Category

Utilities ETFs

Why Are Investors Considering Alternatives To Stocks?

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Natural Resources ETFs, Special Sectors ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Mortgage interest payments as well as non—mortgage interest payments are costing consumers more and more of their disposable income. Consider the non-mortgage variety. Personal interest payments have already recovered levels not seen since the financial crisis. To be sure, interest payments are not the only thing taking a bite out of the cost of living. Oil prices have moved meaningfully higher. According to a 2005 study by the Federal Reserve, oil price increases adversely affect aggregate consumer spending. Is it…

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Are American Stocks Great Again?

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

The U.S Department of the Treasury currently forecasts that the national debt will reach the $25 trillion mark by the 3rd quarter of 2020. That’s just two and a half years from now. What is $25 trillion among American friends? If you combine the debts of every other sovereign state on the planet, you still do not reach $25 trillion. Our nation is a serial debtor. It is easier to dismiss the enormity of the obligation when government is capable of…

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Everything Is Wonderful… Ex-Energy, Ex-Retail And Ex-Banks

By | Biotechnology ETFs, Consumer ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Materials ETFs, Popular Posts, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

As long as central banks around the globe are creating monetary credits at a breakneck clip of $200 billion per month, assets from stocks to real estate to higher yielding securities may have a floor underneath them. In particular, saber rattling in North Korea, government shutdown threats, natural disasters from Harvey to Irma, slower job growth and/or the demise of big name retailers may not cause long-lasting stock declines. And therein lies a problem: extreme complacency. The masses are beginning…

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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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Are You Willing To Be The ‘Greater Fool’ By Acquiring More Stocks Today?

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

It does not matter if stocks are insanely overvalued, as long as there’s a more foolish participant who is willing to pay a higher price. That’s the essence of the “greater fool theory.” And right now, there are more foolish buyers that want “in the game” than risk-reducing sellers who want to scale back. It does not even seem to matter that corporate profits have slumped roughly 18.5% from their peak on 9/30/2014. Certainly, earnings per share growth has not…

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Why Low Interest Rates Do Not Imply Perpetual Increases In Stock Prices

By | Asia ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Utilities ETFs | No Comments

Some investors have come to believe that ultra-low interest rates alone have made traditional valuations obsolete. The irony of the error in judgment? Experts and analysts made similar claims prior to the NASDAQ collapse in 2000. (Only then, it was the dot-com “New Economy” that made old school valuations irrelevant.) The benchmark still trades below its nominal highs (and far below its inflation-adjusted highs) from 16 years ago. Without question, exceptionally low borrowing costs helped drive current stock valuations to extraordinary…

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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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Real Risk Taking Will Not Return Until The Fed Flip-Flops

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

In a strong bull market, higher volatility stocks tend to outperform lower volatility stocks. The PowerShares S&P 500 High Beta (SPHB):iShares USA Minimum Volatility (USMV) price ratio demonstrates how the bull market in equities has been giving way since the highs in the Dow and the S&P 500 one year ago (May 2015). Similarly, in a strong bull market, growth-oriented assets tend to outperform value-oriented holdings. Instead, the iShares Core Growth (IUSG):Vanguard Value (VTV) price ratio illustrates a shift in preference…

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Are U.S. Stocks Really The Only Game In Town?

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

The S&P 500 notched an all-time record high of 2130 on May 21, 2015. That was 10 months ago. Since that date, the popular gauge has suffered two faith-rattling corrections – a 12% decline in August of 2015 and a 14% pullback in February of 2016. Granted, U.S. stocks rallied back to respectable levels after each sell-off. On the other hand, the index has yet to make any bull market progress for the better part of a year. Regrettably, news providers have…

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How Long Will “Risk-Off” Sectors Outperform Riskier Stock and Bond Segments?

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Industrial ETFs, Large Cap ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Some stock sectors thrive when an economic recovery gains traction. Industrials tend to perform well due to increases in the demand for capital goods. In a similar vein, consumer discretionary companies spike alongside improvements in employment data, where people spend more of the money they make. One can visualize the above-described outperformance of cyclical sectors by charting corresponding ETFs over the initial six years of the current economic recovery. The Guggenheim S&P 500® Equal Weight Consumer Discretionary ETF (RCD) as well as the Guggenheim…

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