Why are investors still buying treasuries and short-term investment grade bonds? Many have grown accustomed to the exceptional total returns. As I look out across the 2013 landscape, however, I see less opportunity for investors to score big with a capital appreciation component on taxable U.S. debt or quality (e.g., AAA, AA, etc.) corporate debt. Depending on [...] Continue Reading...
“Fiscal Cliff” headlines have been flickering across the screens of cell phones, notepads and desktops every day. And depending upon the take-home message, investors have been quick on their collective trigger. On Tuesday, Senator Reid expressed doubt about the ability of elected officials to craft an agreement. Stock assets promptly sold off, leaving the S&P 500 [...] Continue Reading...
In 2001, an economist coined an acronym that typified investing in the initial decade of this century. Indeed, “BRIC” became part and parcel of our vocabulary. BRIC regards four of the largest economic powerhouses in the emerging world — Brazil, Russia, India and China. And for investors, it became a must-know concept for success in the 2002-2007 [...] Continue Reading...
Holy Home Depot, Target and eBay! The volume of e-mail offers from traditional and non-traditional retailers this Black Friday has thoroughly overwhelmed my smart phone. (It’s not a genius phone… that’s for certain.) Yet, for all the hoopla surrounding “day-after deals,” investors may want to resist the hype. Bespoke researchers have found that, since 2000, S&P 500 retail stocks [...] Continue Reading...
Value-oriented thinkers have labored to persuade investors to invest in Europe for nearly three years. Specifically, they’ve pushed forward the idea that miraculously low price-to-book ratios offer compelling bargains in European ETFs, in spite of the ongoing sovereign debt crisis and negligible economic growth. However, deep discount investing during financial crises is a recipe for failure. [...] Continue Reading...
The Fiscal Cliff &Â ETFs, Higher Yielding ETFs, Southeast Asia ETFs, Market Rally & ETFs, Market Pullback & ETFs Click here to listen to the show: 11-18-2012 Continue Reading...
In my recent commentary, “An Assault on Yield-Oriented ETFs,” I discussed the reasons why the markets had been punishing income producers as much as capital appreciators. Briefly, tax rate hikes on dividends and distributions may turn out to be more onerous than those for capital gains. Additionally, I encouraged investors who had large cash positions to [...] Continue Reading...
Are we tiring of the fiscal cliff story? Is it becoming cliche to state the obvious… that uncertainty over the resolution of expiring tax breaks and potential spending cuts is adversely affecting the stock market? Perhaps. Yet one avenue that hasn’t received as much digital ink is the possibility that “yield” is turning into a dirty [...] Continue Reading...
Far too frequently, commentators focus on one of two potential outcomes. For example, one writer may explain why riskier assets will navigate the fiscal cliff and rocket substantially higher into the New Year. Meanwhile, another may predict the collapse of market-based investing altogether, with the Dow plummeting 3000 points before Christmas. Greed and fear. Bull and [...] Continue Reading...
When questioning the market’s capacity to overcome obstacles, one should begin by reviewing popular bearish themes. Do they strike a familiar chord or an unfamiliar one? How far off is financial ruin? For example, I almost find myself chuckling at the idea that four more years of Washington gridlock is now being described as a negative [...] Continue Reading...
