How Will You Keep the Stock Wealth That You Created?

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

Bond yields have been collapsing clear across the world. And if history is any guide, the rapid decline is a function of undeniable economic weakness. Consider the correlation between bond yields and time-tested measures like the Institute for Supply Management’s PMI. The 10-year U.S. Treasury yield tends to follow in the indicator’s footsteps. As the chart shows, waning economic growth and falling bond yields occurred in 2012 and 2016. During those periods, corporate earnings struggled immensely. What about today? Not…

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The Last Ones To Add More Stock Risk Will Have Rotten Nest Eggs

By | Asia ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

U.S. large company stocks may be celebrating the anticipation of rate cuts. After all, the S&P 500 has been toying with record highs. Yet a broader view demonstrates that the asset class is struggling more than advertised. For example, diversified investors might be aware of world index funds that exclude the U.S. In particular, the iShares MSCI ACWI ex U.S. (ACWX) sits in correction territory, nearly 10% below its January 2018 peak. What about the Russell 2000 – an index that…

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Stock Market Rally: You May Be Right, I May Be Crazy

By | Asia ETFs, Bond ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Frontier Market ETFs, Global ETFs, International ETFs, Large Cap ETFs, Latin America ETFs, Mid Cap ETFs, Middle East ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

According to Jay Powell, Chairman of the Federal Reserve, the U.S. economy is performing well. It is difficult to take the assessment seriously. After all, as recently as mid-December, the Fed intended to raise interest rates three to four times in 2019. By January, central bank committee members wiped away the possibility of any rate hikes during the year. And now? The Fed is preparing the world for rate cuts as soon as July. “We will act as needed including promptly if that’s…

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July Rate Cut? Wait For the Fed’s Complete Capitulation To Get Aggressive

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

Financial markets now anticipate that the Federal Reserve will begin ratcheting down rates from the 2.25%-2.50% range in July. Remarkably, the “de facto stimulus” associated with the Fed flip from rate raising to rate neutrality only lasted for six months. Reasonable criticism of the Fed’s “way-too-low-for-way-too-long” rate policies notwithstanding, weak economic data may support easing. Imports (-2.7%) as well as exports (-4.2%) contracted. And global manufacturing is the weakest that it has been since 2012. In a similar vein, corporate…

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Buy The Dip In Long-Term Treasury Bonds To Hedge Stocks?

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

The 10-year Treasury yield pays 15 basis points LESS than the 3-month Treasury yield. That’s rather nutty when you think about it. Even nuttier? 30-year sovereign yields across the globe are LOWER than the Federal Funds Rate (FFR) of 2.38%. Why are bond market investors demanding the safety of lower-yielding, longer-term, sovereign debt? Why do many crave it more than higher-yielding, shorter-term instruments? Investors anticipate that the Federal Reserve will need to slash its overnight lending rate in attempts to stimulate…

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