Category

Mid Cap ETFs

Buy The Dip In Long-Term Treasury Bonds To Hedge Stocks?

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Short ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The 10-year Treasury yield pays 15 basis points LESS than the 3-month Treasury yield. That’s rather nutty when you think about it. Even nuttier? 30-year sovereign yields across the globe are LOWER than the Federal Funds Rate (FFR) of 2.38%. Why are bond market investors demanding the safety of lower-yielding, longer-term, sovereign debt? Why do many crave it more than higher-yielding, shorter-term instruments? Investors anticipate that the Federal Reserve will need to slash its overnight lending rate in attempts to stimulate…

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Here’s What Will Cause The Next Recession (Part 2)

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

Each of the last three recessions contained elements of extraordinary financial instability. For example, Savings & Loan (S&L) institutions used federally insured deposits to make reckless real estate loans in the 1980s. When the Federal Reserve raised its overnight lending rate more than 300 basis points between March 1988 and March 1989, a real estate bubble burst, hundreds upon hundreds of S&L’s fell apart, and the 1990-1991 recession damaged livelihoods. Not surprisingly, one finds comparable patterns of financial senselessness in…

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Here’s What Will Cause The Next Recession

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

Financial professionals frequently opine that asset prices are a function of economic conditions. Assets like stocks, bonds and real estate rise in value when the economy is expanding. They fall in value when the economy contracts. The problem with those statements is that they represent a flawed understanding of 21st century credit cycles. In particular, recessionary pressures did not cause the tech wreck (2000-2002) nor the housing collapse (2008-2009); rather, the bursting of each asset bubble sparked the recession that followed….

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All-Time Stock Highs: Why Modest Risk-Renting Will Outshine Extreme Risk-Taking

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Internet ETFs, Large Cap ETFs, Leveraged ETFs, Mid Cap ETFs, Popular Posts, Special Sectors ETFs, US Markets and ETFs | No Comments

There has been a great deal of media hype surrounding new all-time highs in the U.S. stock market. For that matter, there has been a fair amount of puffery when it comes to how well stocks are performing overall. In actuality, we have seen similar levels for the S&P 500 twice before. The S&P 500 traded around the 2925 level in September of 2018 and the 2875 level back in January of 2018. The last 16 months, then, have not…

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Corporations Set Records For Buybacks As Their Insiders Sell

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Popular Posts, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs | No Comments

Tax-cut infused earnings have been solid. The rapid-fire rise of longer-term borrowing costs has slowed considerably. And corporate share buybacks have dwarfed earlier records. In Q2 alone, corporations purchased a staggering $436.6 billion in stock buybacks. That brings the year-to-date total to $670 billion. Similarly, announced S&P 500 buybacks are practically leaping off of the chart. More than most factors influencing market direction, buybacks have kept large-cap stocks from succumbing to legitimate concerns about Federal Reserve policy error, China trade…

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Are The Ultra-Rich Predicting A Stock Market Swoon?

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

I readily acknowledge that I know precious little about the world of art. In fact, I would struggle to distinguish Picasso from Velazquez, Van Gogh from Monet, or DaVinci from Rembrandt. On the other hand, my brain has retained a bit of knowledge about several artists for one reason or another. Not only did I see the 2002 movie on the life of Frida Kahlo, but I attended a Kahlo exhibit in New York. Similarly, whenever I gaze upon a…

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Have You Been Blinded By The Stock Light?

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Popular Posts, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

I may not be a passionate fan when it comes to America’s pastime. Still, baseball is serving up a seventh game of a World Series. It rarely gets better than that. Who would have believed that the Los Angeles Dodgers would be one win away from celebrating their greatest wire-to-wire season since Kirk Gibson’s 1988 team? Who would have imagined that the Houston Astros would be poised to claim their first World Series title in franchise history? In a similar…

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Buy U.S. Stocks Today? Graham Thinks You’re Nuts

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Popular Posts, Short ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Would Warren Buffett’s mentor buy domestic stocks today? Probably not. The father of value investing, Benjamin Graham, would have trouble recommending a single U.S. company’s shares across thousands of possibilities. Need proof? In the fourteenth chapter of The Intelligent Investor, a classic that Mr. Buffett regarded as “…the best book on investing ever written,” Graham offered a seven-step test for stock selection. The criteria include: (1) adequate size with respect to revenue, (2) strong financial condition with respect to liquidity, (3) reasonable…

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It’s A Large-Cap Tech World After All

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | One Comment

Apple, Microsoft, Amazon, Facebook and Google (now Alphabet) account for roughly 13% of the S&P 500 SPDR Trust’s (SPY) price movement. The same 5 corporations? 42% of the NASDAQ 100’s (QQQ) price appreciation. The super-sized weighting of prominent tech companies in these benchmark ETFs has resulted in year-to-date gains of 7.1% and 16.6% respectively. Yet the rest of the market’s performance has been flat. Barely positive, in fact. Not sure? Take a look at the performance of small-cap and value-oriented…

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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….

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