Category

Emerging Market ETFs

1704 on the S&P 500 in 2016? Less Far-Fetched Than Investors Want To Believe

By | Asia ETFs, Bond ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

How does a favorable bullish uptrend become an unfavorable bearish downtrend? Does the transition happen overnight? Do commentators, analysts, money managers and market participants simultaneously concur that the environment for risk-taking is exceptionally poor? The transition from “good times” to “bad times” is far more gradual than many realize. Granted, prices on the Dow or the S&P 500 may fall apart in a matter of days, changing the narrative from “no reason to worry” to “don’t panic.” That said, there…

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U.S. Stocks In 2016? Keep An Eye On The Global Economy

By | Asia ETFs, Bond ETFs, China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, Technology ETFs, Transportation ETFs, US Markets and ETFs | No Comments

During the previous bull market (10/02-10/07), financial media fawned over the critical importance of diversifying one’s equity exposure across the globe. And why not? Performance for foreign exchange-traded trackers like iShares MSCI EAFE (EFA) and iShares MSCI Emerging Markets (EEM) far surpassed anything the S&P 500 could muster up; developed international markets doubled U.S. capital appreciation while emerging economies catapulted 350%! Indeed, when I spoke at conferences 10 years ago, attendees rarely inquired about companies listed on the NASDAQ or…

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Has The “Smart Money” Or The “Dumb Money” Been Reducing Risk?

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

Is it the “smart money” or the “dumb money” that has been seeking safer portfolio pastures throughout 2015? Time itself will tell. That said, riskier assets have been buckling clear across the asset board. Consider the iShares 7-10 Year Treasury Bond ETF (IEF): iShares iBoxx High Yield Bond ETF (HYG) price ratio. A rising IEF:HYG price ratio signals an increasing desire for the perceived safety of U.S. treasuries over the higher yield-producing income of comparable corporates. The ratio has not…

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A Stock Market Breather Before a Big-Time Bullish Breakout? Not Bloody Likely

By | Asia ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, Industrial ETFs, International ETFs, Large Cap ETFs, Natural Resources ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

It is unsettling to deal with the probability that we are closer to a bearish decline in stocks than a bullish reboot. Investment account values will wane. Household net worth will diminish. And when stock prices near their lowest ebb, the typical investor will decide that buying is impractical. However, if one prepares for inevitable depreciation in overvalued asset prices, buying low becomes less intimidating. For example, in spite of the exceptionally poor rap that trend-following techniques receive from the…

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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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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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All About Nothing: Stock ETFs Celebrate Zero Percent Rate Policy

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Internet ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

About a year ago, I was meeting a client at a restaurant in Marina Del Rey, California. The traffic had been mild by Los Angeles County standards, so I arrived in the area early. I stopped in a local coffee shop and sat down in a booth. Lo and behold, in the booth next to me, Jerry Seinfeld had been interviewing Jim Carrey for a “webisode” of the popular online show, Comedians In Cars Getting Coffee. The reason that I bring this…

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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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