Tag Archives: Dow

Investors Look to Dow Transports for Growth and Dividends

With the media focused on Dow 17,000, we often overlook some promising investing opportunities in the Dow Transports. The Dow Jones Transportation Average was the first listing in 1884. It had nine railroad stocks in the index. The Dow Jones Industrial Average came later in 1896. Throughout the late 1800s and early 1900s, rail transportation dominated the way goods were shipped throughout the country. At one point in 1916, the US had 254,000 railroad lines. From then on railroads had to compete with trucks and air transportation and saw a loss of revenue and jobs. However, we are in the midst of a new revival of rail transportation with both ton miles shipped and net proceeds setting new records.Continue Reading

Where is the Price of Gold Headed?

The markets have turned in a strange performance over the past several weeks. The numbers on the economy came in weaker than expected with GDP down -.1% in April. Unlike other recoveries, spending growth has decelerated. Each year it takes a step down. This is not the way it should be. In all past recoveries, spending growth increased as the economy grew. Discretionary spending was up but 90% of that was due to inflation, especially in food and energy. Consumers are being forced to spend more. Our US deficit is running at about $17.3 trillion. The US Federal Reserve’s Balance Sheet has grown to $4.9 trillion. Surprisingly, the US stock market made a new all time high in the Dow and S & P. Gold, on the other hand, fell to its lowest level in the past 15 weeks.Continue Reading

Market Update May 15, 2014

So far 2014 has proved to be quite frustrating and confusing. We ended 2013 on and upbeat note with the Dow and S & P making new all time highs. At the time only 16% of investors were bearish on the market. In December 2013, then Chairman, Ben Bernanke, of the US Federal Reserve started to taper bond purchases by $10 billion per month.Continue Reading

Why there is Falling Unemployment and a Drop in the Dow?

On Friday, the Labor Department reported an increase of 288,000 new jobs. The unemployment rate fell to 6.3%, the lowest in 5 ½ years. At the outset this was good news for the market, but as the day wore on, the Dow Jones Averages started to fade and ended down 45.98 points. What should have been a rip roaring rally fizzled. Some blamed the crisis in Ukraine.Continue Reading