Category

International ETFs

Markets Priced For Perfection Rarely Get What They ‘Price In’

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, Large Cap ETFs, Popular Posts, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

It is almost inconceivable. Just 10 years ago, you could purchase a 3-year Treasury and sock away a risk free rate of return of nearly 6%. Right now? A paltry 1.5%. It follows that, today, one must take enormous chances to generate an income stream up and above the pace of inflation. And that’s only if you believe inflation gauges placing the annual rate in the neighborhood of 2%. For example, let’s assume an individual purchases a 5-year Treasury for…

Read More

Pro-Business Tax Cuts And Fiscal Stimulus Will Not ‘Trump’ Tighter Financial Conditions

By | Asia ETFs, Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, Large Cap ETFs, Popular Posts, Small Cap ETFs, US Markets and ETFs | No Comments

What is GDP per capita? It is the value of all goods and services produced in an economy divided by the number of people living in it. Why is it important? It is one of the premier ways to identify both the comfort level of a country’s citizens at a given moment in time as well as the well-being of citizens over time. At the present moment, people living in the United States have it pretty good. Not quite as…

Read More

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…

Read More

Bought the Super-Charged Growth Rumor? Prepare to Sell the Mediocre Growth News

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

If I had to identify a half-dozen of my favorite movies, The Shawshank Redemption would definitely make the cut. It may even be on your Top Five list. Why am I bringing it up? In essence, the film produced one of the more inspirational quotes in motion picture history. The hero pens a letter to his incarcerated friend and he included, “Remember, Red, hope is a good thing, maybe the best of things. And no good thing ever dies.” Ironically, hope is not particularly…

Read More

Three Reasons Why The 30-Year Bond Bull Market Is Still Intact

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

How quickly they forget. For 30 years, mainstream analysts have been declaring the end of the secular bull market in bonds. And for 30 years, they’ve been dead wrong. Consider the recent history of the economic recovery since the Great Recession. Specifically, bond yields spiked after the Federal Reserve wrapped up quantitative easing (QE) in the spring of 2010. Scores of analysts declared the end of the bond bull. Were they right? Hardly. Rates cratered alongside the Fed’s about-face on…

Read More

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…

Read More

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….

Read More

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…

Read More

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…

Read More

Why Stocks Have Gone Nowhere For 18 Months (And Counting)

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

Some charts are more interesting than others. For example, Rob Isbitts at Sungarden Investment Research pointed out that the three-year return for the S&P 500 has dipped below 30%. Why might that matter? When the three-year return disappointed investors with single-digit annualized gains (< 10% per year) in 2001 and again in 2008, bearish stock sell-offs came to fruition. Technical analysts have also taken notice of the “lower lows” in the S&P 500’s three-year return since the end of 2014. The pattern…

Read More