Category

Retail ETFs

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….

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ETF Investors React With Caution To A Weakening Consumer

By | Biotechnology ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Retail ETFs, Short ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Last week, board members of the Federal Reserve signaled that they may begin hiking overnight lending rates as early as 2015.  A majority of analysts believe that the message is in line with an anticipated acceleration of U.S. economic growth and a more robust expansion. Similarly, economists polled by the National Association for Business Economics (NABE) foresee a 2.6% bounce in consumer spending here in 2014. If we’re going to spend more, however, wouldn’t our paychecks need to grow at a…

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U.S. Stock ETFs Completely Decouple From U.S. Economic Concerns

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Can we really attribute all of the horrendously weak economic data to icy pavements and polar vortexes? The Institute of Supply Management (ISM) services sector report for February recorded its weakest data point in four years (51.6), posting a percentage decline that is the second worst ever. In the same report, a sub-index on jobs showed that services sector employment actually contracted. Meanwhile, after-tax personal income for consumers dropped 2.7% from one year earlier — a decline that rivals the…

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Diversification Across ETF Asset Classes Reclaims Its Mojo

By | Bond ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Real Estate ETFs, Retail ETFs, Semiconductor ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Glum economic data derailed U.S. stocks in January. A mammoth “miss” for manufacturing activity, an unsettling decline in mortgage applications as well as an appalling “net-new-jobs” number were some of the high-profile culprits. At long last, it seemed as if the market might treat bad news as a reason to recoil. Here in February, though, disappointing data have only strengthened the resolve of buy-the-dip investors. Job growth deceleration from a 3-month rolling average of 190,000 down to 150,000 sent U.S….

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Are Consumer ETFs Going The Way Of The VCR?

By | Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Retail ETFs, US Markets and ETFs | No Comments

One of the most commonly cited facts about the U.S. economy is that consumers represent two-thirds or more of GDP growth. Put another way, if Americans are spending, the economy expands. If we rein in our consumption, however, the economy expands at a slower pace and/or contracts. On Thursday (1/30), newswires trumpeted that GDP expanded at a pace of 3.7% between the beginning of July and the end of December. Not only did the economy accelerate in the second half…

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Why The Rich ETFs Keep Getting Richer

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Retail ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

One of the defining debates of our time is what to do about income disparity. Nobody disputes that the wealthy have become much wealthier, particularly over the last five years. At the same time, the poor have become impoverished (e.g., 50 million on food stamps, etc.); meanwhile, middle class families are barely treading water. Yet American leaders have very different ideas about how to bridge the gap. In the left corner, liberal-minded folk see the solution as a simple exercise…

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Sector ETF Reaction to Budget Impasse

By | Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Retail ETFs, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

It has been five trading days since “no-taper” euphoria has passed. In that time, U.S. stock assets have been falling, though the declines have been modest. Most investors continue to believe that a last-minute deal will be struck and that a bearish retreat like the 2011 correction is improbable. Nevertheless, different economic sectors appear to be responding differently to the current landscape. And while previous blueprints for budget uncertainty may have favored non-cyclical segments such as health care and consumer…

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Stocks ETFs Dependent On Consumer Spending May Be In Trouble

By | Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, Retail ETFs, US Markets and ETFs | No Comments

According to Gallup, consumer spending dropped 15% from mid-August and it has been flat since the Federal Reserve’s tapering talk in May. Casual dining expenditures declined 3.5% in July as well as 2.0% in June. Meanwhile, Warren Buffett has been rapidly exiting stocks that are tied to consumer purchasing activity. Many market watchers recognize that there has been enormous strength in big-ticket consumption like auto and home. However, with wage growth stagnant, we’ve been making those acquisitions on credit with…

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The Rich ETFs Get Richer, The Poor ETFs Get Poorer

By | Asia ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Internet ETFs, Latin America ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

The best performing exchange-traded stock funds over the last three months are essentially the same ones that outperformed over the last six months and over one year. The worst performers were consistently weak over all three time periods as well. Simply stated, the rich ETFs are getting richer, while the poor ETFs are becoming impoverished. Consider several examples. Before the Federal Reserve began to discuss tapering its bond buying program in May, one of the most successful sectors was regional…

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Why You Should Ratchet Down Your Risk in Consumer-Oriented ETFs

By | Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Retail ETFs, US Markets and ETFs | No Comments

Bartenders, waiters and other service staff in hospitality and retail comprised more than half of the 162,000 jobs created in July. The Bureau of Labor Statistics (BLS) revised job growth for the previous two months lower. Meanwhile, one of the premier measures of employment trends, the labor force participation rate, hovers near 35-year lows. Job growth over the last 9 months is averaging about 175,000; most of the positions generated occur at the lower end of the salary spectrum. And…

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