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Back to School Stock Sales?

  • Broadcast in Finance
Natalie Pace

Natalie Pace


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Wall Street has been on a rollercoaster again this year, and "new money" isn't coming in. There is still a lot of dough on the sidelines, earning 0% interest, wondering what to do. One banking executive says it this way, "The economy is an economic mess because we print money. There are no investments to compete with stocks as there is no interest rate. The stock market goes up for the same reason a dictator gets 95pct of the vote: no alternative.”

According to Howard Silverblatt, the senior index analyst at S&P Dow Jones Indices, the fundamentals of publicly traded companies are good, it's just the perception of the marketplace that is not so good. "Fund and money managers have stayed in the market, with the joke being that they are too scared to be out of it," Howard wrote in a note in July. 

Meanwhile, the Middle East is still in crisis, oil prices are at all-time highs and the 1st quarter GDP growth in the U.S. was a shocking contraction of 2.1%.

So, is this the calm before the storm or the rally? Did you know that September, when fund managers and American investors return from vacation, is historically the worst performing month of the year? Will this year be a true to form? Are you protected? Will you be able to pick up some bargains before the Santa Rally?

Santa Monica Beach, CA Retreat Oct. 11-13, 2014


The ABCs of Money on Amazon (print edition)