Category

Consumer ETFs

The Attractiveness Of A Defensive Stock Strategy

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

In January of 2018, the U.S. economy surprised to the upside at nearly every turn. Since that time, however, the fundamentals have slowly deteriorated. Consider the Citi Economic Surprise Index (ESI). The popular measure compares actual data against estimates. Remarkably, the indicator has been trending downward for 15 months. Perhaps ironically, the S&P 500 now trades at higher levels than when the fundamental backdrop had been much stronger. For many stock investors, then, weak fundamentals are synonymous with the exciting…

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Why Do Bond Investors Doubt The Stock Market Recovery?

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Global ETFs, Health ETFs, Popular Posts, Special Sectors ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Is a recession in the U.S. around the bend? Few economists are predicting one. On the other hand, longer-term Treasury bond yields continue to slide below shorter-term maturities. Bond investors are gobbling up long-term government debt because they believe that the economy will slow dramatically. Normally, the longer an investor allows the U.S. government to keep capital, the more that an investor would expect in annual interest from Uncle Sam. That is what transpires in a healthy economy. This past…

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Fooling Investors For A Third Time

By | Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, US Markets and ETFs | No Comments

After being fooled by dot-com mania at the turn of the century, many stock investors vowed that they would not make the same mistake twice. So they turned to “can’t-lose” real estate. Of course, the housing bubble made fools out of many of the very same fortune-seekers. Today, circumstances are more precarious. It is not stocks or real estate. It is stocks AND real estate. In fact, it is stocks, bonds and real estate – the assets that constitute record household net worth. The…

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Let’s Not Kid Ourselves… The Market Will Remain Under Pressure

By | China ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Special Sectors ETFs, US Markets and ETFs | No Comments

High profile market watchers have pointed out that there have only been four times in the last nine decades when back-to-back calendar year stock declines occurred. The years? 1929-1932, 1939-1941, 1973-1974, and 2000-2002. This could be encouraging news for stock enthusiasts were it not for the fact that 1929-1932 and 2000-2002 are included in the list. Valuation levels today have some of the same features that they did leading into the Great Depression and heading into the turn-of-the-century tech bubble….

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How Long Before Powell Throws In The Rest Of The Towel?

By | Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Real Estate ETFs, Semiconductor ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

It was only a few days ago when the stock market celebrated a Trump-Xi tariff delay. And it was only a few days before that when Federal Reserve Chairman Powell flip-flopped on the extent of rate hiking yet to come. Both of the above-mentioned actualities sent stocks and risk assets soaring higher. And both were expected to serve as tailwinds for a phenomenal December rally. So how did the Dow lose nearly 1600 points in two days, then recover roughly…

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Should You Buy the S&P 500 Dip Or Sell the S&P 500 Rips?

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

Until recently, the U.S. stock market had been taking Federal Reserve rate hikes and quantitative tightening (QT) in stride. The investment community had come to believe that corporate tax reform would compensate for the gradual removal of ultra-easy interest rate stimulus. Indeed, up through October, rising interest rates had been hurting bonds far more stocks. Corporate credit assets of all sizes and shapes have logged total return losses year-to-date. The last time this happened? 2008. Lately, however, sellers have been overwhelming…

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So Goes Apple, So Goes The U.S. Market

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, Global ETFs, International ETFs, Large Cap ETFs, Semiconductor ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Apple (AAPL) has been one of my largest individual holdings for the bulk of the post-recession stock bull. I believed in it when it was trading for one-tenth of its current value back in 2009. I even believed in it when it plummeted 40% in the winter of 2012-2013. Back then, though, Apple’s troubles did not adversely affect the broader equity rally. On the contrary. The S&P 500 exhibited all of the signs of a powerful uptrend. More recently, Apple…

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Why The Economic Slowdown Will Rattle Stock Investors

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Materials ETFs, Real Estate ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

The economy, as measured by gross domestic product (GDP), grew at 4.2% in the second quarter. It slowed to 3.5% in the third quarter. Meanwhile, Q4 projections have been coming in closer to 2.9%. An optimistic “take” would be to exclaim that the 2% pace that has been the hallmark of the current expansion is now in the rear-view mirror. For 2018 and beyond, we have kicked it into a higher gear (3%) due to tax cuts and regulation curtailment. A…

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Are Investors In U.S. Stocks Turning A Blind Eye To Contagion Risks Abroad?

By | Asia ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Frontier Market ETFs, Global ETFs, Popular Posts, Special Sectors ETFs, US Markets and ETFs | No Comments

Things look pretty darn good for the U.S. economy. Unemployment rates are low, inflation-adjusted borrowing costs are practically zero, and corporate profit margins sit at record highs. U.S. consumers have taken notice. The recently released Conference Board reading for consumer confidence reached 133.4. We have not seen a data point like that since the year 2000. Ironically enough, an exceptionally happy consumer is rarely beneficial for the investment markets. Take a look at the forward returns for the S&P 500…

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Should You Celebrate or ‘Fade’ The Longest Bull Market In History?

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

The mainstream financial media love to tell you, “Bull markets don’t die of old age.” True enough. Indeed, the current uptrend remains a shining example of cyclical durability and persistence. For many, then, the fact that the stock bull has set an all-time record in length is cause for celebration. 3,453 days and counting. If you choose to listen, Kool & The Gang will even let you know where the party is at. It is worth noting that the S&P 500 needs to…

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