Why Stocks Have Gone Nowhere For 18 Months (And Counting)

03 June 2016 at 10:18 am by Gary Gordon

Some charts are more interesting than others. For example, Rob Isbitts at Sungarden Investment Research pointed out that the three-year return for the S&P 500 has dipped below 30%. Why might that matter? When the three-year return disappointed investors with single-digit annualized gains (< 10% per year) in 2001 and again in 2008, bearish stock sell-offs came [...] Continue Reading...

Treasury Bond Yield Curve Is Telling Stock Investors To ‘Wake Up’

01 June 2016 at 10:51 am by Gary Gordon

How dependent is the U.S. economy on stimulus by the central bank of the United States? Take a look at what has happened in the bond market since the Federal Reserve began to reduce asset purchases as part of its quantitative easing program (“QE3″) in 2014. The spread between longer-term maturity treasuries and shorter-term maturity [...] Continue Reading...

May 29, 2016 – ETF Expert Radio Podcast

29 May 2016 at 8:00 am by Staff

Debt Levels & ETFs, Treasury Bond ETFs, High Yield Bond ETFs, ETFs & Stock Valuations, ETFs & Corporate Revenues, Stock Buybacks & ETFs Please click here to listen to the show. Continue Reading...

Add More Stocks To Your Mix? Not Unless This Time Really Is Different

27 May 2016 at 8:36 am by Gary Gordon

Companies primarily generate revenue by selling goods and services. When their sales peak, and subsequently decline, stock prices tend to move lower. Will this time be different? Granted, public corporations represented by the S&P 500 SPDR Trust (SPY) have been able to manipulate perceptions of profitability by surpassing exceptionally low earnings estimates. Yet they’ve been [...] Continue Reading...

Cash-To-Debt Ratio Demonstrates Why Riskier Assets Have Limited Upside Potential

24 May 2016 at 11:31 am by Gary Gordon

Cash on corporate balance sheets grew at a 1% pace to $1.84 trillion in 2015. That’s a record level of dollars on the books. On the other hand, debt grew at a clip of nearly 14.8% to $6.6 trillion from $5.75 trillion. That’s a 15% surge in debt obligations. In fact, American companies have grown [...] Continue Reading...

May 22, 2016 – ETF Expert Radio Podcast

22 May 2016 at 8:00 am by Staff

ETFs & Stock Market Valuations, Gold ETFs, Treasury Bond ETFs, Small Cap ETFs, Foreign ETFs, Currency ETFs, ETFs & Interest Rates Click here to listen to the show: 5-22-2016 Continue Reading...

Why Low Interest Rates Do Not Imply Perpetual Increases In Stock Prices

20 May 2016 at 11:06 am by Gary Gordon

Some investors have come to believe that ultra-low interest rates alone have made traditional valuations obsolete. The irony of the error in judgment? Experts and analysts made similar claims prior to the NASDAQ collapse in 2000. (Only then, it was the dot-com “New Economy” that made old school valuations irrelevant.) The benchmark still trades below [...] Continue Reading...

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

17 May 2016 at 11:03 am by Gary Gordon

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...

May 15, 2016 – ETF Expert Radio Podcast

15 May 2016 at 8:00 am by Staff

ETFs & Stock Market Valuations, Retail ETFs, ETFs & Oil, The Labor Markets & ETFs, Currency ETFs, Treasury Bond ETFs, Growth vs. Value ETFs Click here to listen to the show: 5-15-2016 Continue Reading...

Real Risk Taking Will Not Return Until The Fed Flip-Flops

12 May 2016 at 2:09 pm by Gary Gordon

In a strong bull market, higher volatility stocks tend to outperform lower volatility stocks. The PowerShares S&P 500 High Beta (SPHB):iShares USA Minimum Volatility (USMV) price ratio demonstrates how the bull market in equities has been giving way since the highs in the Dow and the S&P 500 one year ago (May 2015). Similarly, in a [...] Continue Reading...

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