSFT, MWSA, QCOM / 0 Comments

Scott MartindaleWith about six weeks to go until the U.S. Presidential election, we enter the critical month of October in which Romney will be using all means necessary to move the swing states like Ohio, Florida, and Colorado from blue to red. The latest polls show Obama leading in these states, but everyone—especially investors—knows that it can all change during this final stretch of debates, campaigning, interviews, and commercials.

smartindale / Tag: ETF, sectors, iShares, VIX, SPY, iyw, IYF, IYH, IYK, IYE, IYJ, IYM, IYC, IYZ, IDU, GS, RNR, GOOG, RAX / 0 Comments
25
Sep
2012

Broken Mirrors

Broken Mirrors
Introduction
Zero Hedge quoted David Rosenberg today, discussing six key influences which have variably weighted effects on the stock market, depending on the period:

ilene / Tag: / 0 Comments

After two consecutive weeks of more than 200 basis points of growth in S&P 500 market prices, resulting from general enthusiasm over the stimulus decisions of the ECB, Fed, and Japanese Central Bank, the market took profits relatively quietly last week. Last week’s economic reports were generally flat.

david / Tag: HCA, VLO, NTES, AFL, LEN, APPL, Germany, ECB, FED / 0 Comments

See David's comments on Spain's bailout request and the expected U.S. GDP number this week in the MarketWatch article titled "U.S. housing data, Spain in spotlight next week."

walter / Tag: / 0 Comments

“Do the difficult things while they are easy and do the great things while they are small. A journey of a thousand miles must begin with a single step.  -- Lao Tzu

Wall Street experienced its first weekly loss for the month of September, though the major indexes continue to hover around the highs for the year. Was the small drop in the Dow and the S&P 500 merely a breather from the rarefied air of QE3, or more of a harbinger of a trend reversal in stocks?

daniel / Tag: DJIA, SPX, Eurozone, Merkel, Draghi, ECB, FED / 0 Comments

Scott MartindalePortfolio managers returning from their summer holidays have apparently liked what they’ve heard from the central banks. Although total volume remains modest, U.S. stock indexes have hit new highs. The S&P 500 finally busted out of its 3-month-long bullish rising channel.

smartindale / Tag: ETF, sectors, iShares, VIX, SPY, iyw, IYH, IYF, IYE, IYK, IYC, IYJ, IYM, IYZ, IDU, AAPL, GOOG, WPI, REGN / 0 Comments

The Fed has enacted QE3 with an indefinite time deadline. Europe continues to make progress after Draghi’s bond buying announcement and Chancellor Merkel’s reaffirmation. The market has noticed and responded with a strong upward movement in each of the past two weeks.  

david / Tag: SSRX, CAB, ASCA, ECPG, VIX, VXX / 0 Comments

“Never permit a dichotomy to rule your life, a dichotomy in which you hate what you do so you can have pleasure in your spare time. Look for a situation in which your work will give you as much happiness as your spare time.” -- Pablo Picasso

Well, Ben Bernanke finally pulled the trigger on QE3, after what must have seemed to be, at least to an impatient Wall Street, an indeterminable period of Hamlet-like waffling and indecision.

But he did it, and he did it with a double-barreled shotgun.

daniel / Tag: DJIA, SPX, NASDAQ, COMP, USO / 0 Comments

Scott MartindaleDespite last Friday’s disappointing jobs report, stocks are staying strong. The S&P 500 hit yet another new high on Wednesday—its highest level since January 2008, while the Nasdaq is at a level not seen since toppling from its “irrational exuberance” days of late-2000 as the Internet bubble was bursting. The ECB seems to be getting a workable plan together to support the eurozone banking system and sovereign debt.

smartindale / Tag: ETF, sectors, iShares, SPY, iyw, IYH, IYK, IYF, IYE, IYM, IYJ, IYZ, IDU, IYC, AAPL, IRF, VRA, TITN, CACI, EW, WPI, CTSH / 0 Comments

[For charts and full newsletter read: Lies, Damn Lies and the Disappearing Middle Class]

Excerpt from MarketShadows September 9 2012

ilene / Tag: / 0 Comments

Last week’s events moved the market in a positive direction.  ECB President Draghi did indeed get approval to implement his sterilized bonds to assist weaker European nations from defaulting on their sovereign debt.

david / Tag: WDC, QCOR, TSO, WPI / 0 Comments

“Experience: that most brutal of teachers. But you learn, my God do you learn.” -- C.S. Lewis

To a certain degree, Wall Street is somewhat in Alice-in-Wonderland territory, where up is frequently down and vice-versa. How else can anyone explain an equity market that is pushing five-year highs even though U.S. growth is virtually stagnant, unemployment numbers are stubbornly stuck at plus 8% levels, and the global economy is, in general, teetering around recessionary levels?

daniel / Tag: DJIA, SPX, BERNANKE, FED, QE3 / 0 Comments

The European Central Bank (ECB) announced a bond-buying plan Thursday that lifted U.S. Markets to levels we haven’t seen since 2007. China followed suit with a post on the National Development and Reform Commission’s (NDRC) website announcing plans to boost infrastructure spending.  Together, these announcements helped investors feel better about global growth. 

Just as the market was feeling like the “sky was the limit,” the US payroll report this morning was so bad that the market reacted like “a rebel without a clue” by continuing higher.   The reason for today’s continued rally “into the great wide open” is predicated on the belief that the Fed will announce some version of QE3 next week. 

sbrown / Tag: LCC, WDC, STX, HUN, RED, ECB, QE3 / 0 Comments

Scott MartindaleVolume remains low as the bulls continue to await Wall Street’s return from late summer vacations...and a firm plan from the central banks. (I think many portfolio managers must be spending their days in the stands at the U.S. Open tennis tournament.) The S&P 500 closed out August with a third straight monthly gain.

smartindale / Tag: ETF, sectors, iShares, iyw, IYH, IYK, IYF, IYE, IYM, IYC, IYZ, IDU, IYJ, SPY, ATHN, MIDD, UA, VMW / 0 Comments

Sabrient's Director and Chief Market Strategist, David Brown, was interviewed this morning on Brian Sullivan's Street Insider segment on CNBC. They discussed Europe's interest rate risk, Draghi's intentions at tomorrow's ECB meeting, and how that will affect investors. Watch the the clip here.

walter / Tag: ECB, bonds, Draghi, interest rate risk / 0 Comments

Our opinion is that current equity prices are reasonable, if not a tad on the cheap side, unless of course none of the above action items turn out positive for investors. The U.S. economy could probably survive without QE3; however, Draghi’s task is of particular concern. The amount of European sovereign debt held by banks could be disastrous if Greece, Spain, and Italy collapse. A decline in the euro would lead to downward EPS revisions in U.S. equities and place them on an overvalued shelf.

david / Tag: GCOM, EPL, MCK, CTB / 0 Comments

“If we listened to our intellect, we'd never have a love affair. We'd never have a friendship. We'd never go into business, because we'd be cynical. Well, that's nonsense. You've got to jump off cliffs all the time and build your wings on the way down.” -- Ray Bradbury

This year’s Jackson Hole performance by Ben Bernanke was just good enough to prop up Wall Street on Friday, with the Dow Jones Industrial Average (DJIA) jumping up 90 points and the S&P 500 Index gaining seven points while defending the psychologically important 1400 level.

daniel / Tag: DJIA, VIX, SPX, ECB, BERNANKE, Eurozone, FED / 0 Comments