Category

Industrial ETFs

U.S. Stock ETFs Completely Decouple From U.S. Economic Concerns

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Can we really attribute all of the horrendously weak economic data to icy pavements and polar vortexes? The Institute of Supply Management (ISM) services sector report for February recorded its weakest data point in four years (51.6), posting a percentage decline that is the second worst ever. In the same report, a sub-index on jobs showed that services sector employment actually contracted. Meanwhile, after-tax personal income for consumers dropped 2.7% from one year earlier — a decline that rivals the…

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Diversification Across ETF Asset Classes Reclaims Its Mojo

By | Bond ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Real Estate ETFs, Retail ETFs, Semiconductor ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Glum economic data derailed U.S. stocks in January. A mammoth “miss” for manufacturing activity, an unsettling decline in mortgage applications as well as an appalling “net-new-jobs” number were some of the high-profile culprits. At long last, it seemed as if the market might treat bad news as a reason to recoil. Here in February, though, disappointing data have only strengthened the resolve of buy-the-dip investors. Job growth deceleration from a 3-month rolling average of 190,000 down to 150,000 sent U.S….

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Develop Your “They May Never Completely Quit QE” Buy List

By | Biotechnology ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Emerging market ETFs are pulling back sharply from gains that they had achieved in recent months. The countries with the largest drops in the past few days are those that are most dependent on foreign capital to finance their super-sized deficits. In essence, speculation that some of the world’s central banks may pare back the printing of money is adversely affecting funds like WisdomTree India Earnings (EPI) and iShares MSCI South Africa (EZA). The broader-based Vanguard Emerging Markets (VWO) is…

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ETF Investor Implications Of An Absence In Sector Rotation

By | Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Global ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Natural Resources ETFs, Real Estate ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Over the last month, investors have witnessed a variety of strange events. The Republican party ungracefully bowed out of its bid to derail Obamacare during the tail end of the government shutdown. The Democrat party helplessly attempted to control damage associated with scores of consumers not being able to keep their health plans or their doctors. Meanwhile, employment data have never been more antithetical, as employers created 200,000-plus net new jobs in October, yet 900,000-plus left the work force in…

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3 Reasons To Consider Transportation ETFs

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, Transportation ETFs, US Markets and ETFs | No Comments

History tends to punish bull markets when speculative frenzies hover around a narrowing list of stand-outs (e.g., Netflix, First Solar, etc.), an increasing number of initial public offerings (e.g., Twitter, Container Store, etc.) and/or a dramatic rise in margin debt.  Perhaps ominously, all three circumstances currently exist, with margin debt at an all-time peak and IPOs at their highest level since 2007. Clearly, one could add dozens of reasons why the stock market might burst like an unchecked water heater….

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Sector ETF Reaction to Budget Impasse

By | Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Retail ETFs, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

It has been five trading days since “no-taper” euphoria has passed. In that time, U.S. stock assets have been falling, though the declines have been modest. Most investors continue to believe that a last-minute deal will be struck and that a bearish retreat like the 2011 correction is improbable. Nevertheless, different economic sectors appear to be responding differently to the current landscape. And while previous blueprints for budget uncertainty may have favored non-cyclical segments such as health care and consumer…

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Why Infrastructure ETFs Are Overrated

By | Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Industrial ETFs, International ETFs, Leveraged ETFs, Real Estate ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Early in 2007, a prospective client informed me that he would not be placing his $1,000,000 portfolio with my company, Pacific Park Financial. He explained that another Registered Investment Adviser specialized in leveraged emerging market ETFs and that the firm’s performance was amazing. I challenged the individual to better understand daily compounding versus annual compounding, though ultimately, I recognized the infatuation for what it was. Less than two years later, I received a phone call from a familiar voice. My one-time prospect expressed regret for…

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ETFs for the “Third Scenario”

By | Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Industrial ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

In 2013, Mondays have been noticeably superb for U.S. stock investors. Tuesdays have been even more spectacular; in fact, until a few weeks ago, the Dow closed higher on 20 consecutive occasions. However, what began as a siren song of riskless gains back in November could be shifting in pitch and tempo. The Dow has risen or fallen by 100 points or more for 5 straight sessions. What’s more, over the last month, the SPDR Dow Jones Industrials (DIA) has…

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U.S. Manufacturing Shrinks. Should You Rethink Your Exposure to High Beta ETFs?

By | Consumer ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs | No Comments

The possibility of the Federal Reserve slowing its bond purchasing program sent interest rates rocketing in May. Rate-sensitive assets — dividend stocks, REITs, MLPs, preferreds, muni bonds — all began to depreciate in value. By the end of the month, even common stocks began to stammer. Here on the first trading day of June, however, the Institute of Supply Management (ISM) offered up its assessment of U.S. manufacturers. Not only did the manufacturing sector shrink for the first time since…

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Great Rotation? Sector Rotation? Ignore Catchphrases When Selecting Your ETFs

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Global ETFs, Health ETFs, Industrial ETFs, International ETFs, Real Estate ETFs, Retail ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

There are moments when the media will grab hold of a terrific sound byte and refuse to let go. For example, some blame the recent weakness on yield-oriented assets — investment grade bonds, high yield bonds, convertibles, preferreds, REITs, defensive dividend stocks — on a mythical “Great Rotation.” The popular catchphrase describes a circumstance whereby investors exit bonds for the sunnier shores of high-powered equities. With the stock market’s recent surge to all-time highs, doesn’t the “Great Rotation” have to…

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