Happy New Year

Happy New Year!


We are working on a new web site and blog.  Stay tuned...
-JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

The Markets Decide as Risk Increases



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 The markets have decided that things do not look good. 

Spreads between Treasuries and Corporate Bonds are increasing and relatively high.  Volatility measures remain high and increasing.  Both point to market weakness and elevated risk.

Markets will bounce up from this oversold condition, but the trend is still negative.

-JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

Approaching a Decision

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After going sideways from August to October as the European Debt Crisis unfolded, US stocks (SPY) moved up a bit higher, but are stuck in a "flag" pattern waiting for more news.  We remain very cautious as well, waiting for some sign of confidence that Congress can make a rational decision, and whether Europe can keep it all together.  - JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

Welcome Back and Watch Out!

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Welcome back from those vacations to school and work.  Stock and bond market participants are back as well, and they do not like what they see.  The uncertainty with sovereign debt in Europe threatens financial stocks and bonds worldwide.   The lack of clear direction and action from Washington also makes the markets uneasy.  This is usually the time to seize opportunities, but we will wait to let the markets show their fear before jumping back in.  Indicators of financial risk are still rising so waiting a bit longer appears to be the prudent course.  The VIX volatility index is show above.  The market will move up when the VIX comes back down.

-JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

Visible Risks

Visible Risks:

1.  Panic in the stock market developing.
2.  Further problems in Europe affecting Banks worldwide.
3.  Double Dip Recession in the US



-JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

Gold vs Gold Mining Companies

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An interesting divergence is occurring between Gold (as represented by the exchange traded fund GLD) and Gold Mining Stocks (XAU).  They normally follow each other but this has not been the case lately.  If you own mining stocks they have held up better than the stock market generally, but have not participated in the rally in the actual metal.  Howard Ruff, an expert who has followed gold for decades, expects these to eventually converge with the mining stocks rising.  This kind of divergence may also be caused by the decline in other metals that are part of the mining production, or perhaps an overall decline in the demand for gold for industry due to the exceptionally high price.  I have seen the same thing occur with Oil and Oil Companies when the price gets exceptionally high.
-JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

Market Update

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My last post indicated a possible bounce to the upper red line, but that was blown away by the surprise timing of the S&P downgrade of US Debt.  Today we had a dramatic short covering rally that took us a way back up but provides not evidence that the down trend is over.  We expect the volatility to decline but the bear market to continue.   And the market has given us a chance to reposition any market overexposure.  Hang on for the ride.  -

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.JOHN