Archive | Dividend ETFs

Economic Lethargy Continues To Bankroll The U.S. Stock Bull

Over the past century, the U.S. stock market typically turned down prior to the onset of a recession. You did not need to predict economic contraction; rather, you monitored the Dow and the S&P 500 because the benchmarks acted like leading indicators of bad times ahead. (Investors checked the market internals to get a sense [...] Continue Reading...


When Market Breadth Stinks, Cash Is The Mouthwash

Perma-bulls on the major networks routinely gloss over the reduction in stock market breadth. For example, 60% of the Dow 30 components currently sit below long-term moving averages. When companies like Coca-Cola, Wal-Mart, DuPont, Intel and Verizon are simultaneously suffering from rally fatigue, one might anticipate an eventual breakdown in the gravity-defying direction of popular [...] Continue Reading...


The Risk Of Owning Stock Assets and Holding Stock Assets Right Now

Hold-n-hope advocates believe that greater gains with stocks over investment grade bonds require nothing more than a commitment to accepting increased volatility. In other words, if you accept the occasional craziness of stock prices, then your rewards will be far more robust than lower yielding debt instruments. But is that even accurate? In the 15-year period [...] Continue Reading...


Rate-Sensitive, Energy-Sensitive Sectors Now Down 10%-Plus

Bullish borrowers have increased their margin debt to invest in stocks from $445 billion in January to $507 billion today. And why not? The overall price movement for growth sectors of the stock market remains healthy. Flashy sub-segments like cyber-security and biotech continue to soar. For example, I allocated a small portion of moderately aggressive [...] Continue Reading...


‘Taper Tantrum’ Round 2? It’s More Serious For Stocks This Time Around

By definition, a recovery is the regaining of something lost. Homeowners have partially (and in some instances, entirely) recovered the equity in their property since the start of the Great Recession. Similarly, market-based securities investors have regained their capital and even accumulated additional paper wealth. The jobs recovery is a bit more challenging to quantify. For [...] Continue Reading...


How Much Faith In The Fed Is Too Much Faith?

What if the U.S. economy fails to pick back up from its dismal first quarter? Then the U.S. Federal Reserve will push off the frequency and the magnitude of any increases in overnight lending rates. That’s what the U.S. stock market is telling investors, as the S&P 500 and NASDAQ break above record highs. That’s [...] Continue Reading...


Government and Corporate Indebtedness Provide Investment Opportunity

The former chairmen of the Federal Reserve, Ben Bernanke, acknowledged his belief that the Fed will not normalize overnight lending rates in his lifetime. Yet Mr. Bernanke neglected to share his contribution to the dilemma by agreeing to acquire trillions of dollars’ worth of treasuries with electronic money during his tenure. The quantitative easing (QE) [...] Continue Reading...


Stocks And Long Bonds Know That The Fed’s In A Pickle

Economists should not have been stunned by downward revisions to job creation for January and February. Similarly, analysts should not have been surprised by the painfully weak jobs data for March – information that confirmed the seriousness of the ailing U.S. economy. Some folks are clinging to the hope that the slowdown is attributable to [...] Continue Reading...


Are Transportation Stocks Hinting At A New Recession?

Is a recession around the corner? Some analysts believe the key to that answer resides with transportation companies like Federal Express (FDX), Union Pacific (UNP) and Ryder (R). Specifically, if less and less unfinished goods are being moved to manufacturers, wholesalers and retailers, then one might anticipate sluggish growth, or even economic contraction. How might [...] Continue Reading...


Why A ‘Rate Hike Tantrum’ Will Not Kill Bond ETFs in 2015

The 10-year Treasury note is the most recognizable, and most important, debt instrument in the world’s financial system. It is vital to foreign jurisdictions, banks and investors as a way to gain exposure to the U.S. dollar as well as interest payments backed by the full faith and credit of the U.S. federal government. Stateside, [...] Continue Reading...


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