Archive | Leveraged ETFs

Traders Still See Huge Risks In Financial ETFs

Perhaps the most common question that I receive from¬†financial journalists at popular publications (e.g., Investor’s Business Daily, Smart Money, Business Week, etc.) regards ETF risk. For example, with U.S. stock assets eclipsing their January highs, and coming off a 9.2% correction, writers are asking,¬†”What do you see as the¬†next big hurdle?” In truth, it would be [...] Continue Reading...


ETF Investors Still Running Away From The U.S.A.

In January, ETF fund flows depicted a number of seemingly incongruous events. Investors liked foreign stocks, but hated U.S. stocks. They distanced themselves from the risks of the financial sector, while they embraced the risks of energy and natural resources industries. Meanwhile, foreign currencies became outcasts, yet most forms of U.S. bonds received billions of new assets. Perhaps [...] Continue Reading...


5 ETFs For “Agreeing” With 2010 Economic Forecasters

The Economist polls a wide variety of economic forecasters to come up with consensus readings on inflation (consumer prices) and GDP growth. Similarly, Bloomberg has sought median forecasts on year-end changes on world currencies. Here’s a quick summation on what the business journalists¬†found: 1. Nearly all consumers in the developed world will¬†see rising prices (a.k.a. inflation), though [...] Continue Reading...


ProShares UltraShort Real Estate: Lessons On How NOT To Invest In ETFs

Legitimate criticism of leveraged ETFs is rapidly fading from the blogosphere. In fact, a¬†number of my peers¬†serve up “champagne-and-caviar-like” praise for¬†Leveraged ETFs. There may be¬†a reason for that… and that reason¬†may be¬†a direct or indirect¬†advertising/financial arrangement. In fact, one wonders why there isn’t a warning label with, “Caution: Commentators receive compensation from Leveraged ETF provider.” There’s nothing [...] Continue Reading...


Sector ETF Risk: Health Care ETFs? Financial ETFs?

The Senate recently voted in favor of a health reform bill. Is this good or bad for medical insurers? November new home sales were no better than they were in April. Does that spell doom for homebuilders or serve up new opportunity? Congress raised the deficit debt ceiling to $12.4 trillion. Can the U.S. dollar really handle [...] Continue Reading...


Short Treasury ETFs: A Potential Turning Point For ProShares Fans?

At the end of September, the U.S. economy (GDP) grew at an unexpectedly fast clip of 3.5%. Yet this did little to push U.S. treasury yields higher. At the end of October, the Fed unceremoniously completed its $300 billion purchase of U.S. treasury bonds. In spite of the cessation in buying U.S. government debt, treasury yields remained flat. They [...] Continue Reading...


New iShares Diversified Alternatives Trust ETF (ALT) Doesn’t Cut It… Yet!

Remember the day when an exchange-traded fund was as easy to grasp as the sunshine is bright? No longer! On¬†Monday, 11/16/09, iShares launched¬†the¬†Diversified Alternatives Trust (ALT).¬†Its stated objective? Well… that’s too long for a gifted speaker to say¬†aloud on a single¬†breath of air. (Go ahead… try¬†it for yourself!) “The objective of the Trust is to maximize absolute [...] Continue Reading...


Precious Metals ETFs: A Less Risky Way To Maintain Purchasing Power?

The¬†worldwide solution to fight deflation¬†is/was¬†government stimulus spending and coordinated rate decreases.¬†Some world powers spent more than others and some spent less intelligently than others. In addition, different central¬†banks cut rates more drastically than their¬†counterparts. Regardless of political¬†camp or economic orientation, there’s near unanimity that the¬†dramatic efforts by the U.S.¬†government¬†are responsible for significant deterioration in the value [...] Continue Reading...


Goldman Sachs ETF? Why Broker-Dealer ETF May Be Over-Subscribed!

I usually enjoy articles by John Spence at CBS Marketwatch. And for that matter, Mr. Spence did a fine job representing¬†Morningstar’s John Gabriel on the potential¬†positives¬†for the iShares DJ Broker Dealer Index Fund (IAI). Nevertheless,¬†I’d like to offer an opposing viewpoint on the “high risk, high reward” stamp of approval. Analyst Gabriel is quoted as describing¬†the [...] Continue Reading...


ETFs That Investors Are Buying on Weakness

A 3-day bout of selling pressure? How far back do we need to look to find that short-term trend? Did 9/23 usher in the start of the correction? There are plenty of reasons for the sudden change in sentiment, even as U.S. consumer sentiment hit its highest levels since January of 2008; that is, we’ve got [...] Continue Reading...


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