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Asia ETFs

Stock Investors Bask In The Economic Slowdown’s Glow

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

By July of 2012, a wide range of indicators suggested that the U.S. economy was flirting with trouble. Job growth was decelerating. Business investment was deteriorating. Meanwhile, manufacturing via the ISM Manufacturing Survey (PMI) was flirting with contraction. Up until that moment in time, the Federal Reserve had already left rates at zero percent for three-and-a-half years. What’s more, they had already created trillions of electronic dollars to acquire government debts and push borrowing costs to unfathomable lows to ward…

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Why The S&P 500 Is Likely To Revisit The Correction Lows Near 1870

By | Asia ETFs, Biotechnology ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, US Markets and ETFs | No Comments

In Selling The Drama Or Buying The Rally (8/27), I delineated the way in which 10%-plus price corrections had unfolded under similar circumstances in history (e.g., 1998, 2010, 2011, etc.). Specifically, when the prospects for the global economy are deteriorating, U.S. stock benchmarks typically reclaim about one-half of their losses on “hope rallies.” Afterwards, they retest their lows. The most recent example of the price movement phenomenon is the euro-zone crisis. In late July/early August of 2011, the S&P 500 SPDR Trust…

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The Stock Market’s Best Shot? A Fed Promise To Move Slower Than A Three-Toed Sloth

By | Asia ETFs, Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Mid Cap ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Consumers, as opposed to manufacturers, represent two-thirds of the U.S. economy. Indeed, Americans love to splurge. We buy sneakers, iPhones, home furnishings, real estate, cars, jewelry, concert tickets, and meals at our favorite restaurants. We even buy chew toys for our pets. Many of us, however, do not have enough cash saved up to acquire the things that we want when we want them. So we borrow. We satisfy our cravings through instruments of debt – credit cards, mortgages, “refis,”…

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Is A Recession Necessary For The S&P 500 To Fall 20% From All-Time Highs?

By | Asia ETFs, Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Materials ETFs, Natural Resources ETFs, US Markets and ETFs | No Comments

Is it possible for a bear market to occur when the U.S. economy is expanding? Certainly. In fact, most bear markets are already well on their way to becoming 20% price declines long before a recession is formerly identified. Consider the most recent bearish retreat (10/07 – 3/09). The National Bureau of Economic Research (NBER) officially declared on 12/1/08 that the U.S. recession had started in December of 2007 – a declaration that came nearly one year after the economic…

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Are You Selling The Drama Or Buying The Rally?

By | Asia ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Large Cap ETFs, Mid Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Mini-crash for equities ignites panic selling? Check. The commodity super-slump, ever-widening credit spreads, corporate sales recession and rapid deterioration in market internals throughout June and July assured a reassessment of risk. The brutality and swiftness of that risk reassessment was less destructive for those who respected the dozens of warning signs and acted proactively. Extremely oversold conditions and short covering spark panic buying? Check. As I explained on Tuesday after six days of relentless price depreciation, the S&P 500 had only…

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Do Not Blame China For Your Missed Opportunity To Reduce Risk

By | Asia ETFs, Bond ETFs, China ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, International ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Some are crediting me with calling the 6-day mini-crash. On the contrary. When I wrote “15 Warning Signs Of A Market Top” on August 18, the intent was to discuss micro-economic (corporate), macro-economic, fundamental and technical reasons for reducing one’s overall allocation to riskier assets. I did not predict the epic fall from grace for the S&P 500 SPDR Trust (SPY). Based on a Relative Strength Index (RSI) level below 17 – based on the fact that we are approaching…

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A Market Top? 15 Warning Signs

By | Asia ETFs, Bond ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Stocks are tumbling in Russia, Brazil, Chile, South Africa, Australia and Canada due to economic weakness in China. Meanwhile, the Vanguard Europe ETF (VGK) remains roughly 5.5% off of its May high, as the feel-good effect of $1.3 trillion in European Central Bank stimulus subsides. In truth, risk assets from across the spectrum are fading. Exchange-traded vehicles as diverse as iShares High Yield Corporate Bond (HYG), iShares Russell 2000 (IWM), iPath Commodity (DJP) and Vanguard FTSE Emerging Markets (VWO) are all…

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There’s Still Time To Lower Your Exposure To Riskier ETFs

By | Asia ETFs, Bond ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Industrial ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

A fair number of commenters, callers and perma-bulls were relatively tough on me in May when I suggested a strategic decision to raise cash levels. They were even tougher on me when I mentioned the possibility of picking up safer havens like intermediate treasuries via iShares 7-10 Year Treasury Bond (IEF) and intermediate-to-long duration municipal bonds via BlackRock Muni Assets Fund (MUA). There’s no doubt about it… I was early on the call. Yet the idea behind raising cash as well…

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5 Reasons To Lower Your Allocation To Riskier Assets

By | Asia ETFs, China ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

For months, I have been discussing the likely implications of deteriorating market breadth. For instance, fewer and fewer components are holding up the Dow, the S&P 500 and the NASDAQ. Only a small number of industry sectors are keeping the popular benchmarks in the plus column. Similarly, half of the stocks in the S&P 500 currently demonstrate bearish downtrends. And declining stock issues are significantly pressuring advancing stock issues for the first time since July of 2011. Historically, when a handful…

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Remember July 2011? The Stock Market’s Advance-Decline (A/D) Line Remembers

By | Asia ETFs, Commodity ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, Large Cap ETFs, Retail ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

According to Bloomberg data, the modest year-to-date increase in the S&P 500 is attributable to health care and retail alone. Worse yet, the two industry segments trade at a 20% premium to the market at large. Paying a premium for growth is one thing. Chasing a handful of momentum stocks is another. Brokerage firm Jones Trading sharpened the knife even further, noting that six corporations account for more than the entirety of the meager 2015 gains in the S&P 500. Those…

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