Navellier | Market Observations Blog

Baltic Dry Index Continues to Rebound

Tim Hope, Navellier & Associates — 2009-06-30T17:26:00-08:00

The Baltic Dry Index (which is used to track worldwide shipping costs for bulk cargos) is often used as a leading economic indicator. After falling a record 92% in 2008, due largely to a slump in the demand for steel as well as a weak overall...

Historic U.S. Debt Mountain

Tim Hope, Navellier & Associates — 2009-06-19T19:25:00-08:00

Total U.S. credit market debt (to include the financial sector) as a percentage of GDP is nearly double its historic average. Such high debt levels could act to reduce the policy options for government leaders and also could make the overall...

State income tax revenues in free fall

Tim Hope, Navellier & Associates — 2009-06-18T17:03:00-08:00

According to a recently released report by the Rockefeller Institute, state income tax collections for the January – April period in 2009 are down significantly compared to the same time period last year. For those states with a personal...

An ugly look at government debt

Tim Hope, Navellier & Associates — 2009-06-16T20:41:00-08:00

With policy makers creating new (and seemingly ever bigger) spending plans, it is instructive to gain some perspective as to where the Unites States stands relative to historical debt levels. The chart below reflects the total amount of...

Economy crawling out of a trough

Tim Hope, Navellier & Associates — 2009-06-15T19:29:00-08:00

Among some of its functions, the Organization for Economic Co-operation and Development (OECD) tracks leading economic indicators for 35 countries. With respect to the United States, the OECD Composite Leading Indicator (CLI) ticked higher in...

Trend in margin debt signaling an oversold market

Tim Hope, Navellier & Associates — 2009-06-10T16:49:02-08:00

The rate of change in margin debt is at a historic level not seen in nearly 40 years and indicates a potentially oversold condition in the stock market. While history may not repeat itself, such deviations can act as an indicator of...

Positive market trends

Tim Hope, Navellier & Associates — 2009-06-08T18:56:00-08:00

Those who are fond of using moving averages to identify market trends are encouraged given that the major equity indices have recently crossed their respective 200-day moving average. Historically such market behavior is considered to be...

Bear market leap

Tim Hope, Navellier & Associates — 2009-06-05T18:31:01-08:00

Some investors may call the present rally off the March 9 market bottom a bounce off the bottom. However, given the performance of some sectors it may be more appropriate to call such market performance a leap. Regardless of the...

Value stocks are overvalued

Tim Hope, Navellier & Associates — 2009-06-03T18:24:00-08:00

In looking at nearly 30 years of median P/E data for value stocks, it can be argued that they are overvalued. Interestingly, the median value stock P/E is at a historic high and is over two standard deviations from its historical average...

The market is punishing quality companies

Tim Hope, Navellier & Associates — 2009-05-29T17:25:00-08:00

Interestingly, despite the current economic stresses, so far in 2009 the lower the quality of the company the better the returns for its stock. The reason for such a phenomenon is an open question. It could be that lower quality...