Demand for foreign bonds in foreign currencies have obliterated analyst expectations. For instance, Wisdom Tree Emerging Market Local Debt (ELD) swelled to nearly $1 billion in net assets in 9 months time. By way of comparison, the dollar-denominated PowerShares Emerging Market Sovereign Debt Fund (PCY) began nearly 3+ years before ELD, though both PCY and ELD have roughly the [...] Continue Reading...
“We’re Number One! We’re Number One!” In truth, the United States may not be able to shout it for too much longer. China’s engine, the world’s second largest economy, is growing at 3x the rate that the U.S. economy is growing. What’s more, the country’s market based securities collectively experienced double-digit annualized returns in the last decade. (The [...] Continue Reading...
Lower Risk Income ETFs, Preferred ETFs, Convertible Securities ETFs, Cash Flow ETFs, Market Pullback ETFs, Dividend ETFs Click here to listen to the show: 5-29-2011 Continue Reading...
On 5/26/11, U.S. stocks rose for a second consecutive day with the S&P 500 closing less than 3% away from multi-year highs. That’s not just a resilient… that’s downright defiant! Consider the macro-economic realities. Japan is fighting its way out of a recession. Europe is contending with stagflation as well as debt downgrades. The U.S. is facing a double-dip in housing and [...] Continue Reading...
Oil demand for China in April jumped 8.3% from the same period in 2010. The gain was the third highest one-month spike on record. Couple China’s demand with Deutsche Bank’s forecast that global demand should remain vibrant throughout the summer, and crude has had little trouble remaining near $100 per barrel. Could United States Oil ETF (USO) or the iPath S&P GSCI Crude Oil TR [...] Continue Reading...
Equity market performance for the world’s 7 largest economies hasn’t exactly been awe-inspiring. Then again, it has been far better than a sharp stick in the eye. Here’s the tale of the tape through 5/25: 7 Largest Economies With Their Corresponding Stock ETFs Approx YTD % U.S S&P 500 SPDR Trust (SPY) 5.7% European Union iShares MSCI EMU (EZU) 8.4% China SPDR S&P China (GXC) 2.9% Japan iShares MSCI Japan [...] Continue Reading...
Chinese equities collectively returned a a jaw-dropping 132% from 2000-2009. At the same time, U.S. stocks gave up a disdainful -24%. In other words, someone buying China in January 2000 would have seen $100,000 grow to $232,000, whereas the U.S.-only investor witnessed $100,000 morph into $76,000. Of course, many believe the Chinese saga to be an aberration – a NASDAQ fairy tale about to turn “Grimm.” For those [...] Continue Reading...
The prevailing wisdom in the financial media? Stocks have been phenomenal performers in 2011, but they’re likely to remain range-bound for a number of months. The reality, however, may be a bit less sensational. Through May 24, here are the approximate results for a number of high profile Stock ETFs: Vanguard ETF Barometers in 2011 (Through 5/24) Approx % Gain Vanguard Total [...] Continue Reading...
The Federal Reserve continue to keep overnight lending rates at all-time lows. For investment grade standouts like Google (GOOG) and Johnson & Johnson (JNJ), the benefits have been enormous. For example, Google recently issued notes at 1.25% for one year and 2.25% for 3 years. Meanwhile, JNJ’s recent two-year offering was the lowest on record. The result? Corporations are able to borrow at a rate that’s lower than annual inflation. [...] Continue Reading...
The emerging market growth story is beautiful in its simplicity. Younger people with increasing amounts of income in industrializing countries should drive demand for more products, services, infrastructure and housing. Of course, the emergers are not without their concerns. They face more vexing inflation than developed economies. They’re more dependent on the natural resources they can or cannot export. [...] Continue Reading...
