"The important lesson for the outside stock-market investor is to ignore all transactions by large shareholders, " he says.
WSJ: Hulbert on Investing: Company Insiders Are Dumping Shares! Or Are They?
Since the stock market reflects investor sentiment, it goes up amid more confidence about the economy and prospects for growth.
On the stock market, investor sentiment is now at extremes of bullishness and confidence regarding 2011, and for good reason.
FORBES: Take Some Profits, Hold Some Cash, Buy With Both Hands Later On
While companies like A123 have been able to raise significant amounts of equity in the stock market when investor sentiment is high, relying upon the whims of the marketplace is not a good financial strategy, particularly when a company does not have a clear path to profitability.
FORBES: Chinese Company Offers To Acquire A Leading U.S. Battery Maker
That projection and the big stock market rally factoring the expectation into stock prices, has lifted not only the stock market, but investor sentiment, which is now at an extreme of optimism and complacency often associated with market tops.
But as economist Donald Luskin has written, small changes in GDP cause big swings in corporate operating leverage and thus in stock market values, investor animal spirits and consumer sentiment.
Short-term, the stock market is overbought, and investor sentiment is at high levels of bullishness and complacency usually seen at rally tops.
Are these changes by which the quants and their algorithms are taking over the stock market beneficial for the small investor, not to speak of the mutual funds, pension funds and bank trust departments that also represent the little guy?
Mr. Jackson's bet: that, because the strike price entitled an investor to own Kimberly-Clark shares at a price lower than the stock's current market price, the investor who bought the call options would exercise the contracts before the ex-dividend date to capture the company's 60 cent-a-share payout (recently increased to 66 cents).
WSJ: Running With Scissors: Another Way Dividends Can Boost Your Stock Portfolio
The stock market is presently the gauge for investor risk appetite in the market place.
The flawed IPO is blamed for hurting investor confidence in the stock market.
WSJ: Nasdaq CEO Robert Greifeld: 'Arrogance' Contributed to Facebook IPO Flaws
The average investor increasingly views the stock market as a rigged game.
FORBES: Insider Trading: Can An Average Investor Find Comfort In The Latest Probe?
Wallace Forbes, CFA, president of Forbes Investors Advisory Institute which publishes the Forbes Special Situation Survey, Forbes Growth Investor and the Forbes Stock Market Course.
The proposals are part of a package of measures Bush will push as critical to restoring the credibility of corporate America and investor confidence in the stock market and broader U.S. economy.
Among the long list of similarities I noted then, were that a year ago government stimulus programs were also coming to end, the economy was already showing serious signs of slowing, the stock market looked to be overbought, and investor sentiment was unusually confident and bullish.
While market volatility and economic uncertainty continue to shape investor sentiment, a number of investors viewed the recent stock market weakness as an opportunity to purchase beaten-down stocks.
FORBES: Low Bond Yields Push Investors Towards Dividend-Paying Stocks
In a round of interviews on Monday, investor Warren Buffett said the stock market looked "reasonably priced" even after its surge.
So, how does a sensible investor start investing in the stock market?
The latter has always resulted in investor jitteriness, visible in the stock market.
FORBES: Is Sri Lanka Taking A Turn For The Worse Again? Watch The Stock Market
If an individual investor sells stock because they think the market is heading south due to higher personal income taxes, this becomes a buying opportunity for those who are not hindered by the same tax treatment.
FORBES: The Case For Higher Stock Prices After Tax Increases
By sharing information with the market, companies reduce investor uncertainty and prevent stock prices from swinging wildly upon unexpected bad news.
In Asia, the Japanese stock market fell as the yen rallied on safe-haven investor demand due to the resurfacing of the EU debt crisis.
FORBES: A.M. Kitco Metals Roundup: Gold Sees Fresh Safe-Haven Demand on EU Worries; Bernanke on Deck
Stock-market gravity is known by many names: negative investor sentiment, lack of confidence in the system, panic, depression and a whole host of other fun terms.
Investor sentiment is often influenced by recent stock market action.
The disappointing jobs report could have the effect of providing the catalyst for the stock market to correct enough to alleviate that overbought condition and cool investor sentiment off to a healthier level.
Investor interest has been strong, but the recent stock market surge may shift some money away from real estate into stocks.
By October 2009, the stock market had recovered all its loss from the previous September 30 and Investor 1 was making money again.
He then says that if that investor had missed the 30 best days in the stock market, that return would have been negative.
FORBES: Malkiel Shills For Indexing Again, But Backs Baidu Just In Case
Jeffrey Hirsch, editor of Stock Trader's Almanac Investor, is an unflappable propagator of market truisms, and his father, Yale Hirsch, discovered the "best six months" strategy in 1986.
Market tops in the U.S. stock indexes would mean less investor monies flowing into stocks, which would also suggest increased investor and trader demand in other asset classes, such as gold and silver.
应用推荐