Archive | Materials ETFs

When Market Breadth Stinks, Cash Is The Mouthwash

Perma-bulls on the major networks routinely gloss over the reduction in stock market breadth. For example, 60% of the Dow 30 components currently sit below long-term moving averages. When companies like Coca-Cola, Wal-Mart, DuPont, Intel and Verizon are simultaneously suffering from rally fatigue, one might anticipate an eventual breakdown in the gravity-defying direction of popular [...] Continue Reading...


Is It Time To Rethink An Allocation To Gold?

Many investors have given up on the idea that gold merits consideration in their portfolios due to years of depreciation in the dollar price of the yellow metal. For one thing, the SPDR Gold Trust (GLD) is still reeling from 35% bear market losses since the heyday of 2011’s euro-zone crisis. Similarly, sharp increases in [...] Continue Reading...


Bull Market, Bear Market or Barely Moving Market?

Perma-bulls may note that the S&P 500 eked out a 0.4% gain in the first quarter of 2015. They may also choose to ignore warning signs such as the 5th consecutive month of decelerating economic activity in the manufacturing segment. The last time that this happened? 2008. A quick check of the individual sectors that [...] Continue Reading...


Three Implications Of “Shifts” In Fed Policy

A large number of stocks in the Dow Jones Industrials Average have moved lower since the¬†Federal Reserve ended its quantitative easing (QE) program in late October. Telecom giants AT&T (T) and Verizon (VZ) have toiled. Consumer champs Procter & Gamble (PG) and Coca-Cola (KO) have struggled. Commodity-related kings like Chevron (CVX) and Caterpillar (CAT)? They’ve [...] Continue Reading...


When Will Emerging Market ETFs Join The “Risk-On” Party?

When monetary policy leaders spoke in October, investors listened. Federal Reserve Open Market Committee (FOMC) member, James Bullard, suggested that his colleagues consider extending the U.S. central bank’s policy of buying bonds. In a similar vein, the European Central Bank (ECB) revived its activity of purchasing assets in its attempt to stimulate the region’s economy. [...] Continue Reading...


Reduce Your Allocation To Small Cap U.S. Stock ETFs

The Wall Street media may celebrate the 35% intra-day jump in Alibaba shares. They may tout the record highs in the Dow and the S&P 500. However, they are missing the boat on both the economy as well as key stock market divergences. Let us start with the economic environment. The all-important Conference Board’s Leading [...] Continue Reading...


Questions For U.S. Stock ETF Bulls

Have you studied the history of stocks in the U.S? Most people are aware of the crash in 1929 as well as the capital depreciation that occurred through 1932. Yet many may not be aware of the government stimulus in 1933 that helped the market soar 200% over the next four years. While the stimulus [...] Continue Reading...


Home Sales Data Incinerate Confidence In Economically Sensitive Stock ETFs

My wife and I sold two condominiums near the tail end of 2005. We could not justify owning residences that were 40% more expensive to own than to rent. Simply put, it was time to cash in. Due largely to my comfort with the liquidity of market-based securities, I did not wade back into the [...] Continue Reading...


Sector ETFs In 2014 And 2007: The Inconvenient Comparison Feels Like A Bone In The Throat

The S&P 500 has served up a 7%-plus return through the first six-and-a-half months of the year. That’s remarkably impressive when one considers the depth of geopolitical conflict, the implication of structural under-employment, the October end of quantitative easing (QE3) and the strong possibility of a significant change to the legislative branch this November. Naturally, [...] Continue Reading...


The Bears On Gold ETFs Are Wrong

Most of the top 50 economies in the world have engaged in one form or another of monetary stimulus since the start of 2009. Halfway through 2014, most still endeavor to keep interest rates low to encourage borrowing by consumers and businesses; nearly all of those countries or regions also hope to fuel exports with [...] Continue Reading...


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