Category

Leveraged ETFs

Leveraged Retail ETFs: Just In Time For A 2nd Half Slowdown?

By | Consumer ETFs, Current Affairs and ETFs, ETF Strategy, Leveraged ETFs, Retail ETFs, Short ETFs, US Markets and ETFs | No Comments

Corporations continue to post phenomenal earnings. And yet, macro-economic reports continue to register weaker-than-expected numbers. It’s a battle for the soul of the investing public. Do you believe that strength at classic cyclical organizations (e.g., Intel, Alcoa, etc.) will lead to improvement in hiring, consumption and overall GDP? This would likely be bullish for stock assets. Or do you anticipate that a core unwillingness to lend, hire or consume will be the eventual undoing of corporate profits? This would likely be bearish for equity…

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Bull Market ETFs, Bear Market ETFs: A Total Absence Of Conviction

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Large Cap ETFs, Leveraged ETFs, Short ETFs, US Markets and ETFs | One Comment

Hedge funds aren’t done buying or selling. And they aren’t particularly interested in making huge bets in this environment… on the long or the short side. So what are hedge funds looking to do if they aren’t trying to make money? Right now, they are far more interested in keeping their powder puffs dry. And that means… they’re still in the process of raising cash levels. Although I am an institutional money manager whose company is registered with the SEC… and not a hedge…

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Traders Still See Huge Risks In Financial ETFs

By | Current Affairs and ETFs, ETF Philosophy, Financial ETFs, Leveraged ETFs, US Markets and ETFs | No Comments

Perhaps the most common question that I receive from financial journalists at popular publications (e.g., Investor’s Business Daily, Smart Money, Business Week, etc.) regards ETF risk. For example, with U.S. stock assets eclipsing their January highs, and coming off a 9.2% correction, writers are asking, “What do you see as the next big hurdle?” In truth, it would be easy to parrot world-renowned speakers. Pimco’s El-Arian continues to press the sovereign debt uncertainty button. Other media stars will tell you that it’s all about…

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ETF Investors Still Running Away From The U.S.A.

By | Asia ETFs, Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Health ETFs, International ETFs, Large Cap ETFs, Leveraged ETFs, Mid Cap ETFs, Natural Resources ETFs, Short ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

In January, ETF fund flows depicted a number of seemingly incongruous events. Investors liked foreign stocks, but hated U.S. stocks. They distanced themselves from the risks of the financial sector, while they embraced the risks of energy and natural resources industries. Meanwhile, foreign currencies became outcasts, yet most forms of U.S. bonds received billions of new assets. Perhaps ETF investors are being drawn to foreign equities because of the super-sized gains achieved in 2009. Yet that wouldn’t explain the enormous inflow into…

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5 ETFs For “Agreeing” With 2010 Economic Forecasters

By | Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Energy ETFs, Global ETFs, Leveraged ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The Economist polls a wide variety of economic forecasters to come up with consensus readings on inflation (consumer prices) and GDP growth. Similarly, Bloomberg has sought median forecasts on year-end changes on world currencies. Here’s a quick summation on what the business journalists found: 1. Nearly all consumers in the developed world will see rising prices (a.k.a. inflation), though the erosion of purchasing power will be less than the historical norm. What’s more, since last month, polled economists raised their 2010 inflation expectations on 7…

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ProShares UltraShort Real Estate: Lessons On How NOT To Invest In ETFs

By | ETF Philosophy, ETF Strategy, Leveraged ETFs, Real Estate ETFs, Short ETFs, Special Sectors ETFs | No Comments

Legitimate criticism of leveraged ETFs is rapidly fading from the blogosphere. In fact, a number of my peers serve up “champagne-and-caviar-like” praise for Leveraged ETFs. There may be a reason for that… and that reason may be a direct or indirect advertising/financial arrangement. In fact, one wonders why there isn’t a warning label with, “Caution: Commentators receive compensation from Leveraged ETF provider.” There’s nothing inherently evil about relationships such as these. It happens in every sector of private or public business. That said, investors should genuinely understand “behind-the-scene”…

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Sector ETF Risk: Health Care ETFs? Financial ETFs?

By | Actively Managed ETFs, Alt Energy ETFs, Asia ETFs, 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, Health ETFs, Industrial ETFs, International ETFs, Internet ETFs, Large Cap ETFs, Latin America ETFs, Leveraged ETFs, Materials ETFs, Mid Cap ETFs, Middle East ETFs, Natural Resources ETFs, Real Estate ETFs, Retail ETFs, Semiconductor ETFs, Short ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

The Senate recently voted in favor of a health reform bill. Is this good or bad for medical insurers? November new home sales were no better than they were in April. Does that spell doom for homebuilders or serve up new opportunity? Congress raised the deficit debt ceiling to $12.4 trillion. Can the U.S. dollar really handle the seemingly endless deficit spending? Economic risk, business risk, credit risk, currency risk, country risk, market risk, systems risk, liquidity risk, concentration risk……

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Short Treasury ETFs: A Potential Turning Point For ProShares Fans?

By | Bond ETFs, Current Affairs and ETFs, ETF Strategy, Leveraged ETFs, Short ETFs | No Comments

At the end of September, the U.S. economy (GDP) grew at an unexpectedly fast clip of 3.5%. Yet this did little to push U.S. treasury yields higher. At the end of October, the Fed unceremoniously completed its $300 billion purchase of U.S. treasury bonds. In spite of the cessation in buying U.S. government debt, treasury yields remained flat. They even moved slightly lower. By the end of November, the prominent troubles in Dubai World’s debt gave investors reasons to head for the perceived…

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New iShares Diversified Alternatives Trust ETF (ALT) Doesn’t Cut It… Yet!

By | ETF Philosophy, ETF Strategy, Leveraged ETFs, Short ETFs, Special Sectors ETFs | No Comments

Remember the day when an exchange-traded fund was as easy to grasp as the sunshine is bright? No longer! On Monday, 11/16/09, iShares launched the Diversified Alternatives Trust (ALT). Its stated objective? Well… that’s too long for a gifted speaker to say aloud on a single breath of air. (Go ahead… try it for yourself!) “The objective of the Trust is to maximize absolute returns from its portfolio of exchange-traded futures contracts (that may involve commodities, currencies, interest rates and certain eligible stock or bond indices) and…

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Precious Metals ETFs: A Less Risky Way To Maintain Purchasing Power?

By | Commodity ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Leveraged ETFs, Materials ETFs, Natural Resources ETFs | One Comment

The worldwide solution to fight deflation is/was government stimulus spending and coordinated rate decreases. Some world powers spent more than others and some spent less intelligently than others. In addition, different central banks cut rates more drastically than their counterparts. Regardless of political camp or economic orientation, there’s near unanimity that the dramatic efforts by the U.S. government are responsible for significant deterioration in the value and credibility of the U.S. dollar. (Review the reasons that a weak dollar has had advantages as well as disadvantages.) Yet one thing that any…

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