Category

Energy ETFs

Threat Assessment: Perils Are Pointing To The Possibility Of Heartbreaking Losses

By | Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Popular Posts, Real Estate ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Stocks rocketed to all-time highs between October 1990 and March of 2000 to register the longest bull market ever (9 years, 5 months). No matter how ridiculous the price-per-stock share – no matter the mindlessness associated with owning U.S. tech stocks at 65 times trailing profits (rather than 15) – the popular view had been that the Internet’s “New Economy” had changed the rules of the game. Unfortunately, it hadn’t. The Nasdaq 100 ETF (QQQ) gave up 80% of its…

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Buy Or Sell Tesla (TSLA)? Tell Me What The “Feds” Are Going To Do

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

A client recently asked me for an opinion on Tesla (TSLA). I snickered. Not because I had a negative outlook on the electric vehicle manufacturer. Nor did I laugh because I doubted Elon Musk’s ability to lead. Did I chuckle because auto demand might be peaking? No, that wasn’t it. Or because low gasoline prices may be dampening enthusiasm for alternative energy? Not at all. Perhaps I giggled because eventual profitability for the company remains a huge question mark. Surprisingly, my…

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The Stock Buyback Conundrum: Will Companies Keep It Up Much Longer?

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

Some facts are more interesting than others. For example, Liz Ann Sonders, chief investment strategist and perma-bull at Charles Schwab, recently acknowledged that “…there has not been a dollar added to the U.S. stock market since the end of the financial crisis by retail investors and pension funds.” Let the reality sink in for a moment. “Mom-n-pop” investors as well as pension funds have not added to their U.S. equity positions during the seven-year-plus bull market. That includes the last three months in…

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Are Stocks Cheap Now? Get GAAP If You Want To Get Real

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

The times they are a changin’. In the ’80s as well as the ’90s, corporations reported quarterly results that corresponded to generally accepted accounting principles (GAAP). These days, the vast majority of companies report “pro-forma” earnings that adjust for unusual, special or one-time circumstances. Take a look at the dramatic rise in the percentage of companies serving up adjusted profits per share rather than GAAP-based results. In June of 2010, 70% provided adjusted earnings. However, as the pressure to engineer…

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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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Are The Tailwinds For Stocks Turning Into Tornadoes?

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

Recently, I was speaking with one of the co-founders of the popular exchange-traded fund web site, ETF Database. He wanted to get my thoughts about the problems with “buy-n-hold.” I did not hesitate to give him an earful. Rather than chronicle my conversation in its entirety, or reiterate my commentary from dozens of previous articles on the topic, readers may wish to contemplate the risk of holding onto a permanent portfolio at this moment. Indeed, the risk of hold-n-hope at…

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Why Stocks Are Getting Riskier By The Day

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, International ETFs, Materials ETFs, Retail ETFs, US Markets and ETFs | No Comments

The central bank of the United States (a.k.a. the Federal Reserve) may hike its overnight lending rate in December. Committee members are also discussing plans to phase out the reinvestment of principal on balance sheet securities. Translation? Borrowing costs are set to move higher. The Fed is tightening for the first time in nearly a decade. In so doing, it is implicitly signaling faith in the U.S. economy’s ability to accelerate. The question investors might want to ask is whether…

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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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