Where To Invest When The Stock Market Bubble Bursts

and AT&T Inc. fell 1.7 percent and 0.5 percent, respectively. Stocks such as utilities, pharmaceuticals and telecommunications are often purchased because they provide a higher-than-normal dividend. As Treasury yields rise, it makes all dividend-paying stocks less attractive to investors because Treasuries can provide a similar return with significantly less risk. You try to focus on stocks that usually benefit from higher interest rates — banks are a good example, said John Fox, who oversees $873 million in assets as co-manager of the FAM Value Fund.
Source: http://www.washingtonpost.com/business/stock-market-edges-higher-early-friday-but-stocks-remain-down-for-the-week/2013/08/16/22e1d9b2-0684-11e3-bfc5-406b928603b2_story.html

Three reasons to worry about the ‘hot’ IPO market

Well, something… WESSEL: Get that? GREENE: I do. Something else that keeps economics reporters gainfully employed, following trends around the world. And there have been some unexpected ones going on right now. WESSEL: That’s right.
Source: http://www.npr.org/2013/08/16/212527895/stock-market-falls-as-u-s-economy-does-better

Everbright Securities Trading Error Roils Shanghai Stock Market

The NYSE index is greater in value than it was 50 trading days ago. Originally, this was expressed as a rising 10 week moving average, but the new rule is more relevant to the daily data used to look at new highs and lows. The McClellan Oscillator is negative on the same day. The number of New 52 week highs cannot be http://www.todayhotstocks.com more than twice the number of new 52 week lows (though new 52 week lows may be more than double new highs). Doomers will argue that this only supports their case for a major 1987-style sell-off .
Source: http://www.businessinsider.com/hindenburg-omen-warns-of-stock-market-crash-2013-8

Stock market opens lower after Nordstrom joins other retailers in cutting outlook

The Standard & Poors 500 index slipped 5 points, or 0.3 percent, to 1,657. The Nasdaq composite rose one point, or 0.05 percent, to 3,607. More business news Where presidents play, wealth gap is stark Billy Kenber Marthas Vineyard is actually a place where the wealth gap is starker than almost anywhere else in the United States, residents say. Many rely on food banks. Capital One acquires Beech Street Capital Jonathan OConnell The move means Capital One is poised to become a larger player in the financing of apartment buildings.
Source: http://www.washingtonpost.com/business/stock-market-opens-lower-after-nordstrom-joins-other-retailers-in-cutting-outlook/2013/08/16/eba46cac-067a-11e3-bfc5-406b928603b2_story.html

When You Get This Many Hindenburg Omens, The Stock Market Is Supposed To Crash

Disruptions in electronic markets have been under scrutiny since a May 2010 incident in which the Dow Jones Industrial Average fell almost 1,000 points in minutes before rebounding. This is a negative development for Everbrights stock, said Liu Jun, an analyst at Chang Jiang Securities Co. in the central city of Wuhan. Everbright Securities business transformation has been slower than expected and its investment banking business is under investigation, which could affect its bond underwriting. The Shanghai Composite jumped from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes during the morning session, as 16 of the measures 20 biggest companies by weighting increased by the 10 percent daily limit.
Source: http://www.bloomberg.com/news/2013-08-16/everbright-securities-investigates-trading-system-error-1-.html

To appreciate why the second explanation is closer to the truth, consider a study of the stock market between 1929 and 2001 conducted by Owen Lamont, then a finance professor at Yales School of Management and currently a lecturer at Harvard. He found that companies tend to issue stock in waves, and that the stock market tends to be a below-average performer following periods in which stock issuance is particularly high. Click to Play GrubHub Seamless now at 25,000 restaurants strong GrubHub and Seamless approved a merger last week that now covers about 25,000 restaurants in 500 cities. Jonathan Zabusky, former CEO of Seamless and current president of newly united GrubHub Seamless, joins digits. A second reason to worry about the IPO market comes from the kind of companies that have come to market in recent weeks.
Source: http://www.marketwatch.com/story/three-reasons-to-worry-about-the-ipo-market-2013-08-13

Security in this kind of balanced portfolio is invalid, and investors will be crushed. Some smart investors have been aggressively liquidating holdings directly affected by the public markets, in anticipation of an imminent collapse. We are among those who have begun to reduce our exposure to the public markets. Where appropriate, we believe that a strategy of up to 70% of assets invested in both liquid and illiquid alternative investments will be very successful moving forward. Our selection of alternative investments is an intensive process, which attempts to avoid virtually any investments that have performance directly tied to the appreciation of the S&P 500, and stability of the bond market.
Source: http://www.forbes.com/sites/jeffreysica/2013/08/15/where-to-invest-when-the-stock-market-bubble-bursts/


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