The Day Ahead: Umm?
When wondering if the rally can continue, ponder these nerdy market stats.Dow Jones Industrial Average price-to-book ratio current: 3.61x Five-year high: 4.13x (February 2010) Dow Jones Industrial Average dividend yield current: 2.55% Five-year low: 2.38% (February 2011) Defensive stocks are in the bottom quartile of performance in the last three months (screams portfolios are now too overweighted in cyclicals, meaning valuations have gotten excessive).
To borrow, but not infringe upon, the words of Jay-Z, "welcome back." I truly hope you were able to take in the abundant amount of rich U.S. history on full display. From Martin Luther King, Jr. Day to the president's inauguration, we, as a country, have come a long way and it's unfortunate that powerful message gets lost amongst concerns on an Apple (AAPL) quarter. Yours truly spent the day doing two things: (1) digging up black and white photos of inaugurations gone by for inspiration and (2) deeply analyzing the market's middle-finger rally, (a perfect description since the rally has unfolded amid a sea of viable negativity). ...382 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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