The great debate on Wall Street is whether the recovery that spurred stock prices to nearly double between March 2009 and April 2010 is about to be snuffed out. The evidence for a "double dip" recession: Europe's economy is teetering; federal stimulus that propped up the credit and housing markets is nearly exhausted; retail sales and manufacturing are declining again.
When it comes to investing in small companies, there are usually a couple of things you can be sure of.
Hey there risk. Welcome back. What's shaking?
If ever you were entitled to start breathing easier, now would seem to be the moment. So why am I telling you not to?
If you had the courage to buy stocks when the market hit bottom in March, congratulations! The S&P 500 and Dow Jones industrial indexes are near highs for the year after soaring around 50% since then.
Don't let Tuesday's rally fool you. While the Dow roared back more than 236 points and the S&P 500 gained 4%, Monday's 12-year lows showed that this bear market may still grow bigger and meaner.
Every major market crash is considered a teachable moment. And the lesson for investors invariably centers on the risk of overreacting to the news, in this case by attempting to flee equities when they're down. Countless studies have shown that this type of market timing will cost you dearly.
The stakes are high whenever you invest, but they're extra high when you're managing your money amid a historic financial mess and record volatility.
How did this crisis happen? Could it get worse? When will the pain end ? If you were looking for answers to those questions - and you should be - you'd seek out someone with knowledge of the past and a record for being right about the future.
Credit crises have always been painful and unpredictable. The current one is particularly hair-raising because it's occurring amid the first truly global bubble in asset pricing. It is also accompanied by a plethora of new and ingenious financial instruments. These are designed overtly to spread risk around and to sell fee-bearing products that are in great demand. Inadvertently (to be generous), they have been constructed to hide risk and confuse buyers.
Markets have been hitting new highs, prompting some Wall Streeters to celebrate while others tremble. The real estate bust is officially underway--will that tank the economy or just shift the actio...
Back in the dot-com years, profits were optional for many stocks. The market rose instead on bouts of exuberance and barrages of salesmanship. Those days ended during the meltdown of 2001-02, and s...
Jeremy Grantham, chairman of the $120 billion money-management firm GMO, is known among investing pros as both a master trend spotter and an unparalleled decoder of data. He makes money by buying u...
Where are stocks and bonds headed? We went straight to those who make it their business to predict such things: five respected--and opinionated--portfolio managers and analysts. In the bullish camp...
Fortune: Here comes the crashupdated: Mon Nov 15 2004 00:01:00
Talk to Jeremy Grantham about the stock market, and you get the impression the sky is about to fall. For years the chairman and chief strategist of money-management firm Grantham Mayo Van Otterloo ...
There once was a dot-com bubble That got the whole world into trouble You'd have thought we'd have learned Having once been badly burned But scams rise up from the rubble
The ongoing conflicts in the Middle East, the recall election circus in California, and even the fur flying between Al Franken and Bill O'Reilly may lead the news from one evening to the next. But ...
Mutual fund investors are supposed to be a hardy bunch. Usually when the market drops sharply, they are among the last to give up and sell. Even in miserable 2001, investors added a net $32 billion...
The third year of this bear market finally took the fight out of some of us. As of Nov. 30, investors had dumped $20 billion more in U.S. equity fund shares than they bought.
If you're like most investors, by now you've probably concluded that the stock market really can't get much worse. Those monthly statements from your broker lie unopened at the bottom of a desk dra...
How much will stocks return in the future? Few questions are more important to investors--and few are harder to answer.
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