Category

Mid Cap ETFs

Asset Class Update: Is Diversification Still A Free Lunch?

By | 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, Industrial ETFs, International ETFs, Internet ETFs, Large Cap ETFs, Mid Cap ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

According to Barry Ritholtz of Ritholtz Wealth Management, a frequent contributor to CNBC as well as Bloomberg, “the beauty of diversification is that it’s about as close as you can get to a free lunch in investing.” Since 2011, however, investors who diversified in stocks outside of the U.S. and who diversified across other asset types (e.g., commodities, currencies, gold, pipeline partnerships, etc.) have consistently underperformed the plain vanilla approach of owning the S&P 500 SPDR Trust (SPY) alongside a modest…

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Why The S&P 500 Is Likely To Revisit The Correction Lows Near 1870

By | Asia ETFs, Biotechnology ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, US Markets and ETFs | No Comments

In Selling The Drama Or Buying The Rally (8/27), I delineated the way in which 10%-plus price corrections had unfolded under similar circumstances in history (e.g., 1998, 2010, 2011, etc.). Specifically, when the prospects for the global economy are deteriorating, U.S. stock benchmarks typically reclaim about one-half of their losses on “hope rallies.” Afterwards, they retest their lows. The most recent example of the price movement phenomenon is the euro-zone crisis. In late July/early August of 2011, the S&P 500 SPDR Trust…

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How To Invest When You’re Living In The Twilight Zone

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, Health ETFs, Large Cap ETFs, Mid Cap ETFs, US Markets and ETFs | No Comments

Workers have jobs. The headline unemployment rate at 5.1% proves it, right? Yet the percentage of working-aged folks in the labor force at 62.6% represents the lowest employment rate since the late 1970s. Equally troubling? Wages/salaries rose a mere 0.2% in the second quarter. That was the smallest increase since data on wages have been kept. In fact, when adjusted for inflation, median household income has actually dropped since the Great Recession ended in June of 2009, from roughly $55,000…

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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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Are You Selling The Drama Or Buying The Rally?

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

Mini-crash for equities ignites panic selling? Check. The commodity super-slump, ever-widening credit spreads, corporate sales recession and rapid deterioration in market internals throughout June and July assured a reassessment of risk. The brutality and swiftness of that risk reassessment was less destructive for those who respected the dozens of warning signs and acted proactively. Extremely oversold conditions and short covering spark panic buying? Check. As I explained on Tuesday after six days of relentless price depreciation, the S&P 500 had only…

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Greece, Puerto Rico, Or China? Debt-Fueled Excesses At The Heart Of Them All

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

Lately, I have been fielding a host of “which is worse” questions. Is it the possibility of Greece exiting the euro-zone or is it the potential for Puerto Rico to default on its debt? Is it the 25%-plus bearish retrenchment of China’s Shanghai SSE Composite or is it the likelihood of eventual rate hikes by the U.S. Federal Reserve? In truth, investors erroneously focus on which human interest story, or combination of issues, is/are of greatest importance. However, the root…

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‘Taper Tantrum’ Round 2? It’s More Serious For Stocks This Time Around

By | Asia ETFs, Biotechnology ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, US Markets and ETFs | No Comments

By definition, a recovery is the regaining of something lost. Homeowners have partially (and in some instances, entirely) recovered the equity in their property since the start of the Great Recession. Similarly, market-based securities investors have regained their capital and even accumulated additional paper wealth. The jobs recovery is a bit more challenging to quantify. For example, prior to the start of the Great Recession in December of 2007, the headline unemployment rate was 4.7%. A year into the economic contraction,…

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Tactical Asset Allocation Changes? Track the Exchange’s A/D Line

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

I listen to sports talk radio in the morning for entertainment. Today, a popular broadcaster went off script to chat about the ridiculous nature of political correctness, surmising that Americans obsess over social issues when they have few concerns about the economy. He went so far as to describe the economic environment as exceptional, after which, I promptly spilled coffee into my lap. Exceptional? I wondered if perhaps he had confused his brokerage account balance – a paper net worth…

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Understanding Why Rates Must Go Lower Leads To Better Risk-Adjusted Results

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, International ETFs, Mid Cap ETFs, US Markets and ETFs | No Comments

Is there any conceivable path for Japan – the world’s 3rd largest economy – to escape eventual default? The country owes one quadrillion yen ($8.4 trillion U.S. dollars), yet takes in only $460 billion annually. Even at negligible rates, the Japanese government must allocate approximately 40% of its total tax revenue on paying the interest – just the interest – on its government bonds. Is it any wonder that the Bank of Japan (BOJ) has never been able or willing…

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Paper Wealth In Your Accounts Is Great, But Only If You Know How To Protect It

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

One of the more challenging tasks in high finance is making the distinction between “paper wealth” and economic health. Are the two related? Sure. Are they positively correlated. Sometimes, particularly on the downside. Does one matter more than the other? That depends upon who you are. Too frequently, writers will talk about paper wealth like stocks in the same breath that they talk about the country’s gross domestic product (GDP) – a key measure of economic well-being. Erroneously, they imply…

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