It’s not unusual for optimism to reign supreme on the first trading day of a new year. What’s more, considering just how far U.S. treasury yields have dropped, one might expect a shift out of the “panic room” and into the “risk trade.” That said, there are many reasons to rein in one’s enthusiasm. For instance, even if Europe [...] [...more]
Throughout the last 10 years, world currencies gained remarkable ground on the U.S. dollar. In fact, it wasn’t that long ago when the cover of The Economist featured George Washington with his wig on fire; the former president is piloting a “greenback in flames” as it nose-dives towards Earth. However, the U.S. dollar served as a one-of-a-kind [...] [...more]
We’ve heard the “revival” story before. Yet everytime over the last 2 decades that a revival in Japanese equities appeared imminent, something went awry. That said, it’s difficult to argue with the price gains or the fund flow. For instance, WisdomTree Japan Hedged Equity Fund (DXJ) has experienced a week-over-week increase in net assets of nearly 14%. What’s [...] [...more]
The U.S. stock market has actually outperformed the overwhelming majority of world equity markets on a local currency basis. However, the dollar’s year-to-date slide has inflated the returns of developed world ETFs like iShares MSCI France (EWQ) and iShares Italy (EWI). In fact, virtually all of the gains for Foreign Stock ETFs traded on U.S. exchanges can be attributed to the [...] [...more]
ETF investors added more than $21 billion in net new assets during April. This represented the 8th consecutive month of positive inflows for the industry. Analysts report that the $1.12 trillion is primarily dedicated to 3 companies. Blackrock’s iShares brand has roughly 220 ETFs with $500 billion in assets; State Street and Vanguard have $257 billion and $172 billion respectively. In the past, broader regional indices had little [...] [...more]
Investing in the companies that serve the rising middle classes in BRIC countries has helped portfolios for most of 2010 and most of the previous decade. Yet many folks are beginning to see cracks in the strategy. The mainland’s 4.4% year-over-year CPI increase for October raised eyebrows, and primarily… China governing officials. They promptly raised bank reserve requirements to battle inflationary fears for [...] [...more]
Global economic expansion is real. Current GDP expectations are for 40 out of 42 of the world’s largest economies to grow. And forecasters believe GDP percentage growth will be particularly robust for the emerging countries. Yet, which International ETFs can enhance your portfolio right now? Is the European Monetary Union destined for despair with Portgual, Italy, Ireland, Greece and Spain? When [...] [...more]
Investors may look for a variety of characteristics when they assess the potential of Biotech ETFs. They may be enamoured with a new technology or a potential drug patent; they might believe a big-time biological discovery is imminent. However, gigantic gains in Biotech ETFs are more often driven by words like “takeover” and “buyout.” Could ownership changes in companies like Biogen [...] [...more]
China may be setting up for a very strong run. With double-digit GDP possible for 2010, modest inflation, and slow removal of stimulus, ETF investors should ”get the scoop” on all things China. We also look in on other International ETF themes. For instance, what are the endowment folks at Harvard purchasing? What are the markets saying about Russia? China: Best Play Of The Year? - [...] [...more]
Most U.S. ETFs are hitting 15-month highs. Yet everything and anything “tech” has surged beyond the 15-month mark and beyond the infamous date of September 15, 2008. That’s when the credit crisis imploded like a hand grenade. Companies like Apple and Gogole have led the super-charge, even bringing some of the old-timers (Microsoft, Dell, Cisco) along for the ride. [...] [...more]
