For the week of October 28, reading Barrons.

It has been a while since we reviewed the weekly finances. Fear has grown and subsided. The market has fallen and risen to where it is. Negative interest rates and yield inversion and trade much discussed. But it is an under-illuminating merry go-round - you get on where you get off. 

For the week of October 28, reading Barrons.

Bright Future

There is a discussion that the market is starting to sniff out the global growth is likely stabilizing… The feeling arises that the period of fear for the market was over in August.

Muted expectations

But its not a rich investor environment. There is discussion of stock hedging strategies, it's not too helpful for me. In that the solution of some types of options is beyond my understanding – not something that adheres. discussion of stock hedging strategies, it's not too helpful for me. In that the solution is some types of options.

Kingview Asset Management Nolte Notes blog notes that the S&P 3000 level has been a barrier for much of the past few months. This is very true. It declines from that level. It moves back up and they know each time with fewer stocks participating in the rally up. That's what they call the narrowing of a market advance. And it is said here to indicate that the future will be rough. Until unless stocks can rally well above the 3000 level. Maybe they will tomorrow since. Donald Trump had a success in capturing and killing the head of ISIS, which didnt exist anymore.

http://blog.kingsview.com/2019/10/nolte-notes-10-21-19/

Paulson’s Perspective by the Leuthold group discusses yield curves. They feel that bond yields are bottoming out. That fear peaked in August. It's inverted yes, but if it suggests recession, it is far enough out that there are chances for wealth to breed wealth. And that's the news from nowhere.

https://research.leutholdgroup.com/section/paulsen/articles/2019/10/22/a-crescendo-of-fear-and-change-afoot.21883


Storm clouds

Yet there is advice to have a plan in place for downturns. They know it's a bad idea to overreact to corrections that investors are most likely to sell at the bottom. It is better to have a plan for a drawdown in place in advance when you're thinking rationally. And to stick to that plan before fear motivated minds can be upset them. This is the basic theory of behavioral economics psychology that drives much of the chatter around markets. - B.B.