Category

Defense & Aerospace ETFs

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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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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Singer Meghan Trainor Knows, It’s All About That Central Bank Stimulus

By | Asia ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Real Estate ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs | No Comments

Nearly one-third of S&P 500 corporations have reported earnings and revenue from the third quarter. With 147 companies chiming in, profits are down -0.6% and sales are down -2.7% from a year earlier. One might have thought that several quarters of contraction in earnings and revenue (a.k.a. an “earnings recession” and a “revenue recession”) might have weakened stocks. After all, if robust sales and hearty profits are the primary drivers behind price appreciation for companies in the Dow and the…

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Three Other Ways To Play Defense

By | Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, US Markets and ETFs | No Comments

The broader stock market (as measured by the NYSE Composite) may be making marginal progress. A 2.5% appreciation in price over the last nine months is mildly positive. Similarly, higher lows are typically indicative of ongoing strength. It would be reasonable, however, to discuss whether the risk of participation is worthy of the potential reward. Retail sales in the warm weather month of April were flat; clearly, consumers have not been spending their windfalls from the gasoline pump since 2015…

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Reduce Your Allocation To Small Cap U.S. Stock ETFs

By | Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Small Cap ETFs, Technology ETFs, Utilities ETFs | No Comments

The Wall Street media may celebrate the 35% intra-day jump in Alibaba shares. They may tout the record highs in the Dow and the S&P 500. However, they are missing the boat on both the economy as well as key stock market divergences. Let us start with the economic environment. The all-important Conference Board’s Leading Indicators Index (LEI) rose a meager 0.2%. That is indicative of an economy that has little chance of repeating its 4% 2nd quarter expansion. Even…

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U.S. Stock ETFs Completely Decouple From U.S. Economic Concerns

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Can we really attribute all of the horrendously weak economic data to icy pavements and polar vortexes? The Institute of Supply Management (ISM) services sector report for February recorded its weakest data point in four years (51.6), posting a percentage decline that is the second worst ever. In the same report, a sub-index on jobs showed that services sector employment actually contracted. Meanwhile, after-tax personal income for consumers dropped 2.7% from one year earlier — a decline that rivals the…

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3 Lesser-Known ETFs For An Escalating Ukraine Conflict

By | Alt Energy ETFs, Bond ETFs, Commodity ETFs, Defense & Aerospace ETFs, ETF Philosophy, US Markets and ETFs, Utilities ETFs | No Comments

Russia’s “beef” with Ukraine is leading to a variety of near-term repercussions. The turmoil is producing interest in traditional safer-haven assets like the Japanese yen, U.S. Treasuries as well as gold. It should be noted, however, that these perceived safer holdings have been gaining in price since the year began. Russia’s recent military maneuvering has merely intensified a desire for protection. Yet not all investments that currently show relative strength fit as neatly into the “risk-off” category. There are a number…

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Lower Risk ETFs On The New 52-Week High List

By | Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, International ETFs, Internet ETFs, Real Estate ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Does anyone really think that the monstrous erosion in homebuilder sentiment and the disappearance of mortgage applications are due to the nasty weather? Perhaps one can attribute the sad state of retailer earnings to cold spells and polar vortexes. One can even consider excusing two months of abysmal payroll data to rain, sleet and snow. On the other hand, if weather had been the main issue for home construction companies, sentiment would have risen on the promise of a sun-filled…

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3 Ways An ETF Investor Can Approach The Increasingly Erratic Stock Market

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Special Sectors ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

If an economic data point came in much weaker than expected last year, the U.S. Federal Reserve’s monetary stimulus offered reason enough to buy stocks. Bad news served as good news. At the same time, when a data point exceeded expectations, the resilience of the American economy also inspired equity purchases. Good news served as good news. In fact, any news prompted additional risk taking in 2013. Flat corporate revenue? It will improve. Fed exit from quantitative easing (QE)? They…

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Develop Your “They May Never Completely Quit QE” Buy List

By | Biotechnology ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Emerging market ETFs are pulling back sharply from gains that they had achieved in recent months. The countries with the largest drops in the past few days are those that are most dependent on foreign capital to finance their super-sized deficits. In essence, speculation that some of the world’s central banks may pare back the printing of money is adversely affecting funds like WisdomTree India Earnings (EPI) and iShares MSCI South Africa (EZA). The broader-based Vanguard Emerging Markets (VWO) is…

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