Jim Stack: Market Insights from Montana

A recent article in Barron’s shares market insights from Jim Stack, a Montana-based financial advisor whose money management firm is known for its “willingness to reduce stock exposure when markets appear overvalued.” Here are some highlights: ·      On recession risk, Stack points out that “no recession in U.S. history has been forecast in advance by an poll of economists,” adding that investors should instead look for warning signs or “factors that signify it is late in… Read More

Housing Bear Predicts a Rough 2019

James Stack, who forecast the 2008 real estate crash as well as last year’s housing slowdown, says that “housing could be heading for its worst year since the last housing crash,” according to a recent article in Bloomberg. Stack warned: “Expect home sales to continue on a downward trend in the next 12-plus months. And there’s a significant downside risk to housing prices if a recession takes hold.” Last January, the article reports, “Stack was… Read More

Inflation and Stock Price Increases Causing Worry

Earlier this month, inflation and interest rate concerns sent stocks into a “historic and nerve-rattling plunge,” but the market rallied shortly thereafter, leading some experts to say that stocks can continue to rally even if both indicators creep upward. This according to an article in The New York Times. According to Brian Nick, chief investment strategist for Nuveen, while the past 20 years have seen a strong correlation between stocks and interest rates, the same… Read More

The Stock Market Party Must Eventually End

The market’s continued gains may “not be such good news for investors,” according to a recent article in The New York Times. The article offers insights of market historian and InvesTech Research president James Stack: “If there are any certainties, one will be that this party will eventually come to an end. A correction would be healthy. The longer we go without one, the greater the risk this will end badly.” The article points out… Read More

Market Timing Indicator Kicks off Rare Buy Signal

Most would agree that valuations in the current mature bull market make buying equities a bit less alluring than they were, say, when the U.S. was emerging from the 2008 global financial crisis. However, according to a MarketWatch article by Mark Hulbert, an indicator referred to as the Coppock Guide is suggesting that the potential still exists for “significant returns.” Edwin Coppock was a technical analyst who proposed his market-timing model in an article for Barron’s in… Read More