Archive | Retail ETFs

The Great ETF Rotation Is Accelerating

Back on April 9, I talked about a “Great Rotation” away from momentum plays (e.g., biotech, Internet, small-cap growth, etc.). Where did the smart money go? Demand had been picking up for the least popular asset classes from 2013, including long-dated treasuries, select emerging markets as well as commodities. Five trading weeks have passed since [...] Continue Reading...


ETF Moves You Can Make Before The Crowd Gets Restless

Nobody can tell you when a 10% stock market pullback is imminent. That has not stopped many from issuing erroneous prognostications over the last 31 months. By the same token, no individual can predict when a correction will morph into a 20% bearish sell-off. Yet Marc Faber (“Dr. Doom”) has routinely served up enormously frightful [...] Continue Reading...


Great Rotation? ETFs Encounter A Different Kind Of Shift In 2014

Whatever happened to the “Great Rotation?” You remember the predictive theory that ultra-low yields would encourage investors to rotate out of bonds and into stocks. The notion picked up steam shortly after the Federal Reserve announced its intention to taper its quantitative easing (QE) program in May of 2013. Yield-sensitive assets of all stripes — [...] Continue Reading...


ETF Investors React With Caution To A Weakening Consumer

Last week, board members of the Federal Reserve signaled that they may begin hiking overnight lending rates as early as 2015.  A majority of analysts believe that the message is in line with an anticipated acceleration of U.S. economic growth and a more robust expansion. Similarly, economists polled by the National Association for Business Economics (NABE) [...] Continue Reading...


U.S. Stock ETFs Completely Decouple From U.S. Economic Concerns

Can we really attribute all of the horrendously weak economic data to icy pavements and polar vortexes? The Institute of Supply Management (ISM) services sector report for February recorded its weakest data point in four years (51.6), posting a percentage decline that is the second worst ever. In the same report, a sub-index on jobs [...] Continue Reading...


Diversification Across ETF Asset Classes Reclaims Its Mojo

Glum economic data derailed U.S. stocks in January. A mammoth “miss” for manufacturing activity, an unsettling decline in mortgage applications as well as an appalling “net-new-jobs” number were some of the high-profile culprits. At long last, it seemed as if the market might treat bad news as a reason to recoil. Here in February, though, [...] Continue Reading...


Are Consumer ETFs Going The Way Of The VCR?

One of the most commonly cited facts about the U.S. economy is that consumers represent two-thirds or more of GDP growth. Put another way, if Americans are spending, the economy expands. If we rein in our consumption, however, the economy expands at a slower pace and/or contracts. On Thursday (1/30), newswires trumpeted that GDP expanded [...] Continue Reading...


Why The Rich ETFs Keep Getting Richer

One of the defining debates of our time is what to do about income disparity. Nobody disputes that the wealthy have become much wealthier, particularly over the last five years. At the same time, the poor have become impoverished (e.g., 50 million on food stamps, etc.); meanwhile, middle class families are barely treading water. Yet [...] Continue Reading...


Sector ETF Reaction to Budget Impasse

It has been five trading days since “no-taper” euphoria has passed. In that time, U.S. stock assets have been falling, though the declines have been modest. Most investors continue to believe that a last-minute deal will be struck and that a bearish retreat like the 2011 correction is improbable. Nevertheless, different economic sectors appear to [...] Continue Reading...


Stocks ETFs Dependent On Consumer Spending May Be In Trouble

According to Gallup, consumer spending dropped 15% from mid-August and it has been flat since the Federal Reserve’s tapering talk in May. Casual dining expenditures declined 3.5% in July as well as 2.0% in June. Meanwhile, Warren Buffett has been rapidly exiting stocks that are tied to consumer purchasing activity. Many market watchers recognize that [...] Continue Reading...


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