Archive | ETF Strategy

Stock ETF Investors Should Track Junk Bond ETF Apathy

Perhaps as long as China is cutting rates and Europe is buying asset-backed securities – and as long as the U.S. maintains its policy of zero percent interest rates – investors can ignore traditional risk in stock assets. Then again, contrarian assessments suggest that participants are closing in on euphoric extremes and credit spreads are [...] Continue Reading...


A Diversified, Safer Way To Hedge Against Stocks Using ETFs

There are plenty of ways that you can hurt a man and bring him to the ground. You can beat him, you can cheat him, you can treat him bad and leave him when he’s down. Queen – Another One Bites The Dust Over the last 12 months, most efforts to hedge against U.S. stock risk have proven [...] Continue Reading...


3 Seemingly Crazy ETF Ideas

Japan has now registered two consecutive quarters of economic contraction – a persistent absence of growth that defines most recessions. For worse or for better, the world’s third largest economy will simply commit additional electronic money printing resources to acquire more Japanese stock and bond assets. This activity weakens the yen which, in turn, emboldens [...] Continue Reading...


Three Critical ETF Trends That Require Monitoring

When influential managers (e.g., large financial institutions, hedge funds, etc.) borrow low-yielding assets to invest in higher-appreciating, higher-yielding ones, they are engaging in a speculative art. What is the nature of the artwork here in 2014? Borrow as much yen and euro at negligible rates as possible to finance the acquisition of U.S. stocks and [...] Continue Reading...


ETF Flows: Nobody Believes In Europe, Everyone Believes In North America

The SPDR S&P 500 Trust (SPY) trades at a P/E (trailing 12 months) of 18.64 and a P/B of 2.7. The average P/E ratio since the 1870’s is roughly 15, while the current P/B is higher than 82% of the bull market tops since the mid-1920s. Although several may try to describe the U.S. stock market [...] Continue Reading...


Are Energy ETFs The Key To A Sustainable Bull Market?

Theoretically, the prospect for investing in riskier assets should be dim. Consider the weakness in real estate – a major component of the U.S. economy. Mortgage application volume recently fell to its lowest level since 1995. Meanwhile, U.S. stocks are expensive on nearly all of the traditional measures. Cyclically-adjusted P/E ratios suggest that stocks may be [...] Continue Reading...


Expect Rate Sensitive ETFs To Extend Their Lead Due To Housing Uncertainty

I have not been able to sell my house. I have lowered the original asking price ($1,139,000) by more than 5%. I have jacked up the commission for buyer agents. None of it matters – million dollar homes throughout Orange County, California are not receiving a whole lot of offers. Granted, real estate is local. What’s [...] Continue Reading...


Keeping More of Your ETF Capital Gains and Income

According to the Social Security Administration, the average monthly benefit for retired workers of 65 years of age is $1,300 per month, or $15,600 per year. Median family income in the United States is currently $54,000. With roughly 20 percent of people near 65 years old having saved zero for retirement, how can these folks [...] Continue Reading...


New 52-Week Highs: Which Stock ETFs Are Shining The Brightest?

In spite of a stock market sell-off that nearly set the S&P 500 back 10%, some stock ETFs have already recovered. That’s right. A handful of funds barely trembled during last week’s frightful liquidation. Shortly thereafter, this intrepid group ascended to record heights. Here are the more notable stock ETFs on the latest 52-Week High list. [...] Continue Reading...


Is It Over? 3 ETF Signals You May Use For Confirmation

Is the global economic landscape healing? Far from it. Does that typically signal good things for the U.S. stock market? No… but the U.S. Federal Reserve is extremely likely to keep overnight lending rates near zero for years to come. That discourages saving, yet encourages borrowing for the purposes of consumption and investment. Zero percent [...] Continue Reading...


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