Category Archives: Blitzer’s Insights

Your Expectations Are Being Managed… by the Fed

Economists agree that what people expect the future to bring helps determine the economy’s future.  Expect prices to rise? Buy in advance.   Expect everyone to invest in that hot stock?  Go online and buy the stock now. Expect the Fed to keep interest rates so low money is almost free? Take some risks, buy that Read more […]

Looking for What Works at the Fed

The FOMC, the Fed’s policy makers, meet Tuesday and Wednesday this week.  For investors the key agenda items are tapering and the future of QE3. Interest rate policy is almost forgotten as everyone prepares to scan the announcement expected at 2 PM Wednesday and then rush to either buy, or sell, bonds.  Market pundits seem Read more […]

Companies Dying Faster?

MIT’s Technology Review pitches an argument by Richard N Foster, well known consultant, which uses exits from the S&P 500 to show that companies suffer shorter lifespans these days and are dropping off indices faster than they used to.  Foster includes a chart showing a seven year moving average of corporate lifespans including a forecast beyond Read more […]

The Dow: 3 for 3

This morning (September 10th) S&P Dow Jones Indices announced three deletions and additions for the Dow Jones Industrial Average.  This post explains why we made these changes. The press release is on www.spdji.com The Dow is price weighted – each stock’s weight is the ratio of its price to the total of the prices of Read more […]

Too High or Too Low? Look at Tobin’s Q

August was not the best of months in the stock market: the S&P 500 lost 3.1% and the Dow lost 4.4%.  This leaves investors wondering what’s next? The stock market bounces up and down more often with more amplitude and less method to its madness than the rest of the economy.   If one could get Read more […]

Jaw-Boning at the Fed

When the FOMC minutes were released on Wednesday (August 21st) at 2:00 PM analysts and investors combed through all ten pages looking for some hint of when QE3 might be tapered or what new trigger was be watched by the Fed.  This was old news from a time capsule:  The meeting was three weeks earlier Read more […]

Malaise and Fears of Fed Tapering

The market’s malaise and its poor results on Thursday August 15th are being blamed on fears of Fed tapering.  Unless the Fed has a surprise change of heart, these fears will be with until tapering starts, so examining them is worthwhile.   Most signs suggest the economy will continue to gain strength.  Weekly initial unemployment claims Read more […]

S&P 500 and Dow Jones Industrial Average

The two best known and most widely followed stock indices in the world are the S&P 500 and the Dow Jones Industrial Average.  While both follow large cap US stocks and both have long histories, they are quite different in some important ways. The Dow is the oldest regularly calculated stock index dating back to Read more […]

The Dog Days of Summer

Markets and investors both seem to be thinking about August vacations and little else these days. As we enter the second full week of August – or the third week before Labor Day for the pessimists and workaholics – things seem to be going quiet.  The Dell buyout, just about the only contested M&A action, Read more […]

Inside the S&P 500: What Made it Rise… or Fall?

The first question asked as the market closes is why did it go up? Or, if the results were less appealing, why did it fall?  Either way the usual answer of more buyers than sellers is no answer at all.  The real question is what sectors pushed the market higher or which stocks sent it Read more […]