Category

Semiconductor ETFs

The Fate Of Emerging Market ETFs In 2012

By | Asia ETFs, Bond ETFs, China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, International ETFs, Semiconductor ETFs, Technology ETFs | No Comments

Popular emerging markets in the BRIC configuration — Brazil, Russia, India, China — suffered through severe bear markets in 2011. Yet far too many writers attribute the 20%-33% declines to Europe’s sovereign debt crisis alone. It is true that the debt mess sent the U.S. dollar higher at the expense of the ruble, “real,” and the rupee. Contagion containment has also damaged the prospects for emerging market companies to export their wares to the Euro-zone. That said, one cannot explain 2000-3000 basis point differences in performance between emerging market stocks and U.S. stocks…

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Tech ETF Dominance In Q4 At The Mercy Of The Eurozone

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Internet ETFs, Semiconductor ETFs, Technology ETFs, US Markets and ETFs | No Comments

Is it possible that commentators have underestimated Warren Buffett’s flexibility? Indeed, the Oracle of Omaha is best known for buying the cheapest names on “boring” brand name institutions, like Coca-Cola (KO), American Express (AXP) and Procter & Gamble (PG). He rarely showed interest in anything remotely “tech.” Yet during the summer of our discontent — when technology shares plummeted alongside double-dip recession fears — Buffett loaded up on International Business Machines (IBM). He now owns more than 5% of “Big Blue.” Clearly, Buffett sees value in certain technology corporations, particularly one…

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Trend Remains Favorable For Defensive Equity ETFs and Yield-Oriented ETFs

By | Biotechnology ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Internet ETFs, Semiconductor ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Many folks are “banking” on a year-end rally. The catalyst? The European Union (EU) will come up with a massive recapitalization (a.k.a. bailout) of their financial institutions. In theory, if we no longer need to fret the collapse of the EU — the solvency of member nations, the functionality of its banks, etc. — investors should be able to return to corporate earnings. And most should like what they see in the overall scheme of things — profitability, reasonable debt levels, revenue growth and plenty of cash. That said, current trends still suggest…

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ETFs That Have Entered Bear Market Territory

By | Current Affairs and ETFs, Europe ETFs, International ETFs, Real Estate ETFs, Semiconductor ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

On 8/2/11, the same day that President Obama signed a bipartisan bill to raise the debt ceiling, the stock market floor collapsed. Specifically, the S&P 500 closed below its 200-day moving average — a technical trendline for stock buying support. Indeed, the heralded benchmark of U.S. stocks hadn’t finished below its 200-day MA since last September. Equally disconcerting, the S&P 500 ended at its lowest ebb for the current year (1254.05). Although a number of investment professionals regard the event as a…

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Uninspired Guidance Does Not Hurt Tech Sector ETFs

By | Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Retail ETFs, Semiconductor ETFs, Technology ETFs, Transportation ETFs, US Markets and ETFs | No Comments

One of the “constant” declarations of the current earnings season? Of those reporting, roughly 3/4 of corporations exceeded profit-per-share estimates. On the other hand, it’s not uncommon for 2/3 to 3/4 of companies to beat lowered expectations; key executives help to create “beatable” numbers. In addition, each of 8 major economic sectors typically have corporations that, historically speaking, raise the earnings-per-share guidance for their stocks. For instance, according to the folks at Bespoke Research, technology corporations historically raise future earnings guidance by 14.3%. Consumer staples…

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Debt Disorder Takes a Toll On Dividend ETFs

By | Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Semiconductor ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs | No Comments

Roughly one hour before bond and stock markets closed on Monday, 7/25/11, congressional Democrats expressed that the House Republican debt plan was a “non-starter” in the Senate. Wince! Six hours later, President Obama spoke to the American people about a potential catastrophe that could see interest rates on credit cards, mortgages and car loans skyrocket. Yikes! And one hour before the markets finished on Tuesday, 7/26/11, the White House threatened the possibility of vetoing the Boehner 2-step approach. Geez! In spite of the…

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Why Can’t Tech ETFs Buy a Break?

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Semiconductor ETFs, Technology ETFs, US Markets and ETFs | No Comments

In the last month, both Linked In (LNKD) and Pandora (P) came to the New York Stock Exchange with an enormous amount of fanfare. Both IPOs held out the promise of a new appreciation for the future of business. And yet, each IPO currently resides below the lowest price on the first day that shares traded. The low for LNKD on its first day on the big board? 80. Unfortuantely, LNKD finished Thursday, 6/23, at 70 — a disappointing -12.5% below its opening day floor price. Pandora (P), the Internet radio company, is off a…

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2011 Sector ETFs Are Following The 2010 Playbook

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

Until recently, scores of gurus had questioned the sector rotation into non-cyclical sectors. April jobs numbers were “phenomenal” and corporate earnings were sensational. Why should investors sell in May and go away? Yet telecom, health care and consumer staples (e.g., toothpaste, peanut butter, etc.) were rocketing up the relative strength percentile rankings. And many analysts explained that the April-May trend had been predicated on bargain-hunting… rather than safe harboring. However, those who those who made the changes to their portfolios probably didn’t expect the initial…

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Sector ETFs: What The “New” Leaders Are Telling Investors

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

It wasn’t that long ago when I criticized terms such as “overbought” and “undervalued.” (See April’s Going Global: Rethinking the Overbought Concept.) In essence, I explained why investors may give more credence to powerful-sounding words than they give to common sense information. With that said, you should look at a sector’s P/E ratio and compare it against the sector’s P/E across time. If SPDR Select Utilities (XLU) typically trades at a P/E multiple of 12, but currently trades at a multiple of 20, you need…

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Technology ETFs Pricing In “Disappointment” This Earnings Season

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Semiconductor ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs | No Comments

Tech underperformed the broader U.S. market in Q1. And historically, the tech sector’s best months don’t typically arrive until Q4. Will Q2 earnings season be able to get the tech train back on track? Probably not. The longest-term Microsoft investors with the patience to clip the 3% dividend coupon may be satisfied. However, “cap app” seekers may not be dancing in the streets. So far, tech guidance has been decidedly mixed. Mobile device manufacturer Nokia warned that they’d miss earnings estimates. Disk-drive component maker Hutchinson explained that Q2 shipments…

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