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Global ETFs

What Negative Interest Rates Tell You About The Risk-Reward Backdrop

By | Asia ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, US Markets and ETFs | No Comments

When a country’s central bank reduces its interests rates below zero (i.e., “goes negative”), the action should boost the relative appeal of stock assets. That is the theory. Unfortunately, recent policy initiatives by the European Central Bank (ECB) and the Bank of Japan (BOJ) have failed to inspire their respective stock markets. The ECB first began fooling around with negative interest rate policy in June of 2014 by lowering its overnight deposit rate to -0.1.% It went to -0.2% in…

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Do Historical Comparisons Matter? Strong Similarities Between 1937 And 2015

By | Bond ETFs, Commodity ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The case for the continuation of the U.S. bull market heavily rests on the shoulders of steady economic growth and low interest rates (on an absolute basis). Many believe that, as long as these circumstances exist, stocks will provide venerable results. However, market participants might want to consider a similar period in history – a time span when the 10-year treasury offered paltry yields, gross domestic product (GDP) grew at a reasonable clip and the Federal Reserve tightened monetary policy….

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U.S. Stocks In 2016? Keep An Eye On The Global Economy

By | Asia ETFs, Bond 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, Technology ETFs, Transportation ETFs, US Markets and ETFs | No Comments

During the previous bull market (10/02-10/07), financial media fawned over the critical importance of diversifying one’s equity exposure across the globe. And why not? Performance for foreign exchange-traded trackers like iShares MSCI EAFE (EFA) and iShares MSCI Emerging Markets (EEM) far surpassed anything the S&P 500 could muster up; developed international markets doubled U.S. capital appreciation while emerging economies catapulted 350%! Indeed, when I spoke at conferences 10 years ago, attendees rarely inquired about companies listed on the NASDAQ or…

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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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Risk Asset Update: Vast Majority Agonize Since The S&P 500’s August Lows

By | Actively Managed ETFs, Asia ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Natural Resources ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Weren’t lower oil prices supposed to act like a “tax cut” for U.S. households? If families spend less at the gas pump, then they will spend more of their dollars at the mall. At least that’s what mainstream media cheerleaders like CNBC’s Jim Cramer have insisted throughout the year. In contrast, the S&P SPDR Retail Index (XRT) demonstrates that investors are not particularly impressed by the prospects of American retailers. The current price for the exchange-traded fund tracker is lower…

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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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Can Service-Oriented Sectors Manufacture A Healthy Bull In Stocks?

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, US Markets and ETFs | No Comments

The Institute for Supply Management (ISM) reported that its services index climbed to 59.1 for October. Any reading above 50 represents economic expansion. Meanwhile, the ISM’s manufacturing index limped to the barn with 50.1. Not only is the percentage teetering on the brink of contraction, but the nine point disparity represents the widest divergence between the two indices in 14 years. Perma-bulls have dismissed the manufacturing slowdown as little more than noise. Yet weakness in the energy, materials and industrials…

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13 Economic Charts That Wall Street Doesn’t Want You To See

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, ETF Philosophy, Global ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

About a week ago, I spent an afternoon playing basketball and drinking beer with a best friend from my high school days. It was the second get-together in five months. How is that unusual? Prior to the first go-around this past May, I had not seen Anthony in more than 30 years. I asked Anthony if he remembered the night that we knocked over the practice field’s goal posts. (Give me a bit of “labor slack” here… we were teenagers…

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‘Taper Tantrum’ Round 2? It’s More Serious For Stocks This Time Around

By | Asia ETFs, Biotechnology ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, US Markets and ETFs | No Comments

By definition, a recovery is the regaining of something lost. Homeowners have partially (and in some instances, entirely) recovered the equity in their property since the start of the Great Recession. Similarly, market-based securities investors have regained their capital and even accumulated additional paper wealth. The jobs recovery is a bit more challenging to quantify. For example, prior to the start of the Great Recession in December of 2007, the headline unemployment rate was 4.7%. A year into the economic contraction,…

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