How bad is the current correction? It depends upon the assets you currently hold.
Here are the top 8 ETF positions for moderate risk clients at my Registered Investment Adviser, Pacific Park Financial, Inc.:
Moderate Portfolio: Percentages Below Respective Highs
Approx %
Vanguard High Dividend Yield (VYM)
-4.0%
iShares High Yield Corporate Bond (HYG)
-2.5%
iShares S&P Growth Allocation (AOR)
-3.4%
Vanguard Total U.S. Stock Market (VTI)
-6.4%
iShares [...] Continue Reading...
Foreign stocks returned to their winning ways in the first 10 weeks of 2012. By mid-March, however, economic data out of China started to demonstrate sluggishness. A rapid rise in Spanish bond yields began threatening the country’s ability to manage its own finances. And European interbank lending ground to a halt.
Nevertheless, as recently as Tuesday (May 1), many commentators [...] Continue Reading...
On Tuesday, 5/1/2012, CNBC trumpeted the Dow’s highest close since December of 2007. On Wednesday, the media giant celebrated the price-weighted index’s ability to shrug off weaker-than-anticipated employment data in the United States.
There are reasons to be pleased with the progress of U.S. stocks in 2012. My clients continue to benefit from exposure to risk assets like Vanguard High [...] Continue Reading...
There are a variety of ways to interpret stock market volatility. A rising CBOE Volatility Index (VIX) often typifies greater fear on the part of “options” investors such that they require protection against a monstrous sell-off. A widening of the daily trading range on a popular benchmark may also be indicative of explosive moves to the downside or upside. Moreover, upward revisions to the [...] Continue Reading...
There are roughly 1400 exchange-traded vehicles on the U.S. exchanges. And yet, only a small fraction of them (about 5%) can lay claim to $1 billion in assets under management.
These 70-75 influencers often explain the direction of stock, bond, currency and commodity markets. In fact, there have been times when a single asset defines the entire investing landscape.
For example, PowerShares DB [...] Continue Reading...
The Dow and the S&P 500 may have experienced the worst 2-week losses since November. Still, is it really time to panic? When one considers the reality that the major averages are less than -4% from multi-year highs, abandoning stock assets seems a bit premature. That said, you may want to avoid certain investments.
For example, [...] Continue Reading...
Less than two weeks ago, a large number of media writers and analysts were expressing their exuberance for higher stock market highs. Most seemed to ignore the possibility that fewer and fewer corporations were participating in the S&P 500’s accomplishments.
Sell in May and go away? The smart money may have already rebalanced in March… and it’s not like [...] Continue Reading...
Virtually everyone acknowledges that Federal Reserve monetary policy (e.g., 0%-0.25% rate, QE 1, QE II, “Operation Twist,” etc.) has been extremely kind to stocks since early 2009. Yet, bulls and bears debate the impact of Fed policy going forward.
For example, many bulls believe that stocks will continue to excel due to the Fed’s promise to keep rates at exceptionally low levels [...] Continue Reading...
I realize that I may be jumping the March unemployment report gun, but job market conditions in the U.S. may soon hit an economic soft patch. Consider the following:
1. Real Estate Prices Continue To Fall. Even if we are very close to the proverbial bottom, this sobering fact prevents underwater homeowners from selling and relocating [...] Continue Reading...
In the first two months of the year, SPDR Dow Jones Industrials (DIA) garnered 6.5% and the underlying benchmark made a successful run at 13000. It was a phenomenally fast start that persuaded many investors with cash on the sidelines to reconsider.
Perhaps surprisingly, foreign stock ETFs dramatically outperformed domestic counterparts in January and February. For example, Vanguard Emerging Markets (VWO) raked [...] Continue Reading...
