For several years the stock market has move up unfazed by fundamental and technical indicator warnings that have clearly indicated that too many (but not all) stocks were dangerously overvalued. Historically, along the way up, moderate if somewhat harsh corrections followed by returns up have been the normal market occurrence and would have avoided high risk overvaluations that we have seen before brutal bear markets such as those of 2001 and 2007. We have seen it presently in too many trader and hedge fund favorites such as the high volume “fang stocks” and others that favor institutional investors but not the retail investors. A serious problem with many major full service American brokerages is that they no longer can earn the same commission revenue as in the past. The fact is that they have been bludgeoned by the discount brokerages whose commissions are mere fractions of the full service brokers’ commission levels. Today full service brokerages can no longer afford to cover companies on a comprehensive research basis. Thus, they focus on, over-promote and hype a very limited percentage of stocks. That is a major obstacle to investment success for the retail investing public and many institutional investors as well. They are guided by inaccurate inept analysts into their over-touted, over promoted and overvalued stocks rather than the many overlooked and undervalued stocks. Yet, in Canada and the U.S. there are numerous stocks that are incredibly undervalued such as the gold industry companies and other commodities related stocks. Hype?… Just […]