Archive | Financial ETFs

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...


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...


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...


Do You Have Rally Envy Or Bear Market Anxiety?

For those who have paid attention, the last actual bond purchase by the Federal Reserve occurred on December 18, 2014. Why does the date matter? For one thing, research demonstrated that the expansion and manipulation of the Fed’s balance sheet (i.e., QE1, QE2, Operation Twist, QE3) corresponded to 93% of the current bull market’s gains. [...] Continue Reading...


The Stock Buyback Conundrum: Will Companies Keep It Up Much Longer?

Some facts are more interesting than others. For example, Liz Ann Sonders, chief investment strategist and perma-bull at Charles Schwab, recently acknowledged that “…there has not been a dollar added to the U.S. stock market since the end of the financial crisis by retail investors and pension funds.” Let the reality sink in for a moment. “Mom-n-pop” investors [...] Continue Reading...


Seven Year Bull Market? It May Only Be Six Years and 2 Months After All

What do these 10 companies – Wal-Mart, Macy’s, Kohl’s, Sears, Target, Best Buy, Office Depot, K-Mart, J.C Penney, Gap – all have in common? Each one of them is closing down a slew of retail storefronts. The “talking heads” on CNBC want you to believe that brick-and-mortar woes are merely a reflection of the consumer’s preference [...] Continue Reading...


How Long Will “Risk-Off” Sectors Outperform Riskier Stock and Bond Segments?

Some stock sectors thrive when an economic recovery gains traction. Industrials tend to perform well due to increases in the demand for capital goods. In a similar vein, consumer discretionary companies spike alongside improvements in employment data, where people spend more of the money they make. One can visualize the above-described outperformance of cyclical sectors by charting corresponding ETFs [...] Continue Reading...


Asset Class Update: Is Diversification Still A Free Lunch?

According to Barry Ritholtz of Ritholtz Wealth Management, a frequent contributor to CNBC as well as Bloomberg, “the beauty of diversification is that it’s about as close as you can get to a free lunch in investing.” Since 2011, however, investors who diversified in stocks outside of the U.S. and who diversified across other asset [...] Continue Reading...


All About Nothing: Stock ETFs Celebrate Zero Percent Rate Policy

About a year ago, I was meeting a client at a restaurant in Marina Del Rey, California. The traffic had been mild by Los Angeles County standards, so I arrived in the area early. I stopped in a local coffee shop and sat down in a booth. Lo and behold, in the booth next to [...] Continue Reading...


Allocation Advice For The Do-It-Yourself Investor

At the tail end of 2014, individual investors as well as financial web site editors asked me for predictions on a variety of assets heading into 2015. I answered as many folks as I could. I suggested that foreign developed stocks via iShares Currency Hedged EAFE (HEFA) or Vanguard Europe Pacific (VEA) would likely outperform U.S. [...] Continue Reading...


Free Sign-Up                     ETF Expert RSS Feed  Follow EtfExpert on Twitter

Receive ETF Expert Daily By Email
Get The Weekly ETF Expert Newsletter

Archives