Category

Commodity ETFs

Profit Shortage + Economic Weakness + Stimulus Removal = Less Risk Taking

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

Healthy bull market uptrends tend to feature similar risk-taking characteristics. Specifically, market-based participants will invest in a wide range of stock sectors (e.g., industrials, telecom, health care, energy, etc.) and asset types (e.g., large, small, foreign, preferreds, REITs, high yield corporate, convertibles, cross-over corporate bonds, etc.). There is little reason to discriminate because across-the-board risk leads to impressive returns. Late-stage bull markets are different. Fewer and fewer individual stocks succeed; fewer and fewer asset types gain ground. There is more…

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Do Historical Comparisons Matter? Strong Similarities Between 1937 And 2015

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

The case for the continuation of the U.S. bull market heavily rests on the shoulders of steady economic growth and low interest rates (on an absolute basis). Many believe that, as long as these circumstances exist, stocks will provide venerable results. However, market participants might want to consider a similar period in history – a time span when the 10-year treasury offered paltry yields, gross domestic product (GDP) grew at a reasonable clip and the Federal Reserve tightened monetary policy….

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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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Why Stocks Are Getting Riskier By The Day

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, International ETFs, Materials ETFs, Retail ETFs, US Markets and ETFs | No Comments

The central bank of the United States (a.k.a. the Federal Reserve) may hike its overnight lending rate in December. Committee members are also discussing plans to phase out the reinvestment of principal on balance sheet securities. Translation? Borrowing costs are set to move higher. The Fed is tightening for the first time in nearly a decade. In so doing, it is implicitly signaling faith in the U.S. economy’s ability to accelerate. The question investors might want to ask is whether…

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Asset Class Update: Is Diversification Still A Free Lunch?

By | Biotechnology ETFs, Bond ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Frontier Market ETFs, Global ETFs, Industrial ETFs, International ETFs, Internet ETFs, Large Cap ETFs, Mid Cap ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

According to Barry Ritholtz of Ritholtz Wealth Management, a frequent contributor to CNBC as well as Bloomberg, “the beauty of diversification is that it’s about as close as you can get to a free lunch in investing.” Since 2011, however, investors who diversified in stocks outside of the U.S. and who diversified across other asset types (e.g., commodities, currencies, gold, pipeline partnerships, etc.) have consistently underperformed the plain vanilla approach of owning the S&P 500 SPDR Trust (SPY) alongside a modest…

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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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Our Current Asset Allocation For Moderate Growth and Income Clients

By | Biotechnology ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

There were few investment professionals who believed in exchange-traded funds (ETFs) back in 1993. In fact, you could count the early adopters on your keyboard-using fingers. For example, my friend and money manager Tom Lydon used ETFs before he created ETF Trends. Dave Fry gathered a following at ETF Digest. And “yours truly?” I regularly discussed the benefits of  “SPY” and “QQQ” on financial talk radio across 70 or more affiliates around the nation. In the 90s, ETF that tracked popular…

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Resilient Consumer? Not During The Manufacturing Retreat and Corporate Revenue Recession

By | Biotechnology ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Large Cap ETFs, Small Cap ETFs, US Markets and ETFs | No Comments

Concerned investors started punishing foreign stocks and emerging market equities in May. The primary reason? Many feared the adverse effects of declining economic growth around the globe as well as the related declines in world trade. By June, risk-averse investors began selling U.S. high yield bonds as well as U.S. small cap assets. A significant shift away from lower quality debt issuers troubled yield seekers, particularly in the energy arena. Meanwhile, the overvaluation of smaller companies in the iShares Russell…

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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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