What the Last Week’s Calmness Means for the Market

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

The financial markets have been relatively calm during the past week or so. Even though stocks in the S&P 500 Index broke out to new highs intraday on Monday, there hasn’t been much real trading volume pushing the market in either direction.

Advertisement.

So far in 2014, the broad-based measure of large-cap domestic stocks is just slightly in the green. Even after the big down month in January, and the subsequent rebound in February, we are right about where we were at the beginning of the year.

I’m actually welcoming the calm here in stocks, as I think the pendulum swung a bit too much in both directions so far this year. Of course, we are liable to see many more big swings in the markets this year, especially if the economic data continues to come in mixed. We are going to get several data reports next week, including the all-important jobs report next Friday, so until then I expect the calm mood to continue.

SPX_022614

Advertisement.

Things have been anything but calm in the commodities space, where a big move higher has taken place this year. The chart here of the DB Commodities Tracking Index Fund (DBC) shows the big spike higher since the beginning of February.

DBC_022614

This secular trend higher in commodities is something we’ve been taking advantage of in our Successful Investing advisory service. If you’d like to take advantage of this trend, and other profitable trends just like it, then I invite you to check it out right now.

Advertisement.

Still Mad at the Banks

It has been more than five years since the 2008 financial crisis and the bailout of some of the biggest Wall Street banks, but that situation doesn’t mean Americans still aren’t mad as hell about it.

According to a recent survey titled the Consumer Banking Insights Study, nearly eight in 10 Americans (78%) still think that big banks are to blame for the financial crisis. Moreover, the survey revealed that two-thirds of respondents were still angry at the big banks for the crisis. And in another interesting finding, nearly half of Americans (49%) said that it was important to do business with local banks.

The study, conducted online by Harris Poll in December 2013, included more than 1,000 U.S. adults and was commissioned by more than 200 community banks and credit unions in partnership with financial firm Kasasa.

The same study also revealed that roughly seven in 10 Americans (71%) believe that the big banks have yet to make up for their role in the financial crisis.

Advertisement.

Conclusion — we’re still mad at the banks. And, judging by the rise of the Tea Party and other anti-bailout movements, we’re also still mad at the other culprits in the bailout debacle, the federal government.

Whitman Wisdom

“Make no more laws than those useful for preventing a man or body of men from infringing on the rights of other men.”

–Walt Whitman

The great poet is full of beautifully written wisdom, but perhaps none as beautiful as this libertarian-like reminder about the role, and limits, of government.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Making Money Alert readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Ask Doug.

Advertisement.

In case you missed it, I encourage you to read my e-letter column from last week about why commodities are rebounding in 2014. I also invite you to share your thoughts below.

share on:
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE