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Articles from 02/2016

Bear-Market Suspense

On February 11, the S&P 500 closed at 1,829, its lowest point since the all-time high of 2,131 set last May. As Mark reported, there was no follow through on the downside the next day, meaning the market stopped short of
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The High Cost of a Free Lunch

“Free” is a very powerful incentive. In one of the more amusing examples of the power of free, in his book, “Predictably Irrational,” Dan Areily described an experiment in which college students were offered their choice
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Has the Dow Theory Turned Bearish? And Should You Care?

I cringed a bit when I saw this MarketWatch headline on Friday: "The Dow’s downtrend is now official." There are a few reasons the headline is problematic. First, no one is in a position of authority to make formal
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No Bear Alert Yet

There is no bear alert signal to report this week. The S&P 500 briefly dropped below the trigger level yesterday, the first time that has happened in these declines stretching back to last August. But to generate an
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Now Available: Personal Portfolio Tracker and Fund Performance Rankings with Data through 1-31-16

SMI's Personal Portfolio Tracker and monthly Fund Performance Rankings report have been updated to reflect data current through 1/31/2016. The Tracker and FPR are updated monthly between the 10th-13th of the month,
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What Makes SMI Different

It's been over 17 years since I decided to join Austin at Sound Mind Investing. At the time, I wasn't very familiar with investment newsletters. I remember that one of the primary "objections" I had to overcome in deciding
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Why Have Stocks Been Falling — Don’t Overlook Earnings

Many factors influence stock prices in the short-term: news events, investor sentiment, interest rates, etc. But in the long-term, stock prices are very highly correlated with company earnings. That makes perfect sense,
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Notes, Quotes, and Anecdotes

We didn’t have space for this content in the last issue of the newsletter, so we thought we’d share it with you now — some points to ponder, mostly about the rocky start to this year in the market. Learning about yourself
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