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Technology ETFs

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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Bearish on Facebook (FB)? You Must Be Out Of Your Mind

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

For a number of real estate speculators, financial leverage is a path to riches. Why buy one property with $500,000 when you can buy five properties with $100,000 down on each? After all, the $2,000,000 in mortgage obligations are little more than a nuisance, particularly when the inflation-adjusted cost of borrowing is free. And the five homes should be worth $600,000 a piece in four years. Heck, the “shrewd” financier would double his/her initial $500,000 to $1,000,000! Naturally, leverage does not…

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Is Unemployment Really 19%? Your Tactical Asset Allocation Should Reflect Economic Reality

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

Several weeks ago, a comment provider ripped into me for being a left-wing nut job. What did I do to draw his ire?  I explained that the tapering of QE3 and the 0.25% rate hike bump – modest stimulus removal efforts on the surface – adversely impacted everything from currencies to commodities, sovereign credit to corporate credit, equity prices to equity valuation. Today, I am taking aim at the 4.9% – an endeavor that may spark angry comments about my right-wing…

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Why The S&P 500’s Record High From Last May Seems So Far Away

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

Some bear markets feature dreadful price catastrophes that occur quickly. At the onset of last decade’s banking crisis, the S&P 500 plummeted close to the requisite 20% bear level in a five month period between October of 2007 and March of 2008. The Federal Reserve joined JP Morgan Chase in bailing out Bear Stearns to provide a brief relief rally. However, the second leg down between May of 2008 and March of 2009 led to the 56% top-to-bottom depreciation of capital…

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Profit Shortage + Economic Weakness + Stimulus Removal = Less Risk Taking

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

Healthy bull market uptrends tend to feature similar risk-taking characteristics. Specifically, market-based participants will invest in a wide range of stock sectors (e.g., industrials, telecom, health care, energy, etc.) and asset types (e.g., large, small, foreign, preferreds, REITs, high yield corporate, convertibles, cross-over corporate bonds, etc.). There is little reason to discriminate because across-the-board risk leads to impressive returns. Late-stage bull markets are different. Fewer and fewer individual stocks succeed; fewer and fewer asset types gain ground. There is more…

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U.S. Stocks In 2016? Keep An Eye On The Global Economy

By | Asia ETFs, Bond ETFs, China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, Technology ETFs, Transportation ETFs, US Markets and ETFs | No Comments

During the previous bull market (10/02-10/07), financial media fawned over the critical importance of diversifying one’s equity exposure across the globe. And why not? Performance for foreign exchange-traded trackers like iShares MSCI EAFE (EFA) and iShares MSCI Emerging Markets (EEM) far surpassed anything the S&P 500 could muster up; developed international markets doubled U.S. capital appreciation while emerging economies catapulted 350%! Indeed, when I spoke at conferences 10 years ago, attendees rarely inquired about companies listed on the NASDAQ or…

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5 Must-See Economic Charts Show Why Stocks May Stumble In 2016

By | Bond ETFs, Consumer ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Everyone has a guilty pleasure or three. Mine? I am addicted to Seth MacFarlane’s “Family Guy.” I cannot get enough of outrageously random references on everything from a pizza place’s version of a salad to writers plying their trade at Starbucks. Underneath it all are characters whose comments are outlandish and whose behaviors are impetuous or harebrained. This morning, a particular exchange in a Family Guy episode is stuck in my head. Peter Griffin is blackmailing his father-in-law about an…

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What Assets Should You Have In Your Moderate Portfolio?

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

Ibbotson Associates provides asset allocation guidelines that span the risk spectrum from conservative to aggressive. The moderate portfolio consists of roughly 42% in U.S. Stock, 18% in Non-U.S. Stock, 35% Fixed Income and 5% in Cash. It follows that investors interested in the static Ibbotson model might employ the following ETFs to achieve the model’s moderate growth and income aim: With flat to slightly negative returns, one could make the case that diversification is working just fine. On the other…

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3 Economic Headwinds That Matter More Than You Think

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

Is the U.S. economy on solid footing? Federal Reserve Chairwoman Janet Yellen seems to think so. In particular, Yellen expressed confidence in household spending as well as job growth during prepared testimony before Congress on Thursday. It is not surprising to see central bank authorities describe current economic circumstances in glowing terms. Later this month, members of the Federal Reserve Open Market Committee (FOMC) hope to hike borrowing costs for the first time in nine years. Unfortunately, the U.S. economy may not…

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Flatter Yield Curve, Narrow Stock Leadership Forewarn Extreme Risk Takers

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

How confident should diversified investors be that U.S. stocks can power ahead without the extraordinary stimulus of quantitative easing (QE) and zero percent interest rate policy (ZIRP)? Not too confident. Stocks that trade on the New York Stock Exchange are down roughly 7.0% from their May highs and down nearly 3.5% since the last QE asset purchase by the Federal Reserve occurred on December 18, 2014.   Some folks are glad to see seven years of extraordinary accommodation come to…

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