Many member countries of the euro-zone have had to agree to cut spending and increase taxes. Since there is no government stimulus to go around, unpopular austerity measures have placed a noticeable burden on businesses and consumers to grow respective economies. Unfortunately, consumers do not appear to be capable of ending the region’s recession. In the [...] Continue Reading...
Prior to the 2007-2009 financial meltdown in the U.S., risk-takers thoroughly embraced the idea that emerging markets would regularly trounce the developed economies. At times, this simply meant that emerging market stocks would outperform on the upside. At other times, this referred to the ability of “emergers” to hold on to gains… even if U.S. [...] Continue Reading...
Media outlets continue pressing the notion that new cash is entering the stock market from the sidelines. And for the most part, this may be an accurate depiction. Anecdotally, many of my risk-averse money management clients have asked me to move them up from “ultra-conservative” to “moderately conservative.” Similarly, a number of traditional “moderates” are asking [...] Continue Reading...
Over the last 3 months, U.S. small cap stocks as well as foreign and emerging market small caps logged spectacular profits. Moreover, they beat the pants off of larger-cap competition. Consider the recent highs in various price ratios. For instance, SPDR S&P Emerging Market Small Cap (EWX):iShares MSCI Emerging Markets (EEM) demonstrates increasing relative strength for [...] Continue Reading...
The S&P 500 has not merely been resilient in its six consecutive weeks of gains. The celebrated U.S. stock benchmark has been unstoppable in its 8.3% unrealized run-up. Granted, nearly everyone expects a period of mild selling activity (a.k.a. “a breather”). Indeed, history certainly suggests that unbridled enthusiasm usually gets a reality check or three. The [...] Continue Reading...
Rising stock prices often have a way of covering up significant woes. Many journalists and market prognosticators had all but buried the Eurozone debt crisis, declaring that bankrupt member nations had discovered a viable path forward. Not surprisingly, the facts are starting to trip up the rhetoric. Spain’s economy shrank 0.7% in the final quarter of [...] Continue Reading...
In early September, the European Bank (ECB) put its money where Mario Draghi’s mouth was. Specifically, the congregation of decision makers agreed to purchase unlimited amounts of short-term, troubled country bonds in the event that a beleaguered sovereignty requested aid. (Note: A country would have to agree to certain reforms, but… who genuinely wants details?) Apparently, the ECB [...] Continue Reading...
Seeking Alpha’s Jonathan Liss recently spoke with Gary to find out how he planned to use ETFs – including alternative ETF strategies not frequently found in more typical investor portfolios – to position clients in 2013. Jonathan Liss (JL): How would you describe your investing style/philosophy? Gary Gordon (GG): Information processing is the best way to describe [...] Continue Reading...
Why is the budget battle as monumental an issue as it is? Over the last 50 years, the U.S. federal government has spent an average of 20% of its economic output (GDP). It has only averaged 18% of GDP in tax revenue. In other words, for 50 years, our elected politicians have regularly spent more [...] Continue Reading...
Since the summertime lows, a number of themes have gained enormous traction. U.S. real estate is benefiting from ultra-low mortgage rates, limited supply and remarkable demand from overseas buyers. Chinese leadership continues to provide just enough government support to maintain economic targets. And the European Central Bank (ECB) is having success at containing its sovereign [...] Continue Reading...
