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Actively Managed ETFs

Many Catalysts Can Wreck The QE-Inspired Bubble

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Does the stock market care about the after-tax profits generated by corporations? Not in the era of Federal Reserve QE (a.k.a. “quantitative easing,” “balance sheet expansion” or “electronic money printing.”) Over the last five years, stock prices for the S&P 500 have gained more than 50%. Meanwhile, after-tax profits at non-financial companies have actually declined in the period. Is that sustainable? Credit the Fed for its QE-inspired wealth effect. Some believe that the Fed stopped QE when they halted purchases with the…

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Here’s Why You Need To Hedge Your Stock Investments

By | Actively Managed ETFs, Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Large Cap ETFs, Popular Posts, US Markets and ETFs | No Comments

Stock market records have a way of enthralling everyone. However, the stock market is not currently reflecting the economy or the corporate backdrop. For example, one may hear that the job market is strong. Yet job growth and job openings are both fading. One may be told that the consumer is spending. On the other hand, year-over-year retail sales (2.88%) are well below last year (4.58%). In a similar vein, The Bloomberg Consumer Comfort Index fell to a nine-month low…

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3 Ways To Invest In Stocks (Even When The Ride Is Coming To An End)

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

The U.S. economy is appallingly dependent on the “wealth effect.” And the U.S. Federal Reserve knows it. Just how “easy” is the Fed’s monetary policy? The real Fed Funds Rate (FFR) is at -0.8% right now. The last time the inflation-adjusted FFR was down at -0.8% had been 8-9 months into the Great Recession (10/2008). Before that, the country had been 8-9 months into the 2001 recession (12/2001). Pushing the cost of capital to insanely cheap places used to be…

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Bonds Say To Stocks, “We’re Just Not That Into You.”

By | Actively Managed ETFs, Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Five years ago, several European countries (e.g., Portugal, Italy, Greece, etc.) appeared as if they might default on their sovereign debt obligations. Gold prices spiked. The Japanese yen soared. U.S. Treasury bond yields plummeted. And the S&P 500 fell nearly 20% before globally coordinated central bank activity resuscitated investor appetite for U.S stocks. Today, Europe appears to be on the verge of another euro-zone crisis. This time, the United Kingdom’s decision to leave the European Union has threatened to destabilize the…

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Risk Asset Update: Vast Majority Agonize Since The S&P 500’s August Lows

By | Actively Managed ETFs, Asia ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Natural Resources ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Weren’t lower oil prices supposed to act like a “tax cut” for U.S. households? If families spend less at the gas pump, then they will spend more of their dollars at the mall. At least that’s what mainstream media cheerleaders like CNBC’s Jim Cramer have insisted throughout the year. In contrast, the S&P SPDR Retail Index (XRT) demonstrates that investors are not particularly impressed by the prospects of American retailers. The current price for the exchange-traded fund tracker is lower…

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13 Economic Charts That Wall Street Doesn’t Want You To See

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, ETF Philosophy, Global ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

About a week ago, I spent an afternoon playing basketball and drinking beer with a best friend from my high school days. It was the second get-together in five months. How is that unusual? Prior to the first go-around this past May, I had not seen Anthony in more than 30 years. I asked Anthony if he remembered the night that we knocked over the practice field’s goal posts. (Give me a bit of “labor slack” here… we were teenagers…

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50% Recession Possibility Calls For A ‘Higher-Than-Usual’ Allocation To Non-Stock ETFs

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Short ETFs, US Markets and ETFs | No Comments

Other than permanently bearish writers and investors, few address the possibility of the U.S. falling into a recession. Many conclude that the Federal Reserve’s ultra-low rate policy completely altered the landscape such that the idea of a business cycle no longer exists. Others merely ignore warning signs until, unfortunately for them, the opportunity to reduce investment risk has passed them by. Until recently, I have only discussed the possibility of a recession in the context of a Fed policy mistake….

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Why “TBT” Doesn’t Have A Prayer

By | Actively Managed ETFs, Bond ETFs, ETF Philosophy, Leveraged ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

When Jack Nicholson won his third Best Actor award in 1997’s “As Good As It Gets,” he may have chuckled at the knowledge that he’d never have it so good again. Who wins four Academy Awards for Best Actor in a motion picture? Nobody. (Yes, I checked… and Katherine Hepburn won four Oscars for Best Actress.) The problem with reaching a pinnacle, of course, is that your options are limited. You might be able to hang out on top of…

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Relative Value The Reason To Keep Buying Munis and Long Bond ETFs

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

Since the Reserve Bank of New Zealand first formerly targeted inflation rates roughly 25 years ago, other central banks around the globe have followed suit; that is, many banks have been setting medium-term rates that prices should rise on an annualized basis, and then presenting those percentages publicly. Two-and-a-half years back, the U.S. Federal Reserve, placed that percentage at 2%. Yet the U.S. has failed to hit the bulls-eye. Trillions in electronically created dollars over 30 some-odd months, coupled with…

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The Best ETFs For Positioning Your Portfolio In 2015

By | Actively Managed ETFs, Asia ETFs, Bond ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Featured Posts, Global ETFs, International ETFs, Large Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

At the beginning of each New Year, Seeking Alpha, the popular financial web portal, interviews Gary Gordon for its Positioning for 2015 series. Here is a transcript of that exchange. SA’s Carolyn Pairitz (CP): How would your clients describe your investing style/philosophy? Gary Gordon (GG): My clients would recite my mantra… There are four possible investing outcomes (i.e., big gain, small gain, small loss, big loss) and three of them are good. Successful investing is about controlling the investing outcome so…

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