Category

Transportation ETFs

Weak Wages and Weaker Manufacturing, But How ‘Bout Those Rate Hike Expectations!

By | Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, Transportation ETFs, US Markets and ETFs | No Comments

I started working at the age of 13. I wanted to be productive. I wanted to make money. Gardener, golf caddy, food deliverer, waiter, bartender, entrepreneur, researcher, analyst, writer, planner, adviser, money manager – I probably spent as much time cursing and complaining as I did whistling. Nevertheless, thirty five years of work contributed to my well-being as well as the well-being of others. Will people from my generation (“Gen X”) leave the workforce anytime soon? Not if we intend…

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When Market Breadth Stinks, Cash Is The Mouthwash

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Materials ETFs, Real Estate ETFs, Retail ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Perma-bulls on the major networks routinely gloss over the reduction in stock market breadth. For example, 60% of the Dow 30 components currently sit below long-term moving averages. When companies like Coca-Cola, Wal-Mart, DuPont, Intel and Verizon are simultaneously suffering from rally fatigue, one might anticipate an eventual breakdown in the gravity-defying direction of popular benchmarks like the Dow and the S&P 500. It is not just companies in the Dow that are struggling. Most of the individual sector investments…

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Rate-Sensitive, Energy-Sensitive Sectors Now Down 10%-Plus

By | Biotechnology ETFs, Bond ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Internet ETFs, Natural Resources ETFs, Real Estate ETFs, Technology ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Bullish borrowers have increased their margin debt to invest in stocks from $445 billion in January to $507 billion today. And why not? The overall price movement for growth sectors of the stock market remains healthy. Flashy sub-segments like cyber-security and biotech continue to soar. For example, I allocated a small portion of moderately aggressive client assets to the Pure Funds ISE Cyber Security ETF (HACK) in early February. Its series of higher lows since its inception lent credibility to…

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3 Reasons June Gloom Is Already Hitting The Markets

By | Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

The theme of maintaining a sunny disposition in spite of genuine concerns has always been prevalent in music. Bobby McFerrin told people not to fear cash flow troubles or paying the rent late in his 80’s chart-topper “Don’t Worry, Be Happy.” Similarly, an animated meerkat from 1994’s The Lion King sang about ignoring one’s worries during the movie’s signature song, “Hakuna Matata.” If you have a significant stake in today’s financial markets, however, it may be challenging to bury your…

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Bull Market, Bear Market or Barely Moving Market?

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Internet ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Semiconductor ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, Utilities ETFs | No Comments

Perma-bulls may note that the S&P 500 eked out a 0.4% gain in the first quarter of 2015. They may also choose to ignore warning signs such as the 5th consecutive month of decelerating economic activity in the manufacturing segment. The last time that this happened? 2008. A quick check of the individual sectors that make up the overall market demonstrates that an increasing number of them are losing ground rather than gaining it. For example, the transporters in the…

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Are Transportation Stocks Hinting At A New Recession?

By | Bond ETFs, Commodity ETFs, Currency ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Natural Resources ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Is a recession around the corner? Some analysts believe the key to that answer resides with transportation companies like Federal Express (FDX), Union Pacific (UNP) and Ryder (R). Specifically, if less and less unfinished goods are being moved to manufacturers, wholesalers and retailers, then one might anticipate sluggish growth, or even economic contraction. How might one determine the collective well-being of transporters? The iShares Transportation Average ETF (IYT) tracks the investment results of an index comprised of airline, railroad and…

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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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Develop Your “They May Never Completely Quit QE” Buy List

By | Biotechnology ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Industrial ETFs, Transportation ETFs, US Markets and ETFs | No Comments

Emerging market ETFs are pulling back sharply from gains that they had achieved in recent months. The countries with the largest drops in the past few days are those that are most dependent on foreign capital to finance their super-sized deficits. In essence, speculation that some of the world’s central banks may pare back the printing of money is adversely affecting funds like WisdomTree India Earnings (EPI) and iShares MSCI South Africa (EZA). The broader-based Vanguard Emerging Markets (VWO) is…

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3 Reasons To Consider Transportation ETFs

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

History tends to punish bull markets when speculative frenzies hover around a narrowing list of stand-outs (e.g., Netflix, First Solar, etc.), an increasing number of initial public offerings (e.g., Twitter, Container Store, etc.) and/or a dramatic rise in margin debt.  Perhaps ominously, all three circumstances currently exist, with margin debt at an all-time peak and IPOs at their highest level since 2007. Clearly, one could add dozens of reasons why the stock market might burst like an unchecked water heater….

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Why Infrastructure ETFs Are Overrated

By | Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Industrial ETFs, International ETFs, Leveraged ETFs, Real Estate ETFs, Special Sectors ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Early in 2007, a prospective client informed me that he would not be placing his $1,000,000 portfolio with my company, Pacific Park Financial. He explained that another Registered Investment Adviser specialized in leveraged emerging market ETFs and that the firm’s performance was amazing. I challenged the individual to better understand daily compounding versus annual compounding, though ultimately, I recognized the infatuation for what it was. Less than two years later, I received a phone call from a familiar voice. My one-time prospect expressed regret for…

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