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U.S. stocks are somewhat mixed this morning, with some sectors gaining and others falling a bit. In general, though, even the news that higher oil prices are being seen had small effect on stock index futures — although that could change.

One of the main worries right now is that there could be more bad news. Every time there has been some optimism on the stock market recently, things have turned around and become worse. Bloomberg reports on some of the fears regarding U.S. economic data:

“My concern is that we still have not yet seen all of the bad news come to the table,” James Bevan, who helps oversee about $10 billion as London-based chief investment officer at CCLA Investment Management, said in an interview with Bloomberg Television. “I’d be much happier attempting to buy the S&P 500 at 1,150,” or about 10 percent lower than yesterday’s closing price, he said.

Predicting the stock market

Predicting the stock market is actually rather difficult. It is a volatile market (although not as volatile as some), and it can change direction unexpectedly. And, while it is possible to pick out trends in the direction of stocks and other investments, one never knows when that trend will change. This is why “timing the market” rarely works.

For most people, the best investing strategy is to buy when there is a dip and try to sell when there is a bounce. For those who are not concerned with being active traders, the “buy and hold” strategy is one that is often used. Since the stock market generally gains over time, having solid stocks that are likely to have steady gains over several years are considered relatively safe bets — although even the best plans can go awry and the best companies fail.

In the end, it is important to note that no one really knows where U.S. stocks are headed — especially in the near future. The best you can do is, well, the best you can do.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, stock market news, investing blog, U.S. stocks,
economy, investments, investing strategy

The stock market is mixed this morning, as new data comes in. Worries over the financial sector (thanks to news of bank failures and crackdowns) are renewing themselves again. Additionally, oil prices are rebounding after declining overall for a few days. Increased oil prices usually weigh on the stock market. Investor’s Business Daily reports on some of the movers today on the stock market so far:

GMX Resources (GMXR) gained 2.85 to 71.34 in fast trade. The oil and gas producer is working on the right side of a new base.

Group mate EOG Resources (EOG) climbed 5.30 to 105.71 on brisk volume. It’s trying to recover from a 37% sell-off, but the stock has met resistance.

On the downside, Big Lots (BIG) fell 1.68, or 5%, to 31.38 in heavy trading, despite beating views and raising guidance.

LDK Solar (LDK) slipped 0.81 to 49.25 as it pulled back from a seven-month high. The Chinese solar wafer maker rose 9% Monday on a strong sales outlook.

With economic data mixed, investors are wary of where to go next.

One of the best things to do in times like these is to carefully evaluate some value stocks that are likely to pull through the current bear market. This are stocks of companies with strong fundamentals. Strong fundamentals mean that the underlying strength of the company’s management and business model will pull the stock through these tough times.

The reason now is the time to buy such stocks is that you can get them for a lower prices. At some point, the stock market will rebound (it always does; over time the stock market gains overall) and when it does, the solid stocks that you buy now will provide you with some tidy gains. The trick, of course, is choosing the stocks that will make it through this particular difficulty.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, stock market news, investing blog, value stocks,
bear market, investments, oil prices

Ben Bernanke made a speech in Jackson Hole, Wyoming today. The subject was financial stability and reducing risk in the system. Bernanke offered a message on inflation, insisting that in the coming months the pressures would moderate. This is good news for many who are concerned about the skyrocketing prices for food and energy.

Bernanke’s remarks are also having quite an impact on investing. Investors generally look to the chairman of the Federal Reserve for clues on where monetary policy is headed — as well as for insight into the state of the economy and the financial markets. The decisions that the Federal Reserve makes can affect a variety of markets. This is why investors pay attention to Bernanke. They are hoping to get an idea of where the wind is blowing.

Stock market, U.S. dollar see gains

Ben Bernanke’s optimism regarding the U.S. economy and the financial markets is giving a boost to today’s stock market activity. Right now, the stock market is rallying right now on the news, in the hopes that it means bigger profits and lower ovehead.

The U.S. dollar is also rallying. The greenback has had a strong week, despite yesterday’s dip. Bernanke’s remarks are providing hope for dollar bulls, providing them with ideas of an economy that can support a stronger U.S. dollar.

Of course, Bernanke has been fairly optimistic overall regarding the economy and U.S. financial markets since the crisis first hit last year. It remains to be seen whether this “confidence boosting” will be of help to the markets in the long term.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, stock market news, investing blog, investing news,
economy, Ben Bernanke, U.S. dollar