Tag Archives: Russell 2000

Smart or Silly Markets ? …. Football …

We are just not sure what happened at the beginning of the year….

  • China Concerns
  • Interest Rate concerns
  • Slowing Global Growth
  • Silly market participants

After a record breaking negative start to the year ….all is better now…?

Small Company US Stocks Storm Back

The following chart of the Russell 2000 (Small US Company Stocks) is a show of fantastic resilience….


From top to bottom, that was a 28% drop… heck lets call it a 30% correction .. most of which has been recovered…. Wonder if this steep of a drop has occurred before without a clear crisis or recession ? Hey Donald the Brain… Can you let us know ?

Things getting better … “Smart Market“… or things no different… just a “Silly Market” ? Time will tell…



Ok, so truth be known, football season has already started. A collegiate upset weekend occurred last weekend and the NFL first Thursday night game was last night…

Good Luck to all… be careful when traveling near working venues…. Enjoy the games !

Talk to you next week !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


Janet Speaks … Markets Roar

Yesterday afternoon, Janet Yellen, current Federal Reserve President (FOMC) gave a talk during lunch at the Economic Club of New York.

Yellen Lets the Dogs Out

In the simplest terms, she told capital markets she would be slower in moving rates higher.

Break In – Donald is doing a bit of research now that we may all find interesting … How many times and when has the FOMC raised in an presidential election year?

Back to the speech:

Guess when the transcript of the speech was released?

Here are the big boys – S&P 500

3-29-16 S&P 1 minute

Here are the little brothers – Small Cap Stocks – Russell 2000

3-29-16 Russell 2000 1 minute

So near the end of such a volatile quarter, we suspect many may have been caught off guard…. Allocation and never going “All in or All out” is our friend … Once again !

Newsletter is in the works…and has a great chart talking of market levels…that may need to be updated after Janet let the dog’s out!

Have a Great Wednesday!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


Stumbling and Bumbling into the end of the month and quarter

After almost five years of unabated levitation in capital markets, a few chinks are starting to show in the capital market armor.

Why the Weakness ?

Under the belly it has been much weaker, this recent Bloomberg article stated almost 50% of stocks on the NASDAQ are already in a correction. Note in the following chart how small stocks are not following their big capitalization brother to new highs.

Russell 2000 (Small Stock Index) V S&P 500

R2k V SP 500 9-26-14

Does this mean the correction we have long been waiting for is here ?

Maybe, but as we mentioned in this middle of the month post, the coming quarter is seasonally the best.

Irony would be after five years of near unstoppable gains the correction finally begins in historic “Best” time of the year!

Have a Great Day!
John A. Kvale CFA, CFP
8222 Douglas Ave # 590
Dallas, TX 75225



The Trend is Your Friend…….(Until it’s Not)

Looks like this will be a week of sayings (i.e. earlier Elephants dancing)…so we are running with it. A very popular saying that you may have heard of is also “The Trend is Your Friend

On Wall Street this old saying is used frequently and while we certainly give it credence, heck we are about to show an example of it, we liken it more to greater fool philosophy (a greater fool will always buy it higher) than actual meaningful investment.

Here is a trend to behold: The Russell 2000, A Small Company Index


This is an almost 7% move since 12-31-12. We feel certain we are not going to have an annualized return of 96% (7% times 12 months.)

This sure looks great, and without hardly a pause. Unfortunately it just does not work this way…at least permanently.

We are most interested with what changes this most recent trend, not IF it will change (It Will!)

For now, “The Trend is Our Friend” UNTIL IT IS NOT!

Have a great day…not trying to be negative, just keep the perspective.


PS Friday brings another fun saying that will explain why it’s not a good idea to go “All In”

8222 Douglas Ave # 590
Dallas, TX 75225