In 2011, the S&P 500 began the year with remarkable fanfare. The benchmark raked in 2.4% in January alone. And yet, in 2012, the S&P 500 has been even more impressive, snagging an eye-popping 4.4%. The reasons for the risk-on gains may be easy to identify, from the notion that U.S. economic prospects are improving to the feeling that Europe will contain [...] Continue Reading...
Copper is one of the world’s most popular metals. It is used in everything from water pipes to radiators to air conditioning systems. Some will say that the industrial metal posesses a Ph.D. in economics… it is that critical to world GDP growth. One country alone is responsible for about 40% of the world’s copper reserves and roughly 35% of copper [...] Continue Reading...
Morningstar used to be a one-trick pony. The company rated mutual funds… and they weren’t particularly good at it. For instance, in 1999, nearly every investment in the Janus stable held 4 or 5 stars. The primary reason? Janus products demonstrated superior performance on a relative basis in most stock categories over popular time frames (e.g., 1 year, 3 year, etc.). Did [...] Continue Reading...
The S&P 500 SPDR Trust (SPY) began 2012 with a bang, collecting 1.6% in the initial session. Yet it was far from the most impressive showing on Tuesday, January 3. Consider the performance of some of the castaways from 2011. Market Vectors Nuclear Energy (NLR) rocketed 2.4%. PowerShares Global Water (PIO) swam upstream for a formidable 3.2%. And Market [...] Continue Reading...
Even an ardent trend-follower who diligently tracks the price of the S&P 500 must be frustrated. Granted, had he/she sold when the heralded benchmark fell below its 200-day moving average in August, he may have protected principal… temporarily. However, the strategy would have left one buying-n-selling for losses in October, November and December. Yikes! Fundamental valuation wonks have [...] Continue Reading...
Economically sensitive sectors like energy failed to generate investor enthusiasm in 2011. Fears of a mammoth depression in Europe as well as a slowdown in China hampered share prices of mainstays from Anadarko Petroleum (APC) to Southwestern Energy (SWN). Looking forward, however, there may be reasons to cheer. China has shifted from restrictive fiscal and monetary policies to more [...] Continue Reading...
Many investors have used precious metals to hedge against weak monetary policies of central banks around the world. Other investors believe that you can’t go wrong with “black gold,” since the global demand for oil will eventually outstrip the available supply. On these simple assessments, those who chose the PowerShares DB Precious Metals Fund (DBP) have seen their selection rise 22% [...] Continue Reading...
Greece might not take the bailout money? Okay… sell everything you’ve got, including that low-risk Vanguard Utilities Fund (VPU). Greece is back on board? Very good… then buy Small Cap Australia (KROO) to profit from the “dollar carry trade.” Investors of all sizes — individual, advisers, money managers, hedge funds – view risk differently in 2011. There’s less focus on tolerable loss through diversification [...] Continue Reading...
Everyone seems to recall the phrase, “irrational exuberance.” The description is most frequently tied to the dot-com frenzy and subsequent bursting of the info-tech bubble at the turn of the century. Yet Fed Chairman Alan Greenspan first uttered the words on December 5, 1996. In fact, it took nearly 4 more years before the stock balloon popped in March of 2000. [...] 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...
