Category

Mid Cap ETFs

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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ETF Risk Management In The Face Of A Surging U.S. Dollar

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

Historically, when the U.S. dollar surges, forward S&P 500 earnings plummet. In the same vein, the last two times that the world’s reserve currency skyrocketed, the U.S. economy slipped into a recession. Come on, Gary. Do you really think that we have already dipped into recession territory? No, I do not. Yet the idea that the Federal Reserve can permanently prevent an economy (or a stock market) from succumbing to cyclical forces is foolish. In fact, Federal Reserve Open Market Committee…

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Proof Positive That U.S. Stock ETFs Are Not The Only Place To Be

By | Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs | No Comments

Financial professionals are blaming the latest round of risk asset uncertainty on a variety of factors, from the continuing sell-off in oil to the possibility of Greece being kicked out of the euro-zone. Still others are pointing to anxiety over the U.S. Federal Reserve’s intention to raise its overnight lending rate target in mid-2015 – the first move of its kind since December of 2008. Meanwhile, the biggest names in bonds have added fuel to the fire. Bill Gross at…

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Are All ETF Correlations Barreling Towards 1.0?

By | Asia ETFs, Commodity ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Since the S&P 500 hit 2011 on September 18, it has forfeited 4.1%. That may not represent a significant decline. Yet, the year-to-date damage across an array of 18 popular asset classes is a bit more vexing. Depreciation Across 18 Unique Asset Classes % Off 2014 High 200 Day MA Vanguard Total International Bond (BNDX) 0.0% Above Vanguard Short-Term Bond (BSV) -0.1% Above Vanguard Intermediate Bond (BIV) -0.2% Above iShares 20+ Treasury (TLT) -0.4% Above PowerShares Preferred (PFF) -1.0% Above…

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Is The S&P 500 Now Safer Than A Diversified Portfolio?

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, International ETFs, Large Cap ETFs, Mid Cap ETFs, Real Estate ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Both the media and a wide array of financial advisers preach owning a diversified portfolio. Below, I have created a hypothetical asset mix that a moderate growth investor might employ: 30% iShares S&P 500 (IVV) 25% Vanguard Total Bond (BND) 12.5% iShares MSCI EAFE (EFA) 7.5% SPDR S&P Mid-Cap 400 (MDY) 5% SPDR High Yield (JNK) 5% Vanguard Short-Term Bond (BSV) 5% Vanguard Emerging Markets (VWO) 5% iShares Russell 2000 Small Cap (IWM) 2.5% Vanguard REIT (VNQ) 2.5% iShares TIPS…

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Preparing Your ETF Portfolio For Increased Volatility

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

HSBC’s most recent Purchasing Managers’ Index (PMI) for the Chinese economy rose to 50.5 from a final reading of 50.2 in August. The manufacturing sector may be expanding, but the growth is noticeably restrained. Meanwhile, German factories registered their slowest growth in 15 months and the French manufacturing segment continues to shrink. Equally disconcerting, the Japanese economy declined at its worst annual rate since the mayhem of the global credit crisis in the first quarter of 2009. Perhaps ironically, some…

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