Category

Financial ETFs

Reduce Your Allocation To Small Cap U.S. Stock ETFs

By | Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Small Cap ETFs, Technology ETFs, Utilities ETFs | No Comments

The Wall Street media may celebrate the 35% intra-day jump in Alibaba shares. They may tout the record highs in the Dow and the S&P 500. However, they are missing the boat on both the economy as well as key stock market divergences. Let us start with the economic environment. The all-important Conference Board’s Leading Indicators Index (LEI) rose a meager 0.2%. That is indicative of an economy that has little chance of repeating its 4% 2nd quarter expansion. Even…

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Currency Hedged Stock ETFs Can Protect A Diversified Portfolio

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

The U.S. economy has been growing at an annualized pace of roughly 2% since the current expansion began in June of 2009. Gross Domestic Product (GDP) for the first half of 2014 hovered around a paltry 1%. And while many contend that 2nd quarter growth at approximately 4% is signaling better times ahead, members of the Federal Reserve are keenly aware of the recovery’s fragility. That is why the central bank continues to maintain a remarkably accommodating policy of zero…

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Questions For U.S. Stock ETF Bulls

By | Bond ETFs, Commodity ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Small Cap ETFs, US Markets and ETFs | No Comments

Have you studied the history of stocks in the U.S? Most people are aware of the crash in 1929 as well as the capital depreciation that occurred through 1932. Yet many may not be aware of the government stimulus in 1933 that helped the market soar 200% over the next four years. While the stimulus may have aided in pulling the markets higher in the absence of organic economic growth, stocks eventually tanked nearly 50% in a ferocious 1-year bear…

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These 5 ETF Charts Are Killing “Risk-On” Exhilaration

By | Asia ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, International ETFs, Latin America ETFs, Real Estate ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Admit it. You are feeling a little bit edgy these days. While you understand that fear is the elixir of investment opportunity, you also recognize that there is little glory for the last person standing on a sinking aircraft carrier. Most in the media have been touting bull market accomplishments, job gains and economic progress. Writers regularly highlight the monster percentage gains that U.S. stocks have enjoyed since the lows hit in March of 2009 rather than discuss the reality…

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Home Sales Data Incinerate Confidence In Economically Sensitive Stock ETFs

By | Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Materials ETFs, Real Estate ETFs, Special Sectors ETFs, US Markets and ETFs | One Comment

My wife and I sold two condominiums near the tail end of 2005. We could not justify owning residences that were 40% more expensive to own than to rent. Simply put, it was time to cash in. Due largely to my comfort with the liquidity of market-based securities, I did not wade back into the real estate investment waters until 2012. I purchased a mixed-use property in a short sale. And today, I operate Pacific Park Financial, Inc. – a…

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Sector ETFs In 2014 And 2007: The Inconvenient Comparison Feels Like A Bone In The Throat

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Internet ETFs, Materials ETFs, Real Estate ETFs, Retail ETFs, Special Sectors ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

The S&P 500 has served up a 7%-plus return through the first six-and-a-half months of the year. That’s remarkably impressive when one considers the depth of geopolitical conflict, the implication of structural under-employment, the October end of quantitative easing (QE3) and the strong possibility of a significant change to the legislative branch this November. Naturally, some investment sectors of the economy have outperformed others. Here’s a peek at the 2014 year-to-date results: Sector ETF Performance (1/1-7/21) in 2014    …

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3 Rate-Sensitive ETF Categories Demonstrate High-Caliber Endurance

By | Alt Energy ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, International ETFs, Real Estate ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Many of the word’s most respected economists projected the direction of interest rates at the start of the year. The average assessment? Experts collectively anticipated that the 10-year Treasury bond yield would rise from 3.03% to 3.41% by the end of 2014. I didn’t see it. For one thing, the well-being of real estate in a below-trend recovery largely depends on rate containment. Yet rising interest rates adversely impacted home sales in the 2nd half of 2013.  Second, the Federal Reserve…

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Are Consumer ETFs Ready To Cry Uncle?

By | Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Materials ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Most folks experience anxiety about carrying any kind of debt load. Many of us do not even distinguish between the different types of debt that we owe. Of course, some debts may be “better” than others. A subsidized Stafford loan from the Federal government allows a student to defer his/her principal and interest during college, pay back a low fixed rate of roughly 3.86% after school, as well as achieve a degree that increases one’s salary potential. Similarly, a first…

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Are Record Levels Of Consumer Credit Dangerous To Your ETF Portfolio?

By | Alt Energy ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Large Cap ETFs, Retail ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Technology was the best performing sector in the five years prior to the 2000-2002 stock market bear. The acceleration of dot-com mania created a boom-to-bust scenario that few had ever seen. Yet “tech” actually weakened before other segments of the economy. What’s more, corporate shares of technology companies witnessed far more violent sell-offs than stock shares of other sectors. Financial corporations led the bull market advance in the five years prior to the 2007-2009 collapse. Questionable underwriting practices fueled a…

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Three Reasons Top Earners Should Favor High Yield Muni ETFs

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Many fear that rising interest rates will crush income-oriented portfolios. Get over it — that was last year’s news. In fact, the vast majority of high-yielding assets have been the best performers of 2014, including utility stocks, REITs as well as long-dated U.S. Treasuries. Naturally, some investors still wish to hedge against rate risks. What these folks need to recognize is that rising interest rates are currently threatening the short end of the yield curve, not the long end. Safety-seekers…

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