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Real Estate ETFs

2020 Election: More Than Another Brick In The Wall Of Worry

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, Large Cap ETFs, Popular Posts, Real Estate ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Near the bottom of the 2008 financial collapse, many investors convinced themselves that Barack Obama’s left-leaning ideology would only make things worse for the stock market. They were wrong. Indeed, those folks missed a remarkable opportunity to acquire equities at phenomenal bargains. Leading into the 2016 election, plenty of people believed that Donald Trump’s unpredictable nature and tempestuous style would result in a stock market disaster. They were wrong too. Wall Street quickly warmed up to the prospect for dramatic…

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This Is Your Market. This Is Your Market On Drugs. Any Questions?

By | Asia ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, Industrial ETFs, Large Cap ETFs, Mid Cap ETFs, Real Estate ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

An authoritative figure pulls a chicken egg from a carton. He holds the egg up for the television viewer to see. “This is your brain,” he announces. Then he points to a frying pan and says, “This is drugs.” The man cracks open the egg on the side of the pan. He then spills the viscous contents into the skillet and allows the slop to sizzle. “This is your brain on drugs.” He waits for a second or two to let…

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The Stock Market Bear That Began 19 Months Ago

By | Asia ETFs, Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, International ETFs, Large Cap ETFs, Materials ETFs, Mid Cap ETFs, Real Estate ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Mainstream pundits have been telling stock investors throughout 2019 that it does not matter if long maturity Treasury bonds yield less than short maturity Treasury bonds. They have been explaining that you should ignore the fact that, for the most part, the 10-year yield has been offering less than the 3-month yield since mid-May. However, financial institutions often rely on borrowing money at lower short-term rates and lending at higher longer-term ones. When the spread between short and long flattens,…

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Here Comes The Fun (And The Fed Says, “It’s Alright”)

By | Consumer ETFs, Currency ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Large Cap ETFs, Popular Posts, Real Estate ETFs, US Markets and ETFs | No Comments

One might define absurdity as the quality or state of being ridiculous. Or one can glance at the global quantity of negative-yielding debt. The total? Nearly $14 trillion. Holding a bond to maturity that pays a negative return is insane. Wouldn’t risk-averse folks prefer a 0% return that would come with the embrace of physical cash? Unfortunately, central banks do crazy things. The euro deposit rate is at -0.4%. That means savers and investors could lose more money at a…

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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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Will The ‘Fed Put’ Work On The Next Go-Around?

By | Current Affairs and ETFs, Dividend ETFs, ETF Strategy, Large Cap ETFs, Popular Posts, Real Estate ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The Federal Reserve’s “180-degree turn” has worked swimmingly for borrowers and risk-takers alike. The 10-year yield has dropped from 3.24% to 2.62%. That may encourage households and businesses to lever up with more debt. Meanwhile, stocks are surging upward, reaching for the record heights experienced during the September-October peak. The question investors need to ask themselves now is, “Will the ‘Fed Put’ work on the next go-around? It depends. And it likely depends on whether or not the U.S. is…

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How Long Before Powell Throws In The Rest Of The Towel?

By | Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Real Estate ETFs, Semiconductor ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

It was only a few days ago when the stock market celebrated a Trump-Xi tariff delay. And it was only a few days before that when Federal Reserve Chairman Powell flip-flopped on the extent of rate hiking yet to come. Both of the above-mentioned actualities sent stocks and risk assets soaring higher. And both were expected to serve as tailwinds for a phenomenal December rally. So how did the Dow lose nearly 1600 points in two days, then recover roughly…

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Why The Economic Slowdown Will Rattle Stock Investors

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

The economy, as measured by gross domestic product (GDP), grew at 4.2% in the second quarter. It slowed to 3.5% in the third quarter. Meanwhile, Q4 projections have been coming in closer to 2.9%. An optimistic “take” would be to exclaim that the 2% pace that has been the hallmark of the current expansion is now in the rear-view mirror. For 2018 and beyond, we have kicked it into a higher gear (3%) due to tax cuts and regulation curtailment. A…

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Conspicuous Weakness In Market Internals A Bad Omen For Stocks?

By | Asia ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, International ETFs, Large Cap ETFs, Popular Posts, Real Estate ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

One week ago, FactSet revealed that 250 of the stocks in the S&P 500 had dropped more than 20% from all-time peaks. The index itself, however, had only declined a modest 5% from its record top. Today, there are more indications of market distress. The Russell 2000, a popular small cap barometer, has dropped 13% from its high. The Dow Jones Transportation Average has fallen 13% as well. And the Financial Select Sector SPDR (XLF) is sitting at a 52-week…

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What The Real Estate Cycle May Tell Us About Stocks

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

According to the National Association of Realtors, existing home sales have declined for three consecutive months. Similarly, the year-over-year data have been negative in every month except for February. Existing home sales are hardly the only weak spot in real estate. Sales of new homes fell 5.3% in June. Meanwhile, the Mortgage Bankers Association reported that purchase applications dropped 5% and overall application volume decreased 2.5% (through the week ending July 13). There’s more. Housing permits shrank on a year-over-year…

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