Seven Things You Should Know 11/20/2009

Seven Things You Should Know

November 20th 2009 

1.  Six Month Periods:  The 6-month period from November-April has gained +230% for the S&P 500 since 1990, more than 5 times the +44% return achieved during the 6 months from May- October. Both numbers are total return performance results from 1/01/90 to 10/31/09 (source: BTN Research)

2.  Breadth Weakening:  In the S&P 500, 60% of stocks are trading above their 50-day moving averages.  As shown in the first chart below, this indicator has made a series of lower highs in recent months, even as the S&P 500 has made subsequent new highs over this time period.  This means that less and less stocks have been helping the index move higher.  (source: Bespoke Investment Group)

3.  Interest Rates:  Following the end of our nation’s 8 month recession in November 2001, the Federal Reserve first raised interest rates on 6/30/04 or more than 2 ½ years later (source: National Bureau of Economic Research)

4.  Retirement:  Americans that are working today expect to live an average of 21 years in retirement (source: Wells Fargo)

5.  Institutions Sidelined:  2009 has been a bountiful year for institutional investors, and thus we believe many are moving into “hibernation,” shifting to lower Beta, expecting little upside into year-end. With a greater share of hedge funds re-attaining their “high water” marks and a large 33% of mutual funds beating their benchmarks, it is not too surprising that it appears trading in some stocks is becoming more difficult with volumes falling. (source: JPMorgan)

6.  Earnings:  Next week, we’ll see reports from Hewlett-Packard (HPQ), Barnes & Noble (BKS), and Deere & Co (DE).

7.  Econ Calendar:  Next week we get the Case-Shiller 20 Index (home prices), November Consumer Confidence Index and October New Home Sales.

Have a great weekend!


This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. real-primewire commented on Sep 16

    … [Trackback]

    […] Read More here to that Topic: […]

  2. commented on Sep 22

    … [Trackback]

    […] Info to that Topic: […]

  3. old facebook commented on Sep 25

    … [Trackback]

    […] Info on that Topic: […]

  4. immediate edge review commented on Sep 29

    … [Trackback]

    […] Read More Information here on that Topic: […]

  5. pinewswire commented on Sep 30

    … [Trackback]

    […] Find More to that Topic: […]

  6. maha pharma steroid reviews commented on Oct 08

    … [Trackback]

    […] Find More Information here to that Topic: […]

  7. latest pharma news commented on Oct 20

    … [Trackback]

    […] Here you can find 90247 additional Information on that Topic: […]

  8. What is Regression Testing commented on Nov 25

    … [Trackback]

    […] Read More on on that Topic: […]

  9. rbc bank sign in commented on Nov 27

    … [Trackback]

    […] Here you can find 79925 more Information to that Topic: […]

  10. tangerine online sign in commented on Nov 29

    … [Trackback]

    […] Read More Information here to that Topic: […]

  11. Unicc commented on Jan 29

    … [Trackback]

    […] Read More here on that Topic: […]