Archive | Large Cap ETFs

What Is The Most Opportunistic Asset Class Right Now?

Are the new all-time highs in U.S. large cap stocks as big a deal as the media would have you believe? On a year-over-year basis, other asset classes have been more impressive. Bonds via Vanguard Total Bond Market (BND), gold via SPDR Gold Trust (GLD) and the “risk-off” Japanese yen via Currency Shares Yen Trust [...] Continue Reading...


Stocks and Bonds: Which Asset Class Balloon Will Pop First?

In 2013, the S&P 500 closed at a record high at the same time that the 10-year U.S. Treasury bond yield closed at a record low. The reason? The Federal Reserve had been buying hundreds of millions of government bonds as part of its quantitative easing (QE) program. Indeed, back in 2013, Fed leaders determined [...] 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...


Correlation Does Not Imply Causation, But It Does Mean ‘Lower Your Stock Allocation’

If you are fortunate enough to have $750,000 equity in a $1,000,000 home, and a fire ravages the property, what is your number one concern? The protection of the equity. Granted, you might be extremely curious about how the fire started. You may even want to know whether or not there was something you could [...] Continue Reading...


Lower Rates For Longer: Will It Genuinely Benefit Stock Investors?

If the price that one pays for an asset is “fair” or “reasonable,” then one should not doubt having made the transaction. He/she might need to reevaluate whether the current price still reflects a reasonable value at a later date. After all, if a company’s share price has risen dramatically in relation to declining sales [...] Continue Reading...


Zero Rate Hikes In 2016? It Still Won’t Be Enough To Help The Economy Or Stocks

According to the Goldman Sachs Current Activity Indicator (CAI), economic well-being peaked in November of 2014. The erosion from 4.1% down to 1.3% over the last 18 months demonstrates just how vulnerable the U.S. economy currently is. Not surprisingly, economic weakness has taken its toll on stock assets. The S&P 500 has not gained meaningful ground [...] 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...


Are You Willing To Be The ‘Greater Fool’ By Acquiring More Stocks Today?

It does not matter if stocks are insanely overvalued, as long as there’s a more foolish participant who is willing to pay a higher price. That’s the essence of the “greater fool theory.” And right now, there are more foolish buyers that want “in the game” than risk-reducing sellers who want to scale back. It [...] 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...


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