Category

China ETFs

Why The U.S. Stock Market Never Completely Recovered

By | Biotechnology ETFs, Bond ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Natural Resources ETFs, Retail ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Some things go unnoticed. For example, the S&P 500 rallied 13% off its closing lows (1867) set in late August. Lost in the shuffle? The popular benchmark has yet to revisit its closing highs (2130) registered back in May. In essence, the corrective activity that began in the springtime as a function of a faltering global economy, overvalued equities and weakening market internals has yet to run its course. What’s more, these factors that led to the August-September sell-off in…

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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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This Is What Happens When The Fed Tries To Leave ‘QE’

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

Back on October 29, 2014, the Federal Reserve ended its largest round of quantitative easing (QE3/QE4). The unconventional policy of buying market-based assets with electronically created credits (dollars) first began in late November of 2008. Since that time, $3.75 trillion in stimulus forced interest rates downward and sent stock prices soaring. The S&P 500 moved from 857.39 when QE1 was first announced to 1982.30 when QE3/QE4 ran its course for an approximate gain of 131%. Equally intriguing, when the Fed backed…

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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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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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