Boeing is finally prepared to deliver its 787 Dreamliner. One writer believes that Aerospace ETFs like iShares DJ Aerospace and Defense (ITA) would be the dreamy way to play the delivery, as opposed to employing the Guggenheim Airline ETF (FAA). PowerShares Aerospace and Defense (PPA) might also capitalize. However, the question worth asking here is whether or not a global economic slowdown [...] Continue Reading...
In the 5-year bull market from 10/2002 through 9/2007, large-cap indexes typically carried price-to-earnings (P/E) ratios ranging from 17-18. Perma-bears harped on these “valuations” throughout the period, expressing that major benchmarks had not reverted back to a historical average of 15. With the real estate lending bubble bursting in dramatic fashion, stock assets plummeted 40%. Separately, the P/E price tag for the S&P [...] Continue Reading...
One could easily make the case that Van Eck’s Market Vectors ETFs are among the most innovative. The 6th largest provider is responsible for previously untapped segments such as Small-Cap India (SCIF), Small Cap Brazil (BRF) and Small Cap Russia (RSXJ). That said, it is difficult to take a Van Eck executive seriously when he/she explains that the growth in domestic consumption [...] Continue Reading...
In all likelihood, September will mark the 5th straight month of losses for major stock benchmarks. Yet the real downtrend did not begin in May. In fact, several big time indexes hit brand new multi-year highs in July of 2011. In spite of a memory lapse on the part of the mainstream media, markets recovered rather quickly from the May-June [...] Continue Reading...
Is it a loss of confidence in gold that has caused a 10% sell-off over the previous 5 trading sessions? Have under-performing hedge fund managers been forced to liquidate the SPDR Gold Trust (GLD) — hedge fund managers like John Paulson who own super-sized stakes in the world’s largest gold ETF? Data may suggest otherwise. Futures traders have yet to close out [...] Continue Reading...
Foreign bonds have always been one of my favorite areas for genuine diversification. Historically speaking, foreign bonds do not correlate negatively or positively with stocks. Until recently, however, ETF investors had slim pickings. You had vehicles such as SPDR DB International Gov’t Inflation Protected (WIP) as well as SPDR Barclays International Treasury (BWX). Yet WIP and BWX experienced enormous difficulties during [...] Continue Reading...
For an eternity, the Dividend ETF space differed in name only. PowerShares Dividend Achievers (PFM) tracked an index of consistent companies that raised their dividends, as did the S&P SPDR Dividend Aristocrats (SDY). Vanguard High Yield Dividend (VYM)? This didn’t differ markedly from PowerShares High Yield (PEY). WisdomTree may deserve credit for the most creative vehicles, [...] Continue Reading...
Most believe that an agreed-upon plan for the Eurozone will not go far enough to increase economic growth in the region. And nearly everyone expects Greece to “officially” default. What’s more, if tighten-the-belt austerity doesn’t sit well with disenchanted Greek workers, how will it sit in the stomachs of 2-hour, lunch-breaking Italian employees? “Oh Gary,” you say, shaking your head. “Pray tell, sir, your reason for raising [...] Continue Reading...
One of the arguments in favor of Dividend ETFs is that they provide 3.0%-3.5% with the potential for capital appreciation. But the last 3 months have seen more depreciation than the “attractive” yield could offset. With savings accounts and CDs offering 1.0% on the high end, investment-grade U.S. government debt has been a consideration for some folks. Of [...] Continue Reading...
ETF Philosophy, ETF Strategy, ETF Benefits, ETF Drawbacks Click here to listen to the show: 09-25-2011 Continue Reading...
