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Europe ETFs

Is The World’s Largest Hedge Fund Wrong About Stock Assets?

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

Bridgewater Associates has roughly $160 billion under management, making it the largest hedge fund on the planet. Exchange traded funds like Vanguard FTSE Emerging Markets (VWO) the SPDR Gold Trust (GLD) and the S&P 500 SPDR Trust (SPY) head the list of top holdings. Last week, Bridgewater said, “We are bearish on financial assets as the U.S. economy progresses toward the late cycle, liquidity has been removed, and the markets are pricing in a continuation of recent conditions despite the…

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The S&P 500 and Stephen Hawking: A Theory on “Peak Everything”

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

The NASDAQ served up an annualized return of 66% in its final two years of dot-com mania. Only after the balloon had burst did people begin to question the lunacy of paying 10x revenue for the privilege of being a shareholder. Ironically enough, since early 2016, the top 10 growth names in tech collectively produced an annualized return of 67%. That’s right. The NYSE FANG+ Index has topped turn-of-the-century craziness. For the current bull-bear cycle, then, we may be witnessing…

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Do Stock Sellers Understand Something That Recent Buyers Do Not?

By | Biotechnology ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Popular Posts, Small Cap ETFs, US Markets and ETFs | No Comments

Is the stock market going up because there are more buyers than sellers? No. There are a fixed number of shares in the marketplace. For every buyer of a share, there needs to be a seller of the asset. In fact, a transaction cannot occur without each participant – each buyer and each seller – playing a role in a trade. So why is the U.S. stock market relentlessly powering ahead? Shareholding sellers are only willing to accommodate eager buyers…

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A Secular Bull Market For Stocks? Not Without An Intimidating Bearish Interlude

By | China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Large Cap ETFs, Latin America ETFs, Small Cap ETFs, Technology ETFs, US Markets and ETFs | No Comments

I could not be any prouder of my 20-year old daughter. In the recent semester, she received “straight 7s” while studying abroad at the University of Queensland in Australia. (Those are “As.”) More impressively, within a week of arriving back in the United States this past November, she secured two part-time lab assistant positions. That’s right. My kid works while pursuing her biology degree at the University of California in San Diego. Why am I writing about my daughter’s triumphs?…

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How Should You Address The Existing Risk Of Disastrous Loss In The Market?

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Large Cap ETFs, Popular Posts, Special Sectors ETFs, US Markets and ETFs | No Comments

The previous decade’s financial crisis did not begin in earnest until 2008. Bear Stearns. Lehman Brothers. AIG. And yet, the warning signs had appeared long beforehand. Real estate sales had turned negative on a year-over-year basis in 2006, even as prices kept climbing. Meanwhile, SPDR Select Sector Financials (XLF) logged -21% in 2007, even as the broader S&P 500 had notched a record high as late as October. In mid-2015, European financial stocks peaked. And in much the same way…

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Stocks and Bonds: Which Asset Class Balloon Will Pop First?

By | Asia ETFs, Bond ETFs, Currency ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

In 2013, the S&P 500 closed at a record high at the same time that the 10-year U.S. Treasury bond yield closed at a record low. The reason? The Federal Reserve had been buying hundreds of millions of government bonds as part of its quantitative easing (QE) program. Indeed, back in 2013, Fed leaders determined that the country still required emergency-level economic stimulus. Here in 2016, the S&P 500 may close at a record high above 2130 at the same…

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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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Zero Rate Hikes In 2016? It Still Won’t Be Enough To Help The Economy Or Stocks

By | Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Small Cap ETFs, US Markets and ETFs | No Comments

According to the Goldman Sachs Current Activity Indicator (CAI), economic well-being peaked in November of 2014. The erosion from 4.1% down to 1.3% over the last 18 months demonstrates just how vulnerable the U.S. economy currently is. Not surprisingly, economic weakness has taken its toll on stock assets. The S&P 500 has not gained meaningful ground since the Fed officially stopped its bond purchases on December 18, 2014. Smaller company stocks in the Russell 2000? A bit of depreciation over the…

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Time In The Markets, Not ‘Timing’ The Markets? At Least Know The Facts

By | Asia 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, US Markets and ETFs | No Comments

What do China, Japan, India, England, Germany… heck, most of the significant economies around the globe, share in common? Bear market declines in stock prices of 20% or more. Several ETFs demonstrate the breadth of the global depreciation in equities. For example, SPDR EURO STOXX 50 (FEZ) illustrates the doggedness of the downtrend in Europe. The pattern has persisted since the summer of 2014. Meanwhile, iShares MSCI All-Country Asia ex Japan (AAXJ) highlights the struggles in the Pacific, and iShares…

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