Archive | Mid Cap ETFs

If Investors Get More Stimulus, Will They Take More Risk?

The U.S. economy continues to show signs of frailty. U.S. gross domestic product (GDP) expanded at a feeble pace of just 0.7% in the 4th quarter. In the same vein, the Atlanta Fed’s GDP forecast for the first quarter of 2016 is just 1.2%. There’s more. The manufacturing segment of the economy has contracted for four [...] Continue Reading...


Do Historical Comparisons Matter? Strong Similarities Between 1937 And 2015

The case for the continuation of the U.S. bull market heavily rests on the shoulders of steady economic growth and low interest rates (on an absolute basis). Many believe that, as long as these circumstances exist, stocks will provide venerable results. However, market participants might want to consider a similar period in history – a [...] 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...


Why The S&P 500 Is Likely To Revisit The Correction Lows Near 1870

In Selling The Drama Or Buying The Rally (8/27), I delineated the way in which 10%-plus price corrections had unfolded under similar circumstances in history (e.g., 1998, 2010, 2011, etc.). Specifically, when the prospects for the global economy are deteriorating, U.S. stock benchmarks typically reclaim about one-half of their losses on “hope rallies.” Afterwards, they retest [...] Continue Reading...


How To Invest When You’re Living In The Twilight Zone

Workers have jobs. The headline unemployment rate at 5.1% proves it, right? Yet the percentage of working-aged folks in the labor force at 62.6% represents the lowest employment rate since the late 1970s. Equally troubling? Wages/salaries rose a mere 0.2% in the second quarter. That was the smallest increase since data on wages have been [...] Continue Reading...


The Stock Market’s Best Shot? A Fed Promise To Move Slower Than A Three-Toed Sloth

Consumers, as opposed to manufacturers, represent two-thirds of the U.S. economy. Indeed, Americans love to splurge. We buy sneakers, iPhones, home furnishings, real estate, cars, jewelry, concert tickets, and meals at our favorite restaurants. We even buy chew toys for our pets. Many of us, however, do not have enough cash saved up to acquire [...] Continue Reading...


Are You Selling The Drama Or Buying The Rally?

Mini-crash for equities ignites panic selling? Check. The commodity super-slump, ever-widening credit spreads, corporate sales recession and rapid deterioration in market internals throughout June and July assured a reassessment of risk. The brutality and swiftness of that risk reassessment was less destructive for those who respected the dozens of warning signs and acted proactively. Extremely oversold [...] Continue Reading...


Greece, Puerto Rico, Or China? Debt-Fueled Excesses At The Heart Of Them All

Lately, I have been fielding a host of “which is worse” questions. Is it the possibility of Greece exiting the euro-zone or is it the potential for Puerto Rico to default on its debt? Is it the 25%-plus bearish retrenchment of China’s Shanghai SSE Composite or is it the likelihood of eventual rate hikes by [...] Continue Reading...


‘Taper Tantrum’ Round 2? It’s More Serious For Stocks This Time Around

By definition, a recovery is the regaining of something lost. Homeowners have partially (and in some instances, entirely) recovered the equity in their property since the start of the Great Recession. Similarly, market-based securities investors have regained their capital and even accumulated additional paper wealth. The jobs recovery is a bit more challenging to quantify. For [...] Continue Reading...


Tactical Asset Allocation Changes? Track the Exchange’s A/D Line

I listen to sports talk radio in the morning for entertainment. Today, a popular broadcaster went off script to chat about the ridiculous nature of political correctness, surmising that Americans obsess over social issues when they have few concerns about the economy. He went so far as to describe the economic environment as exceptional, after [...] Continue Reading...


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