The argument remains exactly the same. Fed policy devalues the U.S. dollar, and a devalued dollar leads to higher inflation. What’s more, the U.S economy’s slow growth won’t be able to command a premium for its double-A rated 30-year treasuries paying a meager 3%. Therefore, treasury bond bears argue, bond prices must fall (and yields must climb). Of course, Bill Gross — and a half-dozen [...] Continue Reading...
Since 7/25/2011, market participants have been dealing with extraordinary volatility. In fact, for the past 11 weeks, the CBOE Volatility Index (VIX) hadn’t closed below a 50-day moving average. Until now, that is. On 10/10/2011, the current price of the VIX closed below a key trendline. In a similar vein, the S&P 500 hadn’t closed above a 50-day MA since 7/27/2011. [...] Continue Reading...
Over the weekend, Germany and France presented a unified front on recapitalizing European banks. Not surprisingly, risk assets clear across the globe rocketed higher on Monday, 10/10/11. In fact, most believe that a TARP-like response for protecting “too big to fail” financial institutions is the best way to avoid a rash of sovereign debt defaults, a worldwide recession as well as depreciating risk [...] Continue Reading...
Telecom ETFs, China Bond ETFs, Apple And ETFs, Brazil ETFs, World ETF Update Click here to listen to the show: 10-09-2011 Continue Reading...
The U.S economy has been faltering. Politicians have been blaming one another. And confidence is about as bad as it gets. However, what you read or hear in the media about recessions and economic progress will not explain the success or failure of stock assets. For example, Australia boasts a mere 5.3% unemployment, the highest interest rates among [...] Continue Reading...
Last month, the mere rumor that China was looking at purchasing Italian bonds sent stocks surging higher. However, it is far more likely that China will take a ”wait-n-see” approach. Consider the contentious nature of international trade and currency disputes between China and the developed world. In response to a widespread belief that China keeps its currency artificially low, the U.S. Senate has been advancing [...] Continue Reading...
The iShares MSCI Emerging Market Fund (EEM) and the Vanguard Emerging Market Fund (VWO) have both plummeted roughly -30% since late April-early May highs. What’s more, these popular exchange-traded trackers of the MSCI Emerging Market Index have both trailed advanced-nation benchmarks (e.g., S&P 500) for 4 consecutive quarters. When is the last time that emergers have underachieved [...] Continue Reading...
In August, a bear had already started to gnaw on the Vanguard Europe Fund (VGK). By September, a sibling began clawing away at the iShares All-Country World Index Fund (ACWI). What about emerging markets? Most of them were being victimized in September too. Perhaps ironically, U.S. assets haven’t quite earned the dubious distinction because the Dow Industrials hasn’t fallen 20% from a recent [...] Continue Reading...
“Window Dressing” And ETFs, End-Of-Quarter And ETFs, Low Volatility ETFs, ETFs And October Click here to listen to the show: 10-2-2011 Continue Reading...
