Category

Dividend ETFs

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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What Is The Most Opportunistic Asset Class Right Now?

By | Bond ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Real Estate ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Are the new all-time highs in U.S. large cap stocks as big a deal as the media would have you believe? On a year-over-year basis, other asset classes have been more impressive. Bonds via Vanguard Total Bond Market (BND), gold via SPDR Gold Trust (GLD) and the “risk-off” Japanese yen via Currency Shares Yen Trust (FXY) have all outperformed the S&P 500 SPDR Trust (SPY). Vanguard REIT ETF (VNQ) that captures a wide range of real estate investment trusts has…

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Bonds Say To Stocks, “We’re Just Not That Into You.”

By | Actively Managed ETFs, Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Five years ago, several European countries (e.g., Portugal, Italy, Greece, etc.) appeared as if they might default on their sovereign debt obligations. Gold prices spiked. The Japanese yen soared. U.S. Treasury bond yields plummeted. And the S&P 500 fell nearly 20% before globally coordinated central bank activity resuscitated investor appetite for U.S stocks. Today, Europe appears to be on the verge of another euro-zone crisis. This time, the United Kingdom’s decision to leave the European Union has threatened to destabilize the…

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Why You May Want To Sell Into The Post-Brexit Rally

By | Asia ETFs, Bond ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

For the better part of six years, between December of 2008 and December of 2014, the Federal Reserve created hundreds of billions of electronic dollar credits to pump up asset prices (e.g., stocks, bonds, real estate. etc.). Theoretically, the subsequent wealth effect would encourage businesses to invest in their growth, consumers to spend on discretionary items and the overall economy to improve dramatically. Since the Fed terminated its stimulus program (“QE3”), however, riskier assets have struggled and “risk-off” assets have thrived….

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Correlation Does Not Imply Causation, But It Does Mean ‘Lower Your Stock Allocation’

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

If you are fortunate enough to have $750,000 equity in a $1,000,000 home, and a fire ravages the property, what is your number one concern? The protection of the equity. Granted, you might be extremely curious about how the fire started. You may even want to know whether or not there was something you could have done differently to prevent the disaster. Nevertheless, you would be far more focused on the insurance coverage that would allow you to rebuild and recover than…

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Are You Willing To Be The ‘Greater Fool’ By Acquiring More Stocks Today?

By | Bond ETFs, Commodity ETFs, Currency 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

It does not matter if stocks are insanely overvalued, as long as there’s a more foolish participant who is willing to pay a higher price. That’s the essence of the “greater fool theory.” And right now, there are more foolish buyers that want “in the game” than risk-reducing sellers who want to scale back. It does not even seem to matter that corporate profits have slumped roughly 18.5% from their peak on 9/30/2014. Certainly, earnings per share growth has not…

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Cash-To-Debt Ratio Demonstrates Why Riskier Assets Have Limited Upside Potential

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Cash on corporate balance sheets grew at a 1% pace to $1.84 trillion in 2015. That’s a record level of dollars on the books. On the other hand, debt grew at a clip of nearly 14.8% to $6.6 trillion from $5.75 trillion. That’s a 15% surge in debt obligations. In fact, American companies have grown their debt load at a double-digit annualized rate since the economic recovery began in 2009. Doing so has put corporations in a precarious situation – circumstances…

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