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Energy 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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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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What the 3rd Quarter Tells Us About The Stock Market In October

By | Biotechnology ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, International ETFs, Large Cap ETFs, Semiconductor ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Three months ago to the day (6/30), I served up a list of reasons for lowering one’s exposure to riskier assets. I discussed weakness in market internals where fewer and fewer corporate components of the Dow and S&P 500 had been propping up the popular U.S. benchmarks. I talked about the faster rate of deterioration in foreign stocks over domestic stocks via the Vanguard FTSE All-World (VEU):S&P 500 SPDR Trust (SPY) price ratio. Additionally, I highlighted exorbitant U.S. stock valuations,…

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The Stock Market’s Best Shot? A Fed Promise To Move Slower Than A Three-Toed Sloth

By | Asia ETFs, Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Mid Cap ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Consumers, as opposed to manufacturers, represent two-thirds of the U.S. economy. Indeed, Americans love to splurge. We buy sneakers, iPhones, home furnishings, real estate, cars, jewelry, concert tickets, and meals at our favorite restaurants. We even buy chew toys for our pets. Many of us, however, do not have enough cash saved up to acquire the things that we want when we want them. So we borrow. We satisfy our cravings through instruments of debt – credit cards, mortgages, “refis,”…

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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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This Is What Happens When The Fed Tries To Leave ‘QE’

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

Back on October 29, 2014, the Federal Reserve ended its largest round of quantitative easing (QE3/QE4). The unconventional policy of buying market-based assets with electronically created credits (dollars) first began in late November of 2008. Since that time, $3.75 trillion in stimulus forced interest rates downward and sent stock prices soaring. The S&P 500 moved from 857.39 when QE1 was first announced to 1982.30 when QE3/QE4 ran its course for an approximate gain of 131%. Equally intriguing, when the Fed backed…

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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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3 Reasons Why Risk Is Exiting The Debate Stage

By | Bond ETFs, Commodity ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, International ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

More than a handful of people asked me if I would be watching the big debate. 10 candidates. One stage. Which politician will emerge as the clear-cut favorite to win the Republican party nomination? It may surprise some folks, but I have zero interest in the made-for-television event. Each individual will receive about as much air time as Bethe Correia earned in her UFC Title fight against Ronda Rousey. (America’s superstar dropped the Brazilian fighter in 34 seconds.) From my vantage…

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5 Reasons To Lower Your Allocation To Riskier Assets

By | Asia ETFs, China ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

For months, I have been discussing the likely implications of deteriorating market breadth. For instance, fewer and fewer components are holding up the Dow, the S&P 500 and the NASDAQ. Only a small number of industry sectors are keeping the popular benchmarks in the plus column. Similarly, half of the stocks in the S&P 500 currently demonstrate bearish downtrends. And declining stock issues are significantly pressuring advancing stock issues for the first time since July of 2011. Historically, when a handful…

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