Category

Energy ETFs

Remember July 2011? The Stock Market’s Advance-Decline (A/D) Line Remembers

By | Asia ETFs, Commodity ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, Large Cap ETFs, Retail ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

According to Bloomberg data, the modest year-to-date increase in the S&P 500 is attributable to health care and retail alone. Worse yet, the two industry segments trade at a 20% premium to the market at large. Paying a premium for growth is one thing. Chasing a handful of momentum stocks is another. Brokerage firm Jones Trading sharpened the knife even further, noting that six corporations account for more than the entirety of the meager 2015 gains in the S&P 500. Those…

Read More

Allocation Advice For The Do-It-Yourself Investor

By | Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Health ETFs, Industrial ETFs, International ETFs, Large Cap ETFs, Materials ETFs, Small Cap ETFs, Technology ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

At the tail end of 2014, individual investors as well as financial web site editors asked me for predictions on a variety of assets heading into 2015. I answered as many folks as I could. I suggested that foreign developed stocks via iShares Currency Hedged EAFE (HEFA) or Vanguard Europe Pacific (VEA) would likely outperform U.S. stocks, due to perceived value, easing of monetary policy and four consecutive years of foreign equity underperformance. (When was the last time that U.S. equities…

Read More

When Market Breadth Stinks, Cash Is The Mouthwash

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Materials ETFs, Real Estate ETFs, Retail ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Perma-bulls on the major networks routinely gloss over the reduction in stock market breadth. For example, 60% of the Dow 30 components currently sit below long-term moving averages. When companies like Coca-Cola, Wal-Mart, DuPont, Intel and Verizon are simultaneously suffering from rally fatigue, one might anticipate an eventual breakdown in the gravity-defying direction of popular benchmarks like the Dow and the S&P 500. It is not just companies in the Dow that are struggling. Most of the individual sector investments…

Read More

Rate-Sensitive, Energy-Sensitive Sectors Now Down 10%-Plus

By | Biotechnology ETFs, Bond ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Internet ETFs, Natural Resources ETFs, Real Estate ETFs, Technology ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Bullish borrowers have increased their margin debt to invest in stocks from $445 billion in January to $507 billion today. And why not? The overall price movement for growth sectors of the stock market remains healthy. Flashy sub-segments like cyber-security and biotech continue to soar. For example, I allocated a small portion of moderately aggressive client assets to the Pure Funds ISE Cyber Security ETF (HACK) in early February. Its series of higher lows since its inception lent credibility to…

Read More

3 Reasons June Gloom Is Already Hitting The Markets

By | Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

The theme of maintaining a sunny disposition in spite of genuine concerns has always been prevalent in music. Bobby McFerrin told people not to fear cash flow troubles or paying the rent late in his 80’s chart-topper “Don’t Worry, Be Happy.” Similarly, an animated meerkat from 1994’s The Lion King sang about ignoring one’s worries during the movie’s signature song, “Hakuna Matata.” If you have a significant stake in today’s financial markets, however, it may be challenging to bury your…

Read More

An Energy ETF Resurgence Defies The Naysayers

By | Alt Energy ETFs, Commodity ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Natural Resources ETFs, US Markets and ETFs | No Comments

Maybe you do not know who Rex Tillerson is. Maybe you did not realize that Tillerson, a dinosaur in the energy sector, is the chairman and CEO of Exxon Mobil (XOM) – one of the largest corporations on the planet. The company that he runs had been the largest in the world by market capitalization up until mid-2011 – when smartphone madness effectively handed the crown to Apple (APPL). Strangely enough, Exxon (XOM) briefly reclaimed the title in January 2013…

Read More

Stocks And Long Bonds Know That The Fed’s In A Pickle

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

Economists should not have been stunned by downward revisions to job creation for January and February. Similarly, analysts should not have been surprised by the painfully weak jobs data for March – information that confirmed the seriousness of the ailing U.S. economy. Some folks are clinging to the hope that the slowdown is attributable to poor weather and West Coast port disputes. They want to believe that decelerating manufacturing activity, corporate revenue shortfall, weak consumption and unimpressive job creation are…

Read More

Risk Aversion Gains Momentum And Risk Taking Loses It

By | Asia ETFs, China ETFs, Commodity 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, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The case for investing in riskier assets has often been described as a sensible quest for yield and/or capital appreciation in a world with ultra-low interest rates. That helps to explain why the S&P 500 has defied the odds with respect to corrective activity, garnering double-digit percentage gains in 2012, 2013 and 2014. Yet the preference for risk averse treasuries over higher-yielding debt since July of last year puts a dent in the notion that speculation is still in vogue;…

Read More

How Long Before “They’re Raising Rates” To “They’re Considering QE4?”

By | Asia ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The media are telling us that U.S. stocks have been under pressure this January due to global growth fears and an accompanying rout across the entire commodity space. Yet that only tells a small part of the story. After all, the S&P 500 SPDR Trust (SPY) has performed quite admirably over the past three years, blissfully unresponsive to the global growth woes reflected in ETFs like Vanguard Emerging Markets (VWO) and iPath SJ-UBS Commodity Index (DJP). If foreign economic stagnation…

Read More

Bears Growl At Bonds And Energy… So Buy Both

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

Over the previous six years, the stock market is not the only thing that has gone up. Total U.S. debt has catapulted from roughly $10.5 trillion – give or take $100 billion – to $18.0 trillion. That’s a 70% increase in the country’s outstanding obligations since the start of 2009. Perhaps ironically, I have spent the better part of 13 months explaining why our unsustainable debt burden, at least from an investor perspective, does not matter. (At least not in…

Read More