Archive | Asia ETFs

3 Seemingly Crazy ETF Ideas

Japan has now registered two consecutive quarters of economic contraction – a persistent absence of growth that defines most recessions. For worse or for better, the world’s third largest economy will simply commit additional electronic money printing resources to acquire more Japanese stock and bond assets. This activity weakens the yen which, in turn, emboldens [...] Continue Reading...


Three Critical ETF Trends That Require Monitoring

When influential managers (e.g., large financial institutions, hedge funds, etc.) borrow low-yielding assets to invest in higher-appreciating, higher-yielding ones, they are engaging in a speculative art. What is the nature of the artwork here in 2014? Borrow as much yen and euro at negligible rates as possible to finance the acquisition of U.S. stocks and [...] Continue Reading...


ETF Flows: Nobody Believes In Europe, Everyone Believes In North America

The SPDR S&P 500 Trust (SPY) trades at a P/E (trailing 12 months) of 18.64 and a P/B of 2.7. The average P/E ratio since the 1870’s is roughly 15, while the current P/B is higher than 82% of the bull market tops since the mid-1920s. Although several may try to describe the U.S. stock market [...] Continue Reading...


When Will Emerging Market ETFs Join The “Risk-On” Party?

When monetary policy leaders spoke in October, investors listened. Federal Reserve Open Market Committee (FOMC) member, James Bullard, suggested that his colleagues consider extending the U.S. central bank’s policy of buying bonds. In a similar vein, the European Central Bank (ECB) revived its activity of purchasing assets in its attempt to stimulate the region’s economy. [...] Continue Reading...


Why Did ETFs Become So Popular? Fewer Folks Are Buying The Hold-N-Hope Hype

Exactly how long should a buy-n-hold investor “hold?” For example, if you held the Dow Jones Industrials Average from 1916 through 1981, would you have made money in those 65 years? Not from inflation-adjusted price appreciation. Here are the returns: The above-mentioned data represent 65 years of buy-n-hold angst. Granted, naysayers might say that the dates have [...] Continue Reading...


It Is Not Too Late To Hedge Against Stock ETF Risk

Since October of 2011, the US. stock market has not only been resilient, it has repelled more water than Gore-Tex. The pullbacks in 2012, 2013 and the first eight months of 2014 have been unrepentant buying opportunities. The current downpour that began in mid-September, however, has presented bears with more compelling reasons to sell. Market valuations [...] Continue Reading...


Are All ETF Correlations Barreling Towards 1.0?

Since the S&P 500 hit 2011 on September 18, it has forfeited 4.1%. That may not represent a significant decline. Yet, the year-to-date damage across an array of 18 popular asset classes is a bit more vexing. Depreciation Across 18 Unique Asset Classes % Off 2014 High 200 Day MA Vanguard Total International Bond (BNDX) 0.0% Above Vanguard [...] Continue Reading...


The Barbell Approach To ETF Portfolio Allocation Continues To Shine

I did not invent the barbell strategy. At the start of the year, I simply offered readers a glimpse into the way that I would be managing ETF assets in the late-stage bull market. First, let me take you back to January when I explained that long-term rates would fall, not rise. The contrarian call had [...] Continue Reading...


What The Daily 1% Price Swings Mean For ETF Investors

In the first half of the U.S. stock market bull (i.e., 2009-2011), 10%-19% corrections occurred annually. That has not been the case in the second half of the bull market. Instead, the frequency as well as the duration of setbacks lessened. There were several 7% sell-offs in 2012, a couple of 5% pullbacks in 2013 [...] Continue Reading...


When Canaries Stop Singing, Riskier ETFs Can Croak

In a recent article at WSJ.com, the author interviews Michael Hartnett, a primary investment guru at Merrill Lynch. The top strategist explains that commodities, emerging markets, high-yield bonds and small-cap U.S. stocks are the “four classic canaries” in the investment mines. Moreover, he warns, the archetypal canaries have stopped singing. Yet Hartnett simply views the absence [...] Continue Reading...


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