Stocks? Throw The Book At Them!

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Net worth used to be a simple concept. Add up assets. Subtract liabilities. And celebrate (or mourn) the tangible book value of the company. It is not so simple anymore. In a service-oriented economy, the value of a corporation partially depends on several intangibles. How influential is the company’s brand? What about the impact of the personality of one or two key individuals? Nevertheless, the increasing importance of intangibles should not diminish the relevance of tangible net worth. Tangible book…

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Are Investors In U.S. Stocks Turning A Blind Eye To Contagion Risks Abroad?

By | Asia ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Frontier Market ETFs, Global ETFs, Popular Posts, Special Sectors ETFs, US Markets and ETFs | No Comments

Things look pretty darn good for the U.S. economy. Unemployment rates are low, inflation-adjusted borrowing costs are practically zero, and corporate profit margins sit at record highs. U.S. consumers have taken notice. The recently released Conference Board reading for consumer confidence reached 133.4. We have not seen a data point like that since the year 2000. Ironically enough, an exceptionally happy consumer is rarely beneficial for the investment markets. Take a look at the forward returns for the S&P 500…

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When Will S&P 500 Valuations Matter Again?

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, US Markets and ETFs | No Comments

In the private markets, buyers and sellers care a great deal about valuation.  For example, a financial advisory practice might fetch between 1 percent and 2 percent of assets under management. Or it might go for 2.3 times trailing 12 months’ gross revenues. Higher or lower valuations depend largely on things like key personnel, average account size, client retention, economies of scale and the growth rate. The critical importance of valuation also comes to light on the popular television show,…

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Should You Celebrate or ‘Fade’ The Longest Bull Market In History?

By | Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

The mainstream financial media love to tell you, “Bull markets don’t die of old age.” True enough. Indeed, the current uptrend remains a shining example of cyclical durability and persistence. For many, then, the fact that the stock bull has set an all-time record in length is cause for celebration. 3,453 days and counting. If you choose to listen, Kool & The Gang will even let you know where the party is at. It is worth noting that the S&P 500 needs to…

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3 Reasons Stocks Are Straining To Get Over the Hump

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

The S&P 500 – a broad market barometer for U.S. stocks – last hit a record high six-and-a-half months ago. Why has the stock market failed to close above its previous peak set back on January 26? The short answer is that not everyone is buying the media-hyped “Goldilocks” scenario. Granted, the country is enjoying the near-term benefits associated with tax cut stimulus and relatively low interest rates. Employment trends have been favorable. Consumers are willingly spending both the money…

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