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Small Cap ETFs

Rationalizing Stock Market Irrationality (Or, The Earth Might Be Flat)

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The repeal-n-replace health care bill needs a “Yes” vote from the House of Representatives on Thursday, March 23rd. With it, the financial markets may move higher on the belief that Trump/Congress will be able to pass corporate-friendly legislation from tax overhaul to regulatory reform. Without it, risk assets may stumble on the fear that political leaders will be unable to provide ambitious stimulus measures down the road. The prospect of lower taxes has always been at the heart of the…

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What If This Is As Good As It Gets?

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

There are a handful of movies that suck me in whenever they come around. Goodfellas. The Godfather. The Shawshank Redemption. Still, there’s only one production where I can never get enough of the main character’s outlandishness. Melvin Udall in As Good As It Gets. He hoards bars of soap as part of an obsessive-compulsive disorder. He sneeringly berates a woman for admiring his work as an author. He even shoves the neighbor’s dog down a laundry chute. I watched the Jack…

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Markets Priced For Perfection Rarely Get What They ‘Price In’

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

It is almost inconceivable. Just 10 years ago, you could purchase a 3-year Treasury and sock away a risk free rate of return of nearly 6%. Right now? A paltry 1.5%. It follows that, today, one must take enormous chances to generate an income stream up and above the pace of inflation. And that’s only if you believe inflation gauges placing the annual rate in the neighborhood of 2%. For example, let’s assume an individual purchases a 5-year Treasury for…

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Why Some Investors Are Selling the ‘Fiscal Stimulus’ News

By | Bond ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

I came across an interesting data set for stock market performance for incoming Presidents of the United States. In their initial month, the results might be described as underwhelming. Upon the November election of Trump, investor hope reigned supreme on everything from corporate tax reduction to Dodd-Frank regulatory restructuring to monumental spending on infrastructure enhancement. Six weeks later? Many may be troubled by the haziness surrounding the specifics. Take the “unaffordable” Affordable Care Act (ACA). A large percentage of citizens and…

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Is The Trump Rally Over? Or Is It Merely Taking A Breather?

By | Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Inflation-adjusted credit card purchasing recently eclipsed inflation-adjusted wage growth by 2.8%. According to Danielle DiMartino Booth, that is the widest margin in the seven years and eight months of economic recovery. Some explain that the above-mentioned reliance on credit for consumption is a sign of confidence – an indication of a healthy desire to spend. Me? I believe middle-class Americans are struggling to get by. Consider the popular notion that America is near “full employment” and that wage growth is…

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Strong Jobs Report? Depends Upon Whom You Ask

By | Bond ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Small Cap ETFs, US Markets and ETFs | No Comments

Bespoke Investment Group provides some of the best investment insight to individual and institutional investors alike. That said, their “tweet” this morning described Friday’s job report as a definitive sign of a tight labor market. The implication? Employment in America is firing on all cylinders. I beg to differ. Let’s begin with several key particulars. Media outlets reported that U-3 unemployment ticked higher from 4.6% to 4.7%. When the “headline” U-3 number goes down, most commentary focuses on a lower…

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Pro-Business Tax Cuts And Fiscal Stimulus Will Not ‘Trump’ Tighter Financial Conditions

By | Asia ETFs, Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, Large Cap ETFs, Popular Posts, Small Cap ETFs, US Markets and ETFs | No Comments

What is GDP per capita? It is the value of all goods and services produced in an economy divided by the number of people living in it. Why is it important? It is one of the premier ways to identify both the comfort level of a country’s citizens at a given moment in time as well as the well-being of citizens over time. At the present moment, people living in the United States have it pretty good. Not quite as…

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Do Stock Sellers Understand Something That Recent Buyers Do Not?

By | Biotechnology ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Popular Posts, Small Cap ETFs, US Markets and ETFs | No Comments

Is the stock market going up because there are more buyers than sellers? No. There are a fixed number of shares in the marketplace. For every buyer of a share, there needs to be a seller of the asset. In fact, a transaction cannot occur without each participant – each buyer and each seller – playing a role in a trade. So why is the U.S. stock market relentlessly powering ahead? Shareholding sellers are only willing to accommodate eager buyers…

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A Secular Bull Market For Stocks? Not Without An Intimidating Bearish Interlude

By | China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Large Cap ETFs, Latin America ETFs, Small Cap ETFs, Technology ETFs, US Markets and ETFs | No Comments

I could not be any prouder of my 20-year old daughter. In the recent semester, she received “straight 7s” while studying abroad at the University of Queensland in Australia. (Those are “As.”) More impressively, within a week of arriving back in the United States this past November, she secured two part-time lab assistant positions. That’s right. My kid works while pursuing her biology degree at the University of California in San Diego. Why am I writing about my daughter’s triumphs?…

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Bought the Super-Charged Growth Rumor? Prepare to Sell the Mediocre Growth News

By | Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, International ETFs, Large Cap ETFs, Popular Posts, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

If I had to identify a half-dozen of my favorite movies, The Shawshank Redemption would definitely make the cut. It may even be on your Top Five list. Why am I bringing it up? In essence, the film produced one of the more inspirational quotes in motion picture history. The hero pens a letter to his incarcerated friend and he included, “Remember, Red, hope is a good thing, maybe the best of things. And no good thing ever dies.” Ironically, hope is not particularly…

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