Add More Stocks To Your Mix? Not Unless This Time Really Is Different

27 May 2016 at 8:36 am by Gary Gordon

Companies primarily generate revenue by selling goods and services. When their sales peak, and subsequently decline, stock prices tend to move lower. Will this time be different? Granted, public corporations represented by the S&P 500 SPDR Trust (SPY) have been able to manipulate perceptions of profitability by surpassing exceptionally low earnings estimates. Yet they’ve been [...] Continue Reading...

Cash-To-Debt Ratio Demonstrates Why Riskier Assets Have Limited Upside Potential

24 May 2016 at 11:31 am by Gary Gordon

Cash on corporate balance sheets grew at a 1% pace to $1.84 trillion in 2015. That’s a record level of dollars on the books. On the other hand, debt grew at a clip of nearly 14.8% to $6.6 trillion from $5.75 trillion. That’s a 15% surge in debt obligations. In fact, American companies have grown [...] Continue Reading...

May 22, 2016 – ETF Expert Radio Podcast

22 May 2016 at 8:00 am by Staff

ETFs & Stock Market Valuations, Gold ETFs, Treasury Bond ETFs, Small Cap ETFs, Foreign ETFs, Currency ETFs, ETFs & Interest Rates Click here to listen to the show: 5-22-2016 Continue Reading...

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

20 May 2016 at 11:06 am by Gary Gordon

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 [...] Continue Reading...

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

17 May 2016 at 11:03 am by Gary Gordon

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 [...] Continue Reading...

May 15, 2016 – ETF Expert Radio Podcast

15 May 2016 at 8:00 am by Staff

ETFs & Stock Market Valuations, Retail ETFs, ETFs & Oil, The Labor Markets & ETFs, Currency ETFs, Treasury Bond ETFs, Growth vs. Value ETFs Click here to listen to the show: 5-15-2016 Continue Reading...

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

12 May 2016 at 2:09 pm by Gary Gordon

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 [...] Continue Reading...

What Happens To ‘Hold-N-Hope’ Portfolios When An Economy Struggles To Expand?

10 May 2016 at 2:02 pm by Gary Gordon

Some analysts may dismiss 115 years of economic data. I do not. In particular, if one averages the results of four respected stock valuation methodologies, one finds that stocks are wildly expensive. Greater irrationality in stock price exuberance only existed during conditions prior to the Great Depression circa 1929 and the tech wreck of 2000. Consider the [...] Continue Reading...

May 8, 2016 – ETF Expert Radio Podcast

08 May 2016 at 8:00 am by Staff

ETFs & Bull Markets, ETFs & The MASH Index, Gold ETFs, Currency ETFs, Treasury Bond ETFs, Muni Bond ETFs, ETFs & Stock Valuations, Europe ETFs, ETFs & The Fed Click here to listen to the show: 5-8-2016 Continue Reading...

Are You Considering “Sell In May, Go Away?”

05 May 2016 at 10:56 am by Gary Gordon

One of the signs that a stock market may be transitioning from a bull to a bear? Participants dismiss exorbitant valuations, cast aside disturbing shifts in technical trends, disregard economic stagnation and scoff at historical comparisons. For instance, it has been 352 days since the Dow Jones Industrials Average registered an all-time record high in [...] Continue Reading...

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