Three Reasons Why The ‘FANG’ Phenomenon Will End Badly

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

Those who do not wish to draw any parallels between today’s stock market and the 1999-2000 tech stock bubble typically claim that “All of those turn-of-the-century dot-coms weren’t making any money. Today’s 2017 superstars — Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google/Alphabet (GOOG) — make money hand over fist!” The problem with this rationalization is threefold. First, the 1999-2000 tech balloon was not an online-only phenomenon. The ‘Four Horsemen’ that controlled more than half of the market capitalization for the…

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Is Warren Buffett Leading Investors Or Misleading Investors?

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

There are no shortage of Warren Buffett quotes on successful investing. The one that never fails to reassure me? “Be fearful when others are greedy and greedy when others are fearful.” If one of the greatest investors on the planet strongly suggests that one become risk averse when the herd is throwing caution at the proverbial wind, it makes sense to identify the extent of ill-advised risk taking. For example, the CBOE S&P 500 VIX Volatility index (a.k.a “fear gauge”) closed out September…

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If Familiarity Breeds Contempt, What Do Debt And Complacency Breed?

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

Back in 1999, low inflation and fabulous headline unemployment (<5%) warranted a Federal Reserve overnight lending rate of 5.0%. Today, low inflation and desirable headline unemployment (<5%) come with $3.75 trillion in electronic money credits still on the central bank’s balance sheet and a Fed Funds Rate of a mere 1.25%. That is 375 basis points lower than it was with similar economic fundamentals less than two decades ago, not to mention a whole lot of “electronic money printing” since the…

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What Will Eventually Wobble The Stock Market?

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

I asked my Vice President at Pacific Park Financial, Inc. if he thought that anything might wobble the stock market. Rob said, “Extra-terrestrials could invade the planet. That MIGHT send the Dow down 0.4% for a few hours in the middle of the day.” “I disagree,” I counter-punched. “If outer space beings visit Earth, they will share secrets on how to travel faster than the speed of light in exchange for shares of Amazon.” “They’ll want bitcoin,” Rob said matter-of-factly….

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The Years 2000 And 2017: There’s A Whole Lot Of Rhyming Going On

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

This week, CNBC’s Kelly Evans interviewed one of the most well-respected billionaire hedge fund managers in history, Julian Robertson. The co-founder of Tiger Management discussed global central bank collusion to depress interest rates and the subsequent creation of a bubble. “A bubble in the stock market?” the journalist clarified. Robertson replied, “Yes, ma’am.” Billionaires from the investing world do not sport perfect track records. Nevertheless, when the .0001% speak, investors should take notice. Within the past few months, the list of billionaire…

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