Archive | Dividend ETFs

Stock Market Levity: What Goes Down Must Come Up?

Issac Newton is famous for having said, “What goes up must come down.” He¬†is equally well-remembered for a falling apple striking his noggin, supposedly inspiring¬†the physicist to develop the theory of gravity. Near market tops, bullish investors embrace the notion of an opposite force: levity. They maintain that what goes down must come back up, [...] Continue Reading...


Do Celebrated Fund Managers Know More About the Credit Balloon Than You Know?

There was a time when hedge funds may have offered something unique in the way of performance. You may have been able to make a case for them alongside a mix of stocks and intermediate-term treasury bonds. Over the last three years, however, hedge funds have been downright abysmal. Consider the IQ Hedge Multi-Strategy Index ETF (QAI). It [...] Continue Reading...


5 Inconvenient Stock Truths For The Bold And The Reckless

Here are five big-league reasons to evaluate your current asset mix: 1. Credit Fundamentals Are Deteriorating. What do you remember about the financial crisis in 2008? Perhaps you think about a term like “subprime mortgage.” Or maybe you recall the way home values and stock prices collapsed. Either way, most would agree that households and [...] Continue Reading...


What Is The Most Opportunistic Asset Class Right Now?

Are the new all-time highs in U.S. large cap stocks as big a deal as the media would have you believe? On a year-over-year basis, other asset classes have been more impressive. Bonds via Vanguard Total Bond Market (BND), gold via SPDR Gold Trust (GLD) and the “risk-off” Japanese yen via Currency Shares Yen Trust [...] Continue Reading...


Bonds Say To Stocks, “We’re Just Not That Into You.”

Five years ago, several European countries (e.g., Portugal, Italy, Greece, etc.) appeared as if they might default on their sovereign debt obligations. Gold prices spiked. The Japanese yen soared. U.S. Treasury bond yields plummeted. And the S&P 500 fell nearly 20% before globally coordinated central bank activity resuscitated investor appetite for U.S stocks. Today, Europe appears [...] Continue Reading...


Why You May Want To Sell Into The Post-Brexit Rally

For the better part of six years, between December of 2008 and December of 2014, the Federal Reserve created hundreds of billions of electronic dollar credits to pump up asset prices (e.g., stocks, bonds, real estate. etc.). Theoretically, the subsequent wealth effect would encourage businesses to invest in their growth, consumers to spend on discretionary items [...] Continue Reading...


Correlation Does Not Imply Causation, But It Does Mean ‘Lower Your Stock Allocation’

If you are fortunate enough to have $750,000 equity in a $1,000,000 home, and a fire ravages the property, what is your number one concern? The protection of the equity. Granted, you might be extremely curious about how the fire started. You may even want to know whether or not there was something you could [...] Continue Reading...


Are You Willing To Be The ‘Greater Fool’ By Acquiring More Stocks Today?

It does not matter if stocks are insanely overvalued, as long as there’s a more foolish participant who is willing to pay a higher price. That’s the essence of the “greater fool theory.” And right now, there are more foolish buyers that want “in the game” than risk-reducing sellers who want to scale back. It [...] Continue Reading...


Cash-To-Debt Ratio Demonstrates Why Riskier Assets Have Limited Upside Potential

Cash on corporate balance sheets grew at a 1% pace to $1.84 trillion in 2015. That’s a record level of dollars on the books. On the other hand, debt grew at a clip of nearly 14.8% to $6.6 trillion from $5.75 trillion. That’s a 15% surge in debt obligations. In fact, American companies have grown [...] Continue Reading...


Why Low Interest Rates Do Not Imply Perpetual Increases In Stock Prices

Some investors have come to believe that ultra-low interest rates alone have made traditional valuations obsolete. The irony of the error in judgment? Experts and analysts made similar claims prior to the NASDAQ collapse in 2000. (Only then, it was the dot-com “New Economy” that made old school valuations irrelevant.) The benchmark still trades below [...] Continue Reading...


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