Category

Technology ETFs

Don’t Blame Minsky If Your Portfolio Value Crumbles

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Retail ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Remember when the financial markets believed that tax cuts, regulatory reform and infrastructure spending would rev up the economic growth engine? The dollar surged. Bonds cratered. And stocks broke out of a 22-month collective funk. Yet expectations that a “business-friendly” Trump will offset higher borrowing costs have faded considerably. Consider the flattening of the yield curve. The spread between shorter term 2-year Treasury yields and longer-term 10-year Treasury yields is back below a scant 1 percentage point. This is more indicative…

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It’s A Large-Cap Tech World After All

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | One Comment

Apple, Microsoft, Amazon, Facebook and Google (now Alphabet) account for roughly 13% of the S&P 500 SPDR Trust’s (SPY) price movement. The same 5 corporations? 42% of the NASDAQ 100’s (QQQ) price appreciation. The super-sized weighting of prominent tech companies in these benchmark ETFs has resulted in year-to-date gains of 7.1% and 16.6% respectively. Yet the rest of the market’s performance has been flat. Barely positive, in fact. Not sure? Take a look at the performance of small-cap and value-oriented…

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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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Does The Stock Investor Feel Lucky? “Well, Do Ya, Punk?”

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

The broadest definition of a bear market? Stocks descend 20% (rounding up) on a closing-price basis without an intervening bull market (20%) rally. Since 1929, there have been 25 bears with an average top-to-bottom return of -35%. Some analysts prefer to exclude the Great Depression. (Should they?) Since World War II, the average bearish demise has been -30%. A quick perusal of the percentage losses reveals a curious truth. The last two bears? The “tech wreck” and the “financial collapse?”…

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Should Stock And Bond Investors Continue Their ‘Hop of Hope?’

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

Stock investors have made a “hop of hope” since the election of Donald J. Trump. Specifically, the new administration’s dedication to the repatriation of foreign profits, the lowering of corporate tax rates and the reduction of onerous regulations may create impressive wage growth as well as momentous economic growth. Keep in mind, year-over-year wage growth and annual GDP growth during the nearly eight years of recovery fell way short of pre-Great Recession growth rates. Wages have grown at a sub-par…

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Threat Assessment: Perils Are Pointing To The Possibility Of Heartbreaking Losses

By | Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Popular Posts, Real Estate ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Stocks rocketed to all-time highs between October 1990 and March of 2000 to register the longest bull market ever (9 years, 5 months). No matter how ridiculous the price-per-stock share – no matter the mindlessness associated with owning U.S. tech stocks at 65 times trailing profits (rather than 15) – the popular view had been that the Internet’s “New Economy” had changed the rules of the game. Unfortunately, it hadn’t. The Nasdaq 100 ETF (QQQ) gave up 80% of its…

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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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Buy Or Sell Tesla (TSLA)? Tell Me What The “Feds” Are Going To Do

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

A client recently asked me for an opinion on Tesla (TSLA). I snickered. Not because I had a negative outlook on the electric vehicle manufacturer. Nor did I laugh because I doubted Elon Musk’s ability to lead. Did I chuckle because auto demand might be peaking? No, that wasn’t it. Or because low gasoline prices may be dampening enthusiasm for alternative energy? Not at all. Perhaps I giggled because eventual profitability for the company remains a huge question mark. Surprisingly, my…

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Why You May Want To Sell Into The Post-Brexit Rally

By | Asia ETFs, Bond ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

For the better part of six years, between December of 2008 and December of 2014, the Federal Reserve created hundreds of billions of electronic dollar credits to pump up asset prices (e.g., stocks, bonds, real estate. etc.). Theoretically, the subsequent wealth effect would encourage businesses to invest in their growth, consumers to spend on discretionary items and the overall economy to improve dramatically. Since the Fed terminated its stimulus program (“QE3”), however, riskier assets have struggled and “risk-off” assets have thrived….

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When You Exit The Stock Market, Don’t Let The Door Hit You On Your Way Out

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

You cannot make this stuff up. The median stock in the S&P 500 has never been more overvalued on price-to-earnings growth (PEG) and price-to-sales (P/S). On a forward price-to-earnings (P/E) basis – where profitability expectations already reflect pie-in-the-sky speculation – the median company’s shares trade in the 96th percentile. That’s pretty darn pricey! Credit Goldman Sachs for the assessment. For that matter, give the financial conglomerate kudos for acknowledging the strong possibility that one might be wise to “sell in…

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