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]
How difficult do the stock bulls have it? The iShares DJ Transports (IYT) hit a new 52-week low, and may be marking a new bear signal for Dow Theory proponents. The financial sector via SPDR KBW Banks (KBE) also reached new 52-week lows. Worse yet, many European benchmarks have plummeted to depths not visited in more than 2 years. The reasons are too plentiful to tally. That [...] [...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]
Many investors make the mistake of “yield hunting.” Specifically, they choose an investment based solely on annual yield. The practice is troublesome enough for those who choose stocks based entirely on the highest dividend payout. It’s equally disheartening when income investors fail to recognize the extra risk that they take in the bond arena. Ron Rowland at Money [...] [...more]
Most investors acknowledge that Jim Rogers, the notorious bull in a China shop, deserves his guru status. He’s been right on commodity demand, prescient about the U.S. dollar and an accurate advocate of Asian equities. However, few people realize that Mr. Rogers chose Singapore as his neighborhood back in 2007. He believes that assets will continue flowing into the Asian [...] [...more]
Some Crude Oil ETFs have fallen into a bear market. And it only took 6 weeks to fall more than 20%! (Have gasoline prices fallen from $4.00 to $3.20… just asking?) Yet the oil drop is sharing the stage with other important indicators of local economic activity. Specifically, the bear is clawing away at Small Cap [...] [...more]
Pimco’s Bill Gross believes treasury investors could be on a very dangerous path. In fact, he’s been slamming treasuries for months, even as their gains have been phenomenal. Even if Mr. Gross was “early” on his call to dump treasuries and/or short them, he certainly has a case to make. QE2 is close to expiration, which means the [...] [...more]
Oil demand for China in April jumped 8.3% from the same period in 2010. The gain was the third highest one-month spike on record. Couple China’s demand with Deutsche Bank’s forecast that global demand should remain vibrant throughout the summer, and crude has had little trouble remaining near $100 per barrel. Could United States Oil ETF (USO) or the iPath S&P GSCI Crude Oil TR [...] [...more]
On May 16, 2011, iShares Russell 2000 Index Fund (IWM), SPDR S&P 500 (SPY) and the PowerShares QQQ Trust (QQQ) bled $699 million, $673 million and $425 million respectively. Ironically, in spite of weakness across Emering Market ETFs, iShares FTSE/Xinhua China 25 (FXI) ”only” shed $174 million in net assets under management. Energy stocks have been battered alongside Commodity ETFs. Perhaps [...] [...more]
While the FOMC and Ben Bernanke believe that inflation is under control, the cost of commodities (e.g., corn, silver, coal, cotton, coffee, etc.) have rocketed to multi-year peaks. Over the last decade, the price of crude alone has spiked 340%, jumping from $25 per barrel to $110+. Investors may have good reason to worry about the effects on their wallets and their portfolios. For instance, families may balk at [...] [...more]
