Category

Natural Resources ETFs

Is Waning Enthusiasm For U.S. Dollar-Denominated Assets Temporary?

By | Commodity ETFs, Currency ETFs, Current Affairs and ETFs, ETF Strategy, Natural Resources ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The U.S. economy is in trouble. After expanding at a modest 2.2% in the 4th quarter, economic growth dimmed to a scant 0.2% in Q1 of 2015. Yet privately, many are acknowledging the likelihood that revisions to first quarter gross domestic product (GDP) will indicate a trend toward contraction. Should investors actually concern themselves with economic uncertainty? If recessions are the primary reason for bear markets in stocks, then the answer is obvious: Yes. Still, U.S. stocks have thrived throughout…

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An Energy ETF Resurgence Defies The Naysayers

By | Alt Energy ETFs, Commodity ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Natural Resources ETFs, US Markets and ETFs | No Comments

Maybe you do not know who Rex Tillerson is. Maybe you did not realize that Tillerson, a dinosaur in the energy sector, is the chairman and CEO of Exxon Mobil (XOM) – one of the largest corporations on the planet. The company that he runs had been the largest in the world by market capitalization up until mid-2011 – when smartphone madness effectively handed the crown to Apple (APPL). Strangely enough, Exxon (XOM) briefly reclaimed the title in January 2013…

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Is It Time To Rethink An Allocation To Gold?

By | Bond ETFs, Commodity ETFs, Currency ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Materials ETFs, Natural Resources ETFs, Special Sectors ETFs | No Comments

Many investors have given up on the idea that gold merits consideration in their portfolios due to years of depreciation in the dollar price of the yellow metal. For one thing, the SPDR Gold Trust (GLD) is still reeling from 35% bear market losses since the heyday of 2011’s euro-zone crisis. Similarly, sharp increases in the value of GLD shares at the start of 2014 and 2015 were both met with vicious selling pressure and, eventually, more declines. Perhaps ironically,…

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Bull Market, Bear Market or Barely Moving Market?

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Internet ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Semiconductor ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, Utilities ETFs | No Comments

Perma-bulls may note that the S&P 500 eked out a 0.4% gain in the first quarter of 2015. They may also choose to ignore warning signs such as the 5th consecutive month of decelerating economic activity in the manufacturing segment. The last time that this happened? 2008. A quick check of the individual sectors that make up the overall market demonstrates that an increasing number of them are losing ground rather than gaining it. For example, the transporters in the…

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Are Transportation Stocks Hinting At A New Recession?

By | Bond ETFs, Commodity ETFs, Currency ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Natural Resources ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Is a recession around the corner? Some analysts believe the key to that answer resides with transportation companies like Federal Express (FDX), Union Pacific (UNP) and Ryder (R). Specifically, if less and less unfinished goods are being moved to manufacturers, wholesalers and retailers, then one might anticipate sluggish growth, or even economic contraction. How might one determine the collective well-being of transporters? The iShares Transportation Average ETF (IYT) tracks the investment results of an index comprised of airline, railroad and…

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Three Implications Of “Shifts” In Fed Policy

By | Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Special Sectors ETFs, Telecom ETFs, US Markets and ETFs | No Comments

A large number of stocks in the Dow Jones Industrials Average have moved lower since the Federal Reserve ended its quantitative easing (QE) program in late October. Telecom giants AT&T (T) and Verizon (VZ) have toiled. Consumer champs Procter & Gamble (PG) and Coca-Cola (KO) have struggled. Commodity-related kings like Chevron (CVX) and Caterpillar (CAT)? They’ve been obliterated. In fact, nearly half of the 30 components (13) have lost ground since the Fed stopped acquiring billions in assets with electronically created money….

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Saving Greece? What ETF Investors Should Really Be Focused On

By | Asia ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, Large Cap ETFs, Natural Resources ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

February has been a terrible month for the U.S. economy, but a wonderful month for U.S. stocks. Translation? Investors do not believe that the Federal Reserve will raise overnight lending rates during an economic slowdown. Just how abysmal have the data been so far? Personal spending, construction spending, factory orders, international trade, business inventories, wholesale inventories, consumer sentiment, retail sales and housing starts are just a few of the data points that fell short of expectations. Heck, the Citi Economic Surprise…

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ETFs For The Unquestioned “Wall Of Worry”

By | Bond ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Natural Resources ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The crises of yesteryear almost seem quaint. Did investors really need to fret the possibility of the world’s 44th economy (Greece) exiting the euro-zone back in 2011? The stock market ultimately prevailed. Why did the fiscal cliff, sequestration and government shutdown concerns cause so much anxiety in 2012? U.S. stocks eventually powered ahead by roughly 14% that year. Discussion in 2013 of the Federal Reserve tapering its bond purchases in 2014? Please. Equities not only handled the notion of Fed…

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Three December Charts Are Emulating The September-October Swoon

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

I may expect a few bad trading days. I may even believe that we are likely to see a modest pullback of 3%-4% in U.S. equities before Santa reinvigorates the rally. Nevertheless, a variety of indicators are foreshadowing danger – the same coal mine canaries that preceded the September-October sell-off. For example, high yield corporate bonds (a.k.a. “junk”) are being cremated again. Take a look at the iShares 7-10 Year Treasury (IEF):iShares High Yield Corporate (HYG) price ratio in the…

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Are Stocks Really The Only Game In Town?

By | Alt Energy ETFs, Biotechnology ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Natural Resources ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Contrarians must be thinking about the sustainability of the year-end stock rally after six weeks of remarkable gains. The most recent AAII Investor Sentiment Survey discovered that a whopping 52 percent of respondents were bullish, far surpassing the long-term trend of 39 percent. Meanwhile, nearly $43 billion of inflows poured into U.S. equity ETFs in the prior month – an amount not seen since December of 2007. In truth, contrarians would not be the only investor type with reason to…

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