Bank ETFs have been hammered over the last 12 months. “Robo-stamping” of foreclosure paperwork has only added to the anxiety over light revenue, declining trading profits, limited lending activity, as well as FINREG “reform.” Conversely, many income investors have profited from an incredible 2010 rally in bonds. However, the premium to own U.S. Treasury Bonds may be signalling [...] [...more]
You can fall in love with your wife, your children, your dog… even your New York Giants football team. But you should never fall in love with any of your investments. I can’t say that any one person gave me this advice. I can say that I’ve adhered to its core message since the ‘87 crash. It [...] [...more]
Whether the headlines address national currencies, raw materials or natural resources companies, you’re likely to read something about Asia. Not surprisingly, the upbeat commentary on Asian countries typically extends to exchange-traded funds. For example, in a recent feature here at ETF Expert, Gary Gordon showed how Asian ETFs have been less risky as well as more rewarding. Both! Should Emerging Market ETFs tied [...] [...more]
On the day that China announced a willingness to let its currency (a.k.a. yuan, renminbi) appreciate, there was a fair amount of crowing from the “West.” In essence, many news outlets proffered an erroneous belief that relentless developed world pressure had finally caused China to blink. Ridiculous! I was very quick to point out that China was entirely [...] [...more]
Tom Lydon proposed that defense cuts by the U.S. government could actually help positions like the Aerospace and Defense ETF (ITA). If you agree that budget cuts will actually help Aerospace and Defense ETFs, should you bolster your exposure to the sector? Or, should you first get a look at ETFs that may determine the overall direction of U.S. stock assets? Defense Budget [...] [...more]
U.S. markets initially soared on the news that China would allow its currency to appreciate against world currencies. Yet the countries that will benefit the most from a yuan reevaluation are the neighbors throughout Asia. Erroneously, there are folks who believe that China is bowing to developed world pressure prior to the G-20 summit. Anyone who has spent enough [...] [...more]
Not every investment will make you money. And even those that do… they may not have been worthy of the ETF risks you are taking. Here are 3 areas that I continue to avoid: 1. Solar Energy. It’s just not happening for the “sun.” Neither Claymore Global Solar (TAN) nor Market Vectors Global Solar (KWT) have managed to [...] [...more]
Hugh Young, managing director of Aberdeen Asset Management Asia, sees Asia leading global growth in 2010. Mr. Young explains that Asia is experiencing increased consumer demand, less reliance on exports as well as lower levels of personal, corporate and government debt compared to developed nations. I strongly doubt you’d hear many voices disputing the economic facts as they are. You might, however, question the conclusions [...] [...more]
According to Bespoke, the NASDAQ is up 45% in 2009 and only down 18% since the October 2007 market highs. The S&P 500 in 2009 has garnered a respectable 25% in 2009. However, it is still down 28% from the 2007 peak. Do these numbers indicate that technology ETFs, both here and abroad, may be setting up [...] [...more]
I have to hand it to the Economist… they spin a great yarn. They’ve noted that the Asia Development Bank (ADB) is more optimistic about Asia’s growth for 2010 today than how they felt in March of 2009. Well… first of all, who isn’t a bit more optimistic about GDP growth forecasts today than they may [...] [...more]
