BIG STOCK SELL-OFF IN YEAR END FINALE?

December 10, 2012

The approaching fiscal cliff and the probability of higher taxes could prompt an end of year sell-off in the stock market. Investors should prepare by diversifying into assets which are not positively correlated with stocks. Gold investments in particular are well-suited for this purpose…

Wall St Week Ahead: “Cliff” worries may drive tax selling

Investors typically sell stocks to cut their losses at year end. But worries about the “fiscal cliff” – and the possibility of higher taxes in 2013 – may act as the greatest incentive to sell both winners and losers by December 31.

The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-related selling even more appealing than usual.

 

http://ca.news.yahoo.com/wall-st-week-ahead-cliff-worries-may-drive-171035415–sector.html

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APPLE STOCK FALLS MOST IN 4 YEARS

December 6, 2012

In another indication that the financial markets are resting on shifting sands, the tech world’s darling, Apple Computer, has now seen its stock fall precipitously, as we reported previously. Now, however, the stock has experienced its worst decline in 4 years.

Investors should take this as a warning that they need to diversify into investments that are not positively correlated with stocks. Gold investments, such as rare gold coins, have historically moved independently of the stock market, making them an ideal diversifier for a balanced investment portfolio…

http://www.reuters.com/article/2012/12/05/us-apple-shares-idUSBRE8B40VK20121205

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What Goes Up, Must Come Down

November 16, 2012

Despite very questionable economic news, the stock market has appreciated in much of 2012. It was led principally by Apple Computer, the darling of the tech industry.

In case you haven’t noticed, Apple is in trouble now. It’s stock is down, way down from its highs. In fact, Apple shares have fallen 25% since late September. Yesterday the stock fell 2.4%.

Investors must consider whether or not Apple is the “canary in the mineshaft.”

How can a company whose shares investors chased up 74% in a year suddenly fall out of favor like it has?

Something is spooking investors. And we suggest that that something should not be viewed as exclusive to Apple. The stock market is vulnerable and investors should diversify into assets that are not closely correlated with stocks.

Rare gold coins are particularly useful in this regard.