Category

Materials ETFs

Why Aren’t Stocks Climbing The Wall of Worry Anymore?

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

According to Bank of America’s research team, 87% of prior bull-to-bear transitions involved increases in volatility. That’s not particularly surprising. Anyone who has experienced a stock bear probably remembers months and months of extraordinary price swings. In the current bull portion of the bull-bear cycle (3/09-?), each of the previous corrections offered buying opportunities. For example, there were two 10%-plus volatile price pullbacks during the earnings recession (2015-2016). Earnings per share across the S&P 500 kept shrinking, yet buying the…

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Everything Is Wonderful… Ex-Energy, Ex-Retail And Ex-Banks

By | Biotechnology ETFs, Consumer ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Materials ETFs, Popular Posts, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

As long as central banks around the globe are creating monetary credits at a breakneck clip of $200 billion per month, assets from stocks to real estate to higher yielding securities may have a floor underneath them. In particular, saber rattling in North Korea, government shutdown threats, natural disasters from Harvey to Irma, slower job growth and/or the demise of big name retailers may not cause long-lasting stock declines. And therein lies a problem: extreme complacency. The masses are beginning…

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What Is The Most Opportunistic Asset Class Right Now?

By | Bond ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Real Estate ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Are the new all-time highs in U.S. large cap stocks as big a deal as the media would have you believe? On a year-over-year basis, other asset classes have been more impressive. Bonds via Vanguard Total Bond Market (BND), gold via SPDR Gold Trust (GLD) and the “risk-off” Japanese yen via Currency Shares Yen Trust (FXY) have all outperformed the S&P 500 SPDR Trust (SPY). Vanguard REIT ETF (VNQ) that captures a wide range of real estate investment trusts has…

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Why Stocks Are Getting Riskier By The Day

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, International ETFs, Materials ETFs, Retail ETFs, US Markets and ETFs | No Comments

The central bank of the United States (a.k.a. the Federal Reserve) may hike its overnight lending rate in December. Committee members are also discussing plans to phase out the reinvestment of principal on balance sheet securities. Translation? Borrowing costs are set to move higher. The Fed is tightening for the first time in nearly a decade. In so doing, it is implicitly signaling faith in the U.S. economy’s ability to accelerate. The question investors might want to ask is whether…

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All About Nothing: Stock ETFs Celebrate Zero Percent Rate Policy

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Internet ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

About a year ago, I was meeting a client at a restaurant in Marina Del Rey, California. The traffic had been mild by Los Angeles County standards, so I arrived in the area early. I stopped in a local coffee shop and sat down in a booth. Lo and behold, in the booth next to me, Jerry Seinfeld had been interviewing Jim Carrey for a “webisode” of the popular online show, Comedians In Cars Getting Coffee. The reason that I bring this…

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The Stock Market’s Best Shot? A Fed Promise To Move Slower Than A Three-Toed Sloth

By | Asia ETFs, Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Mid Cap ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Consumers, as opposed to manufacturers, represent two-thirds of the U.S. economy. Indeed, Americans love to splurge. We buy sneakers, iPhones, home furnishings, real estate, cars, jewelry, concert tickets, and meals at our favorite restaurants. We even buy chew toys for our pets. Many of us, however, do not have enough cash saved up to acquire the things that we want when we want them. So we borrow. We satisfy our cravings through instruments of debt – credit cards, mortgages, “refis,”…

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Is A Recession Necessary For The S&P 500 To Fall 20% From All-Time Highs?

By | Asia ETFs, Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Materials ETFs, Natural Resources ETFs, US Markets and ETFs | No Comments

Is it possible for a bear market to occur when the U.S. economy is expanding? Certainly. In fact, most bear markets are already well on their way to becoming 20% price declines long before a recession is formerly identified. Consider the most recent bearish retreat (10/07 – 3/09). The National Bureau of Economic Research (NBER) officially declared on 12/1/08 that the U.S. recession had started in December of 2007 – a declaration that came nearly one year after the economic…

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A Market Top? 15 Warning Signs

By | Asia ETFs, Bond ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Stocks are tumbling in Russia, Brazil, Chile, South Africa, Australia and Canada due to economic weakness in China. Meanwhile, the Vanguard Europe ETF (VGK) remains roughly 5.5% off of its May high, as the feel-good effect of $1.3 trillion in European Central Bank stimulus subsides. In truth, risk assets from across the spectrum are fading. Exchange-traded vehicles as diverse as iShares High Yield Corporate Bond (HYG), iShares Russell 2000 (IWM), iPath Commodity (DJP) and Vanguard FTSE Emerging Markets (VWO) are all…

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3 Reasons Why Risk Is Exiting The Debate Stage

By | Bond ETFs, Commodity ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, International ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

More than a handful of people asked me if I would be watching the big debate. 10 candidates. One stage. Which politician will emerge as the clear-cut favorite to win the Republican party nomination? It may surprise some folks, but I have zero interest in the made-for-television event. Each individual will receive about as much air time as Bethe Correia earned in her UFC Title fight against Ronda Rousey. (America’s superstar dropped the Brazilian fighter in 34 seconds.) From my vantage…

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Allocation Advice For The Do-It-Yourself Investor

By | Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Health ETFs, Industrial ETFs, International ETFs, Large Cap ETFs, Materials ETFs, Small Cap ETFs, Technology ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

At the tail end of 2014, individual investors as well as financial web site editors asked me for predictions on a variety of assets heading into 2015. I answered as many folks as I could. I suggested that foreign developed stocks via iShares Currency Hedged EAFE (HEFA) or Vanguard Europe Pacific (VEA) would likely outperform U.S. stocks, due to perceived value, easing of monetary policy and four consecutive years of foreign equity underperformance. (When was the last time that U.S. equities…

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