Jim Rogers may be the quintessential investment guru, but he isn’t immune to questionable calls. Throughout 2011, Mr. Rogers has been particularly bullish on agricultural-based assets. Yet Market Vectors Agribusiness (MOO) and PowerShares DB Agriculture (DBA) are both down -11% over the prior year. That said, Rogers isn’t the only one who sees a bright future for farmers. The heir to Warren Buffett’s [...] [...more]
U.S. stocks rallied 4% on the last day of November. Granted, China formerly announced that bank reserves would be lowered, a form of easing that hasn’t taken place in China in 3 years. And the ADP private payroll report on U.S. employment indicated a healthy pick-up in hiring. Nevertheless, the primary driver for one of the best sessions in [...] [...more]
In spite of stock market woes in November, the spot price of crude has managed to push back towards the $100 per barrel mark. Not surprisingly, ETFs with exceptionally high correlations to oil such as Market Vectors Russia (RSX), have significantly outperformed the iShares MSCI All-World Fund (ACWI). That said, Canada, the second largest non-OPEC producer, may also be worth a look. Don [...] [...more]
What happened to the high likelihood of a double-dip recession? It seems to have faded from bearish commentary. What happened to the notion that European policymakers would fail to agree on a plan for containing the sovereign debt virus? It appears that cooler heads are prevailing. Not surprisingly, one is likely to read a fair amount of cautious optimism [...] [...more]
Oversold ETFs, Warren Buffett and Financial ETFs, Korean ETFs, Energy ETFs, Risk-Off ETFs, Toxic ETFs, Libor Rates and ETFs Click here to listen to the show: 08-28-2011 [...more]
It seems obvious for some volatility-weary investors… just invest in defensive stocks. After all, the only three sectors in positive territory for 2011 are the non-cyclicals – health care, consumer staples and utilities. The problem? The best time to get defensive is typically BEFORE the fits hit the ticker tape. For instance, in April, volume breadth had already demonstrated a shift [...] [...more]
Remember when Meredith Whitney predicted 50-100 muni debt defaults for 2011? That was her December pick… state and local governments would shout for mercy. Whitney may find herself “right” on an actual number of defaults, as 24 have occurred in 2011 so far. Yet, as Trang Ho points out, these defaults total a mere $746 million in 2011 vs. $2.29 [...] [...more]
The more risk involved, the higher one should expect the dividend or interest payment to be. Then again, the media continue to describe a possibility of the U.S. defaulting on its debt… for which 10-year treasury yield investors willingly accept a paltry 3%! For other folks, investment grade treasuries and corporates simply aren’t worth the interest rate risk. The answer, then, could [...] [...more]
The debt ceiling story seems to change by the minute. First it was the McConnell plan. Then it was ”Cut, Cap And Balance” from the House. Now the Senate has support for a proposal from the bi-partisan “Gang of Six.” Regardless of the bill that makes it through to the very end, stocks soared on Tuesday. Earnings may [...] [...more]
The Greeks got their bailout, limiting the need for the country to sell the Parthenon in 2011. And U.S. economists received an upside surprise on manufacturing growth. Combined, optimistic bulls are beginning to feel much better about themselves. The question is… for how long? Chairman Bernanke explained that the Federal Reserve has finished with its ”QE” practice of buying U.S. treasury [...] [...more]
