Category

Natural Resources ETFs

3 Seemingly Crazy ETF Ideas

By | Asia ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, International ETFs, Natural Resources ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Japan has now registered two consecutive quarters of economic contraction – a persistent absence of growth that defines most recessions. For worse or for better, the world’s third largest economy will simply commit additional electronic money printing resources to acquire more Japanese stock and bond assets. This activity weakens the yen which, in turn, emboldens carry trading institutions to ratchet up the borrowing of the depreciating currency to invest more in the U.S. stock market. As one popular financial blogger…

Read More

Are Energy ETFs The Key To A Sustainable Bull Market?

By | Currency ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Natural Resources ETFs, US Markets and ETFs | No Comments

Theoretically, the prospect for investing in riskier assets should be dim. Consider the weakness in real estate – a major component of the U.S. economy. Mortgage application volume recently fell to its lowest level since 1995. Meanwhile, U.S. stocks are expensive on nearly all of the traditional measures. Cyclically-adjusted P/E ratios suggest that stocks may be overvalued by as much as 40%-50%. The global economic picture is equally disconcerting. Both Europe to Japan require emergency-level stimulus in the form of electronic…

Read More

When Will Emerging Market ETFs Join The “Risk-On” Party?

By | Asia ETFs, China ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, Europe ETFs, Frontier Market ETFs, Materials ETFs, Natural Resources ETFs, Short ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

When monetary policy leaders spoke in October, investors listened. Federal Reserve Open Market Committee (FOMC) member, James Bullard, suggested that his colleagues consider extending the U.S. central bank’s policy of buying bonds. In a similar vein, the European Central Bank (ECB) revived its activity of purchasing assets in its attempt to stimulate the region’s economy. Meanwhile, the Bank of Japan (BOJ) unexpectedly announced its intention to increase its balance sheet by acquiring additional stock and bond assets in 2015. The…

Read More

Questions For U.S. Stock ETF Bulls

By | Bond ETFs, Commodity ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Small Cap ETFs, US Markets and ETFs | No Comments

Have you studied the history of stocks in the U.S? Most people are aware of the crash in 1929 as well as the capital depreciation that occurred through 1932. Yet many may not be aware of the government stimulus in 1933 that helped the market soar 200% over the next four years. While the stimulus may have aided in pulling the markets higher in the absence of organic economic growth, stocks eventually tanked nearly 50% in a ferocious 1-year bear…

Read More

Is The Depreciation Across The Commodity ETF Space Surprising?

By | China ETFs, Commodity ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Natural Resources ETFs, US Markets and ETFs | No Comments

What counts for an economy that primarily depends upon its consumers? Family income needs to increase beyond inflation. Otherwise, families find themselves with less purchasing power and, ultimately, those families spend less. Since the U.S. economic recovery effectively began in July of 2009, inflation-adjusted wages have actually dropped 3%. In other words, at least in terms of purchasing power, families are no better off than when the recession had concluded. A majority of economists have been puzzled by the data…

Read More

Emerging Market ETFs Ascend A Great Wall Of Worry

By | Asia ETFs, Bond ETFs, China ETFs, Commodity ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Latin America ETFs, Natural Resources ETFs, US Markets and ETFs | No Comments

If the U.S. economy and the global economy were truly in good shape, why is the SPDR Gold Trust (GLD) performing so admirably in 2014? If  U.S. economic expansion as well as gross world product were actually succeeding, why is Vanguard Extended Duration Treasury (EDV) the envy of capital appreciation seekers? Lastly, if geopolitical tensions are genuinely easing in Ukraine, why are European ETFs still underperforming other regional stock assets? Europe Still Failing To Launch          …

Read More

The Bears On Gold ETFs Are Wrong

By | China ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Materials ETFs, Natural Resources ETFs, US Markets and ETFs | No Comments

Most of the top 50 economies in the world have engaged in one form or another of monetary stimulus since the start of 2009. Halfway through 2014, most still endeavor to keep interest rates low to encourage borrowing by consumers and businesses; nearly all of those countries or regions also hope to fuel exports with modestly depreciating currencies. Theoretically, tactics designed to devalue a currency as well as push borrowing rates into the basement should strongly benefit precious metals like…

Read More

Are Precious Metals ETFs Dead In The Creek?

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

Flash back to the summer of 2011. The U.S. Congress struggled with a decision to raise the debt ceiling. The “PIGS” (i.e., Portugal, Italy, Greece, Spain) had dramatically overspent, endangering the existence of the euro-zone. Stocks cratered. The CBOE S&P 500 Volatility Index (VIX) soared. Meanwhile, the SPDR Gold Trust (GLD) catapulted 26% in a matter of six weeks. Flash forward to the summer of 2014. Tensions have flared up between Russia and Ukraine, but the conflict has had little…

Read More

The Return Of Energy ETF Dominance?

By | Commodity ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, Natural Resources ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Energy ETFs outperformed the overwhelming majority of competing sector investments in the previous bull market (10/02-10/07). In the early part of the run, the war in Iraq boosted the demand for shares. In the later stages of the rally, emerging economic growth fueled speculative excesses in both the price of oil as well as desire for ownership in exploration and/or oil services companies. The last three years, however, have been remarkably unkind to energy stocks. Whereas the S&P 500 itself…

Read More

Great Rotation? ETFs Encounter A Different Kind Of Shift In 2014

By | Alt Energy ETFs, Biotechnology ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Frontier Market ETFs, Health ETFs, Internet ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Whatever happened to the “Great Rotation?” You remember the predictive theory that ultra-low yields would encourage investors to rotate out of bonds and into stocks. The notion picked up steam shortly after the Federal Reserve announced its intention to taper its quantitative easing (QE) program in May of 2013. Yield-sensitive assets of all stripes — corporate bonds, Treasury bonds, munis, preferred shares, REITs — experienced the type of rapid wealth destruction that is more commonly associated with significant stock slumps….

Read More