Archive | Emerging Market 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...


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...


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...


Time In The Markets, Not ‘Timing’ The Markets? At Least Know The Facts

What do China, Japan, India, England, Germany… heck, most of the significant economies around the globe, share in common? Bear market declines in stock prices of 20% or more. Several ETFs demonstrate the breadth of the global depreciation in equities. For example, SPDR EURO STOXX 50 (FEZ) illustrates the doggedness of the downtrend in Europe. [...] Continue Reading...


Why Stocks Have Gone Nowhere For 18 Months (And Counting)

Some charts are more interesting than others. For example, Rob Isbitts at Sungarden Investment Research pointed out that the three-year return for the S&P 500 has dipped below 30%. Why might that matter? When the three-year return disappointed investors with single-digit annualized gains (< 10% per year) in 2001 and again in 2008, bearish stock sell-offs came [...] 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...


When You Exit The Stock Market, Don’t Let The Door Hit You On Your Way Out

You cannot make this stuff up. The median stock in the S&P 500 has never been more overvalued on price-to-earnings growth (PEG) and price-to-sales (P/S). On a forward price-to-earnings (P/E) basis – where profitability expectations already reflect pie-in-the-sky speculation – the median company’s shares trade in the 96th percentile. That’s pretty darn pricey! Credit Goldman [...] Continue Reading...


Why Should Stock Investors Pay 2016 Prices For 2012 Profits?

Since the S&P 500 logged an all-time record (2130.82) 11 months ago, there have been two violent price sell-offs of more than 10%. On both occasions, the popular index rallied back to recapture the 2100 mark. Yet the unknowable question still remains; that is, will the bull market demonstrate its durability by notching a new [...] Continue Reading...


Should Investors Take Notice When Reward Prospects Diminish?

The world’s central banks devise conventional and unconventional ways to depress interest rates. The impact? Consumers purchase goods and services on credit with favorable financing terms. Corporations issue low-yielding debt in order to buy back shares of their own stock. And governments issue low-yielding treasuries to continue spending far more than they generate in tax [...] Continue Reading...


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