Your Almost Daily Bit of Wall Street Wit & Wisdom

grizzly bear snacking on berries

Grizzly Bear snacking on berries, h/t Drew Rush / NatGeo

After an early bounce, tired bulls are on the back foot. Hungry bears are selling. When asked why the market moved up or down on a given day, my dad would answer in his Brooklynese, “Sometimes the bulls gotta get fed and sometimes the bears gotta get fed.”

Best regards,


Your Almost Daily Bit of Wall Street Wit & Wisdom

Point drops in any index, be it the DJIA or the S&P 500, are meaningless.  All these ‘3rd largest (point) drop in history’ stories are meant to mislead and scare you.  Don’t let them.  The only thing that matters is by what percentage did an index or stock decline or advance.”
— Jim O’Shaughnessy, @jposhaughnessy


November Returns


by Steven Sarnoff

November Returns

We welcome the onset of a new month with stocks seeking to extend their record run.

Analysts often look to past returns for an idea of what to expect going forward. But the well-known disclaimer, “Past results are not indicative of future returns,” is always applicable.

One of my favorite market adages is that “It’s the little exceptions that get you.” So one is well-served to view historical returns with eyes open to alternative outcomes.

The following chart arrived in my Inbox, depicting monthly trends for the Dow Jones Industrial Average over the last 20, 50, and 100 years.

Continue reading

Is The “Buy the Dip” Crowd Facing A Rough Road Ahead?


by Steven Sarnoff

Those who drive down the gritty paradise that is the Baja may recognize this stretch of road found south of Margaritaville San Felipe.  Drivers are warned as they approach a “zona de vados” to moderate their speed, because hitting a dip with velocity can end up being fatal.   So to, a trader must see the signs to know when conditions are clear and when to proceed with caution.  Blindly taking up positions may wreck your portfolio. Continue reading