Archive | Technology ETFs

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...


When You Exit The Stock Market, Don’t Let The Door Hit You On Your Way Out

You cannot make this stuff up. The median stock in the S&P 500 has never been more overvalued on price-to-earnings growth (PEG) and price-to-sales (P/S). On a forward price-to-earnings (P/E) basis – where profitability expectations already reflect pie-in-the-sky speculation – the median company’s shares trade in the 96th percentile. That’s pretty darn pricey! Credit Goldman [...] Continue Reading...


Bearish on Facebook (FB)? You Must Be Out Of Your Mind

For a number of real estate speculators, financial leverage is a path to riches. Why buy one property with $500,000 when you can buy five properties with $100,000 down on each? After all, the $2,000,000 in mortgage obligations are little more than a nuisance, particularly when the inflation-adjusted cost of borrowing is free. And the [...] Continue Reading...


Is Unemployment Really 19%? Your Tactical Asset Allocation Should Reflect Economic Reality

Several weeks ago, a comment provider ripped into me for being a left-wing nut job. What did I do to draw his ire?  I explained that the tapering of QE3 and the 0.25% rate hike bump – modest stimulus removal efforts on the surface – adversely impacted everything from currencies to commodities, sovereign credit to corporate [...] Continue Reading...


Why The S&P 500’s Record High From Last May Seems So Far Away

Some bear markets feature dreadful price catastrophes that occur quickly. At the onset of last decade’s banking crisis, the S&P 500 plummeted close to the requisite 20% bear level in a five month period between October of 2007 and March of 2008. The Federal Reserve joined JP Morgan Chase in bailing out Bear Stearns to provide [...] Continue Reading...


Profit Shortage + Economic Weakness + Stimulus Removal = Less Risk Taking

Healthy bull market uptrends tend to feature similar risk-taking characteristics. Specifically, market-based participants will invest in a wide range of stock sectors (e.g., industrials, telecom, health care, energy, etc.) and asset types (e.g., large, small, foreign, preferreds, REITs, high yield corporate, convertibles, cross-over corporate bonds, etc.). There is little reason to discriminate because across-the-board risk [...] Continue Reading...


U.S. Stocks In 2016? Keep An Eye On The Global Economy

During the previous bull market (10/02-10/07), financial media fawned over the critical importance of diversifying one’s equity exposure across the globe. And why not? Performance for foreign exchange-traded trackers like iShares MSCI EAFE (EFA) and iShares MSCI Emerging Markets (EEM) far surpassed anything the S&P 500 could muster up; developed international markets doubled U.S. capital [...] Continue Reading...


5 Must-See Economic Charts Show Why Stocks May Stumble In 2016

Everyone has a guilty pleasure or three. Mine? I am addicted to Seth MacFarlane’s “Family Guy.” I cannot get enough of outrageously random references on everything from a pizza place’s version of a salad to writers plying their trade at Starbucks. Underneath it all are characters whose comments are outlandish and whose behaviors are impetuous [...] Continue Reading...


What Assets Should You Have In Your Moderate Portfolio?

Ibbotson Associates provides asset allocation guidelines that span the risk spectrum from conservative to aggressive. The moderate portfolio consists of roughly 42% in U.S. Stock, 18% in Non-U.S. Stock, 35% Fixed Income and 5% in Cash. It follows that investors interested in the static Ibbotson model might employ the following ETFs to achieve the model’s [...] Continue Reading...


3 Economic Headwinds That Matter More Than You Think

Is the U.S. economy on solid footing? Federal Reserve Chairwoman Janet Yellen seems to think so. In particular, Yellen expressed confidence in household spending as well as job growth during prepared testimony before Congress on Thursday. It is not surprising to see central bank authorities describe current economic circumstances in glowing terms. Later this month, [...] Continue Reading...


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