This time, things could be different, given the abundant stock market risk, including the financial crisis in the eurozone.
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New York, NY (PRWEB) November 22, 2012
In a recent Investment Contrarians article, editor and financial expert George Leong reports that, so far, November has been horrible for investment gain, with the key stock indices down more than four percent. He notes that the Stock Trader’s Almanac states that investing in the six months from November to May has produced the best returns for stocks versus the June to October period, based on historical records; but according to Leong, the market will need leadership to have any chance of advancing upward.
“This time, things could be different, given the abundant stock market risk, including the financial crisis in the eurozone, a stalling economy in China, tension in the Middle East, and the presidential election and upcoming fiscal cliff in the U.S.,” states the Investment Contrarians expert. He adds rising tensions in Gaza and the realization that corporate America is struggling to this list of risk factors.
Leong points out that the market is moving lower, and it has no clear support. He reports that since its peak of 1,465 in September, the S&P 500 has lost nearly eight percent.
“On average, only about 37% of U.S.-listed stocks are trading above their respective 200-day moving averages (MAs), versus 61% a month ago,” reports Leong. “The short-term weakness is even more prevalent, with about 19% of stocks above their respective 50-day MAs, versus 61% a month ago.”
“What happened to what were supposed to be the best six months of the year for investment gains?” Leong asks.
Leong notes that the market has seen some selling capitulation because of the abundant stock market risk, and lack of any positive news that would encourage investors to buy stocks.
“The reality is that there are numerous uncertainties and a lot of stock market risk out there,” concludes Leong. The Investment Contrarians expert states that a sustained rally in this market is unlikely, though some oversold buying is possible.
To see the full article, and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.