Category

Health ETFs

How Much Faith In The Fed Is Too Much Faith?

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

What if the U.S. economy fails to pick back up from its dismal first quarter? Then the U.S. Federal Reserve will push off the frequency and the magnitude of any increases in overnight lending rates. That’s what the U.S. stock market is telling investors, as the S&P 500 and NASDAQ break above record highs. That’s what the U.S. bond market is telling investors, as the yield on the U.S. 10-Year Treasury continues an ominous descent. Perhaps more surprising than the…

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Understanding Why Rates Must Go Lower Leads To Better Risk-Adjusted Results

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, International ETFs, Mid Cap ETFs, US Markets and ETFs | No Comments

Is there any conceivable path for Japan – the world’s 3rd largest economy – to escape eventual default? The country owes one quadrillion yen ($8.4 trillion U.S. dollars), yet takes in only $460 billion annually. Even at negligible rates, the Japanese government must allocate approximately 40% of its total tax revenue on paying the interest – just the interest – on its government bonds. Is it any wonder that the Bank of Japan (BOJ) has never been able or willing…

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Bull Market, Bear Market or Barely Moving Market?

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Internet ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Semiconductor ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, Utilities ETFs | No Comments

Perma-bulls may note that the S&P 500 eked out a 0.4% gain in the first quarter of 2015. They may also choose to ignore warning signs such as the 5th consecutive month of decelerating economic activity in the manufacturing segment. The last time that this happened? 2008. A quick check of the individual sectors that make up the overall market demonstrates that an increasing number of them are losing ground rather than gaining it. For example, the transporters in the…

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Why A ‘Rate Hike Tantrum’ Will Not Kill Bond ETFs in 2015

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

The 10-year Treasury note is the most recognizable, and most important, debt instrument in the world’s financial system. It is vital to foreign jurisdictions, banks and investors as a way to gain exposure to the U.S. dollar as well as interest payments backed by the full faith and credit of the U.S. federal government. Stateside, the direction of the 10-year yield is highly correlated to the direction of mortgage rates and other popular loans. Lender interest rates tend to rise…

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What the NASDAQ’s Round-Trip To 5000 Really Means

By | Biotechnology ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Health ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

When the NASDAQ Composite Index hit 5000 in March of 2000, jubilant investors celebrated the milestone. Shortly thereafter, however, scores of individuals lost their collective shirts. Many witnessed losses of 50%, 60% or 80% of their account values on names like Cisco, JDS Uniphase and Pets.com. Back then, the euphoria was akin to unchecked greed. Today, the public is far more subdued. And that’s a positive sign. After all, how could we be in a “stock bubble” if we are…

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Scarcity and Stocks: How to Follow (Or Avoid) A Late ’90s “New Economy” Playbook

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

For the better part of 15 months, I have pounded the table for longer-term U.S. treasuries. Most financial pundits thought that I was nuts in December of 2013; they debated my scarcity premise throughout 2014 and they dismiss my relative value argument here in 2015. About the only concession? The talking heads have often acknowledged that if the “poop” hits the propeller, the proverbial flight to quality would involve super-sized demand for the perceived safety of U.S. sovereign debt. Nevertheless,…

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Stock ETF Investors Should Track Junk Bond ETF Apathy

By | Asia ETFs, Bond ETFs, Commodity ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Health ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Perhaps as long as China is cutting rates and Europe is buying asset-backed securities – and as long as the U.S. maintains its policy of zero percent interest rates – investors can ignore traditional risk in stock assets. Then again, contrarian assessments suggest that participants are closing in on euphoric extremes and credit spreads are beginning to widen again. Consider the preference investors have shown for investment grade government debt over comparable high-yielding corporate bonds. While spreads hit a peak…

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New 52-Week Highs: Which Stock ETFs Are Shining The Brightest?

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

In spite of a stock market sell-off that nearly set the S&P 500 back 10%, some stock ETFs have already recovered. That’s right. A handful of funds barely trembled during last week’s frightful liquidation. Shortly thereafter, this intrepid group ascended to record heights. Here are the more notable stock ETFs on the latest 52-Week High list. Do the 1-month and 3-month performance intervals hint at a pattern? New Highs: Least Volatile ETFs Are Shining The Brightest 1 Month % 3…

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The Barbell Approach To ETF Portfolio Allocation Continues To Shine

By | Alt Energy ETFs, Asia ETFs, Biotechnology ETFs, Bond ETFs, Commodity ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, Large Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs | No Comments

I did not invent the barbell strategy. At the start of the year, I simply offered readers a glimpse into the way that I would be managing ETF assets in the late-stage bull market. First, let me take you back to January when I explained that long-term rates would fall, not rise. The contrarian call had been met with ridicule at the time. Allocate a percentage of portfolio assets to long-term investment grade debt? “Ludicrous!” cried fans of ProShares Ultra-Short…

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Preparing Your ETF Portfolio For Increased Volatility

By | Asia ETFs, Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

HSBC’s most recent Purchasing Managers’ Index (PMI) for the Chinese economy rose to 50.5 from a final reading of 50.2 in August. The manufacturing sector may be expanding, but the growth is noticeably restrained. Meanwhile, German factories registered their slowest growth in 15 months and the French manufacturing segment continues to shrink. Equally disconcerting, the Japanese economy declined at its worst annual rate since the mayhem of the global credit crisis in the first quarter of 2009. Perhaps ironically, some…

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