How many major sectors of the U.S. economy are riding above their respective long-term, 200-day trendlines? 3 of the big 10 are. Not surprisingly, Defensive Equity ETFs like SPDR Select Sector Utilities (XLU) and SPDR Select Sector Staples (XLP) made the cut. More surprisingly to some, however, is the recent emergence of a cyclical powerhouse like SPDR Select Sector [...] [...more]
Is it a loss of confidence in gold that has caused a 10% sell-off over the previous 5 trading sessions? Have under-performing hedge fund managers been forced to liquidate the SPDR Gold Trust (GLD) — hedge fund managers like John Paulson who own super-sized stakes in the world’s largest gold ETF? Data may suggest otherwise. Futures traders have yet to close out [...] [...more]
One of the arguments in favor of Dividend ETFs is that they provide 3.0%-3.5% with the potential for capital appreciation. But the last 3 months have seen more depreciation than the “attractive” yield could offset. With savings accounts and CDs offering 1.0% on the high end, investment-grade U.S. government debt has been a consideration for some folks. Of [...] [...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]
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]
If Abby Joseph Cohen is/was the quintessential perma-bull for U.S. equities, Franklin Templeton’s Mark Mobius is her perma-twin for emerging markets. In fact, it may not be possible to find a moment in time when Mobius wasn’t bullish on emerging countries. Today, Mobius isn’t even falling back on valuation-based arguments; he’s not talking about GDP growth or fiscal policy. He simply points to [...] [...more]
What was one of the first market reactions to Libyan rebels taking over Tripoli? A net positive… as an uncertain war may finally be coming to an end. Best of all, with the Gadhafi regime fading into the history books, the world may be able to rest a bit easier. Yet investors now have to wonder, who will be in charge in [...] [...more]
From the time that S&P downgraded U.S. treasury bonds after market hours on 8/5… to the close of market on 8/15… stocks in the S&P 500 returned 0.4%. In fact, if you had gone away on vacation, you may have thought nothing about the previous six trading days. Anyone who turned on a television or scanned the Internet, however, learned that [...] [...more]
Suddenly, stocks are income investments. “Seriously!” analysts are screaming. Consider the case of the U.S. government’s AA+ debt for a 10-year treasury at 2.13%. Microsoft still has its triple-A (AAA) rating… and it’s yielding 2.6%. Johnson & Johnson has its triple-A rating intact… and it yields 3.7%. Who knows when the volatility will end. But it will. And [...] [...more]
The latest pullback on oil from $100 per barrel to $90 per barrel may provide opportunity for energy investors. With realistic double-dip recession fears and generalized debt downgrade anxiety, iShares DJ Oil Services (IEZ) has given back nearly -7.5% from its top. One author suggests waiting for IEZ to drop a full -10%+ from its high before entering a long [...] [...more]
