Permabears love to talk about a “lack of conviction” on the part of the share purchasing public. Specifically, when upward momentum in stocks occurs on “low volume,” they dismiss the price movement outright. On Monday, 8/30/10, Dow stocks experienced a triple-digit pullback. Meanwhile, the S&P 500 and the NASDAQ both gave up more than 1.5%. However, with the trading [...] Continue Reading...
When the Beatles sang, “Can’t Buy Me Love,” who would have thought that the chorus might some day apply to U.S. stimulus spending. Indeed, the $862 billion hasn’t purchased much in the way of love for new employees. And as it currently stands, longer-term economic growth hinges on love for human resources. Consider an example that involves actual dollars. As part [...] Continue Reading...
Only 1 in 5 investors believe that stocks will rise over the next 6 months. With August unemployment data in the cross-hairs, would a strong showing this week bring bulls back to the ”risk trade?” Or would another “miss” push double-dip campers into Short ETFs? Some investments, however, have bucked the negative news and disheartening trends. Colombia (GXG) is up 42% in 2010… and this frontier [...] Continue Reading...
Higher Yielding ETFs, Bond ETFs, Telecom ETFs, Oil ETFs Click here to listen to the show: 8-29-10 Continue Reading...
In the best of times, stock prices of different economic segments behave differently. So it isn’t surprising to find Sector ETFs travelling unique paths in ”challenging times.” For instance, if we are heading for the dreaded “double dip,” one might expect relative strength in consumer staples and health care. Staples (XLP) is currently showing relative strength, yet [...] Continue Reading...
Index Universe points out that prior to now, investors main access to MLPs was in the form of ETNs. While this satisfied some, others may be excited to learn of the tax treatment and possession in the underlying asset that the new ETF will provide. If you believe that energy-related ETFs may outperform, then take a peek [...] Continue Reading...
The American Association of Individual Investors (AAII) conducts a popular bull-bear survey. The most recent results? Only 1/5 of respondents expect stocks to rise over the next 6 months. When’s the last time that the AAII survey only found 20% bullishness among its participants? Just 4 days before the March 9, 2009 bottom for the U.S. market. It’s a [...] Continue Reading...
Existing home sales, new home sales, mortgage closings — real estate news is uniformly negative. Without government stimulus or tax cuts, housing may once again drag the U.S. economy back into recession territory. How does that play out for the Homebuilder ETFs? Some see them as excellent long-term investments on attractive valuations. Others suggest that they represent [...] Continue Reading...
It’d be irresponsible to suggest that the U.S. is staring down the barrel of a second credit crisis. The 3-month LIBOR rate has dropped from a 2010 peak of .055% to .031% in less than 2 months, suggesting that banks are loaning to one another and that credit may be easing. With that noted, 3 of the most prominent [...] Continue Reading...
For many, the volatility in the stock market is exceptionally difficult to stomach. Yet, with paltry yields as well as the prospect of capital depreciation in Treasury Bond ETFs, investors are searching for a sweeter spot along the risk spectrum to generate some income. On Wednesday, August 25th, 2010, we look to see if Preferred Stock ETFs provide risk-wary investors with a solution. If you don’t [...] Continue Reading...
