It wasn’t that long ago that gold bears were sticking a fork in the yellow metal. And they had several reasons. The $300+ per ounce price drop was not attracting tons of bargain-hunters. What’s more, the SPDR Gold Trust (GLD) had fallen below its 200-day trendline for the first time since 2009. That said, precious metals have reclaimed their luster [...] [...more]
For better or for worse, there are a wide range of perspectives on the investments that are likely to do well over the next 6 months. And while nobody doubts the severity of the Eurozone crisis, each seems to see different opportunities in light of costly euro-baggage. One portfolio manager believes that U.S. equities will remain [...] [...more]
At the time of this commentary, the S&P 500 is down -1% in 2011. The SPDR S&P 500 Trust (SPY), however, reinvests its dividends. It follows that SPY is actually up a “skohsh” with a 0.3% gain. Is it possible that you could have been more successful? Many would say, “Sure… as long as you know [...] [...more]
Over the weekend, Germany and France presented a unified front on recapitalizing European banks. Not surprisingly, risk assets clear across the globe rocketed higher on Monday, 10/10/11. In fact, most believe that a TARP-like response for protecting “too big to fail” financial institutions is the best way to avoid a rash of sovereign debt defaults, a worldwide recession as well as depreciating risk [...] [...more]
The iShares MSCI Emerging Market Fund (EEM) and the Vanguard Emerging Market Fund (VWO) have both plummeted roughly -30% since late April-early May highs. What’s more, these popular exchange-traded trackers of the MSCI Emerging Market Index have both trailed advanced-nation benchmarks (e.g., S&P 500) for 4 consecutive quarters. When is the last time that emergers have underachieved [...] [...more]
Boeing is finally prepared to deliver its 787 Dreamliner. One writer believes that Aerospace ETFs like iShares DJ Aerospace and Defense (ITA) would be the dreamy way to play the delivery, as opposed to employing the Guggenheim Airline ETF (FAA). PowerShares Aerospace and Defense (PPA) might also capitalize. However, the question worth asking here is whether or not a global economic slowdown [...] [...more]
As many times as gold vigilantes try to short the yellow metal — as often as gold bugs try to take profits near $1900 oz — new buyers still keep coming back. For example, after a 3%+ smackdown on 9/7/11, the SPDR Gold Trust (GLD) managed to rally back 2% on Thursday, 9/8/11. Yet, even as precious metal funds [...] [...more]
At one time, Chancellor Angela Merkel of Germany enjoyed remarkable popularity. Today, her political career may depend on whether or not she persuades enough of her countrymen to finance the ongoing bailout of member countries in the euro-zone. Regardless, iShares MSCI Germany (EWG) has been punished mercilessly. This ETF held the insidious title of worst country ETF of August with single-month losses of nearly 20%. Perhaps ironically, there [...] [...more]
There’s a general tendency for investors in exchange-traded products to place too much faith in a name. For instance, years ago, it wasn’t uncommon for many to seek emerging Asia exposure with Vanguard MSCI Asia Pacific (VPL). After enough folks checked under the hood of the car, VPL became known for its heavy allocation to Japan and Australia — highly [...] [...more]
Asia’s fight against inflation via tight monetary policy has curbed demand for natural resources. Meanwhile, the reduced demand for resources in both Asia and the developed world (Europe/U.S.) has resulted in less exporting from resource-rich countries like Russia and Brazil. In other words, those who have been “long” the emerging market growth story haven’t had much [...] [...more]
