Category

China ETFs

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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Canaries In The Investment Mine Have Stopped Serenading

By | Bond ETFs, China ETFs, Commodity ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, International ETFs, Latin America ETFs, Small Cap ETFs, US Markets and ETFs | No Comments

Eleven months ago, I talked about four classic canaries in the investment mines: (1) commodities, (2) high yield bonds, (3) small-cap stocks, (4) emerging market stocks. I explained that when all four of those canaries stop singing, riskier ETFs usually break down. Indeed, in September of 2014, commodities were tanking, high-yield bonds were plunging, small-cap stocks were faltering and emerging market stocks were plummeting. The canaries were losing their voices. Not surprisingly, the broader U.S. markets eventually followed suit in…

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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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What’s So Bad About Kicking The Container Down The Road?

By | Bond ETFs, China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, US Markets and ETFs | No Comments

Every central banker and monetary authority understands economics. Each recognizes that debt-centric spending, interest rate repression and eye-popping additions to total government obligations will not sidestep inevitable defaults and/or worthless currencies in the future. So why has every influential central bank on the world stage – Federal Reserve, Bank of Japan, People’s Bank of China, Bank of England, European Central Bank – pursued policies that merely delay the moment of reckoning? Why does kicking the “catastrophe can” down the path…

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Allocating Assets When the Fed Talks Out Of Both Sides Of Its Mouth

By | Bond ETFs, China ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, International ETFs, US Markets and ETFs | No Comments

One year ago, each of the 17 members of the Federal Reserve provided an expectation of where the fed funds rate would be at the end of 2015. The average came in at 1.1%. That might have required four to five rate hikes this year alone. By March, the expected year-end rate dropped to 0.65%. Perhaps two or three rate increases, then? Nope. Here in mid-June, the average expectation for committee members for the end of the year now registers…

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China’s ‘Slowdown’ May Be Your Opportunity To Buy Low

By | Asia ETFs, China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, Europe ETFs, Frontier Market ETFs, International ETFs, Large Cap ETFs, US Markets and ETFs | No Comments

Chinese leaders already anticipate that the country’s economic expansion in 2015 will be its slowest in 25 years. The gross domestic product (GDP) projection? 7%. Analysts have ridiculed everything about the world’s 2nd largest economy from the nation’s extraordinary debt build-up to the modern-day ghost towns of empty apartment complexes. Ironically, these same critics barely flinch when the U.S. expansion logs an inexplicably impoverished 0.2% year-over-year. They blame weather patterns for U.S. stagnation, even though California, Texas and Florida experienced…

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The Debt-Driven Expansion Requires Tweaks To Your Portfolio

By | Bond ETFs, China ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Health ETFs, US Markets and ETFs | No Comments

The U.S. government spent $7.50 trillion above the country’s budget over the last six years to encourage economic growth as well as fulfill pre-existing obligations (e.g., defense/military, agriculture, Medicare/health, Social Security, education, transportation, interest on the federal debt, etc.). Yet the economy still only grew at annualized 2.1% in the period – a growth rate that is far lower than the expected average of 3.0%. Similarly, the U.S. Federal Reserve created electronic dollars in the neighborhood of $3.75 trillion, encouraging…

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Technical Breakouts For Popular ETFs On The World Stage

By | Asia ETFs, China ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Frontier Market ETFs, Global ETFs, International ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The current bull market for U.S. stocks is the fourth longest in history. Two others journeyed into a seventh year, while one other (1990s) enjoys the distinction as having traveled into an eighth year. Even if one subscribes to the idea that “bull markets never die of old age,” probability alone suggests that we are closer to the end than the beginning. Many market-watchers enjoy finishing the thought on what eventually kills a powerful bull run. “Excessive valuations,” some argue….

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U.S. Stocks and U.S. Bonds: What the Heck?

By | Asia ETFs, Bond ETFs, China ETFs, Consumer ETFs, Currency ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Most people believe that Tom Cruise became an international superstar with the release of the action drama, “Top Gun” back in 1986. However, I remember the actor from an earlier film, “Risky Business.” The popular motion picture capitalized on teenage angst and harebrained ways to make money. In the film itself, the main character, Joel Goodson, turns his family home into a house of ill-repute to finance the repairs of his father’s Porsche – a car that he had been…

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