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Dividend ETFs

Don’t Blame Minsky If Your Portfolio Value Crumbles

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

Remember when the financial markets believed that tax cuts, regulatory reform and infrastructure spending would rev up the economic growth engine? The dollar surged. Bonds cratered. And stocks broke out of a 22-month collective funk. Yet expectations that a “business-friendly” Trump will offset higher borrowing costs have faded considerably. Consider the flattening of the yield curve. The spread between shorter term 2-year Treasury yields and longer-term 10-year Treasury yields is back below a scant 1 percentage point. This is more indicative…

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Buy U.S. Stocks Today? Graham Thinks You’re Nuts

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Popular Posts, Short ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Would Warren Buffett’s mentor buy domestic stocks today? Probably not. The father of value investing, Benjamin Graham, would have trouble recommending a single U.S. company’s shares across thousands of possibilities. Need proof? In the fourteenth chapter of The Intelligent Investor, a classic that Mr. Buffett regarded as “…the best book on investing ever written,” Graham offered a seven-step test for stock selection. The criteria include: (1) adequate size with respect to revenue, (2) strong financial condition with respect to liquidity, (3) reasonable…

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It’s A Large-Cap Tech World After All

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | One Comment

Apple, Microsoft, Amazon, Facebook and Google (now Alphabet) account for roughly 13% of the S&P 500 SPDR Trust’s (SPY) price movement. The same 5 corporations? 42% of the NASDAQ 100’s (QQQ) price appreciation. The super-sized weighting of prominent tech companies in these benchmark ETFs has resulted in year-to-date gains of 7.1% and 16.6% respectively. Yet the rest of the market’s performance has been flat. Barely positive, in fact. Not sure? Take a look at the performance of small-cap and value-oriented…

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Bull Market’s Health Depends More On Congress Than Trump

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

In a bull market, many investors come to believe that risk is synonymous with reward. “You’ve got to be in it to win it” or “If you don’t take chances, your wallet will forever remain empty.” In a bear market, the truth about risk is revealed. Specifically, steep financial losses are neither rewarding nor easily recovered. The average descent? 30%. And the average time to recover? Approximately three-and-one-quarter years. So, if an average bearish downtrend occurred right now, the S&P…

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Does The Stock Investor Feel Lucky? “Well, Do Ya, Punk?”

By | 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

The broadest definition of a bear market? Stocks descend 20% (rounding up) on a closing-price basis without an intervening bull market (20%) rally. Since 1929, there have been 25 bears with an average top-to-bottom return of -35%. Some analysts prefer to exclude the Great Depression. (Should they?) Since World War II, the average bearish demise has been -30%. A quick perusal of the percentage losses reveals a curious truth. The last two bears? The “tech wreck” and the “financial collapse?”…

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Should Stock And Bond Investors Continue Their ‘Hop of Hope?’

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

Stock investors have made a “hop of hope” since the election of Donald J. Trump. Specifically, the new administration’s dedication to the repatriation of foreign profits, the lowering of corporate tax rates and the reduction of onerous regulations may create impressive wage growth as well as momentous economic growth. Keep in mind, year-over-year wage growth and annual GDP growth during the nearly eight years of recovery fell way short of pre-Great Recession growth rates. Wages have grown at a sub-par…

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Monster Stock Rally On A Clinton Victory? Don’t Bank On It

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, US Markets and ETFs | No Comments

The S&P 500 fell approximately 3% over the course of nine days on election angst. The FBI’s decision to close the books on the Clinton private server investigation propelled the popular index toward reclaiming two-thirds of those losses (2%) during Monday’s session; it continued gaining ground in early Tuesday trading. Will the relief rally be meaningful? Will it help send stocks surging upward through the inauguration of the next president by the third week of January? Probably not. For one thing, the…

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No Soup For You! Companies Will Slow Down Their Dividend Payouts And Stock Buybacks

By | Bond ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, US Markets and ETFs | No Comments

Public companies seldom distribute more to shareholders than what they earn in a given year. It is categorically uncommon for those corporations to pay out more in dividends and share buybacks than what they earn for two years in a row. Three years? That’s never happened. Take a look at the total payout ratio dating back to 1964. The ratio (dividends + buybacks/corporate earnings) surpassed 100% for two consecutive years as the U.S. dealt with the early ’90s economic downturn…

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Do Celebrated Fund Managers Know More About the Credit Balloon Than You Know?

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, US Markets and ETFs | No Comments

There was a time when hedge funds may have offered something unique in the way of performance. You may have been able to make a case for them alongside a mix of stocks and intermediate-term treasury bonds. Over the last three years, however, hedge funds have been downright abysmal. Consider the IQ Hedge Multi-Strategy Index ETF (QAI). It endeavors to replicate hedge fund performance across a variety of investment styles, including long/short equity, market neutral, fixed-income arbitrage, volatility and event-driven financial gain (e.g., “Brexit,”…

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5 Inconvenient Stock Truths For The Bold And The Reckless

By | Asia ETFs, Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Here are five big-league reasons to evaluate your current asset mix: 1. Credit Fundamentals Are Deteriorating. What do you remember about the financial crisis in 2008? Perhaps you think about a term like “subprime mortgage.” Or maybe you recall the way home values and stock prices collapsed. Either way, most would agree that households and businesses with too much access to credit borrowed beyond their means. Is it happening again in 2016? The Fitch Fundamentals Index (FFI) tracks changes in…

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