The Standard and Poor’s 500 has rallied about 34% from its bear market low of 676.53 reached on March 9.  This can be categorized as a new bull market which is defined as a gain of 20% of more.  Although there are no guarantees that this bull market will hold, this performance is in line [...]

The stock market is an unpredictable beast.  No one can foretell precisely what will happen to stocks in the short-term.  The pendulum tends to overshoot both on the upside as well as on the downside.  But in the long-term, stock performance tends to move towards its historical mean, that is, about a 10% annual return. [...]

The current economic condition is very dismal.  In the near term it is likely that things will get worse – unemployment will rise, businesses will report lower earnings, and more failures and bailouts may be required.  The prospect of the US automotive industry, as an example, is extremely grim.  Bad news will likely continue to [...]

As we navigate through a bear market territory, many people are wondering if it is time to pull out of the market and sell stocks.  The old adage on Wall Street is that market volatility is caused by two opposite human emotions: fear and greed.  In times like today when bad news are all over [...]

Federal Reserve Chairman Ben Bernanke finally took an aggressive step today and lowered key interest rates by ¾ of a point.  This is the biggest interest rate reduction in 23 years in a rare emergency action.  It was also the first time since the effects of September the 11th that the Fed has cut interest [...]