Consider the reality that existed a mere 4 months ago. Stocks were at 52-week lows and, in many cases, 2 1/2 year lows. A short while later… a wide variety of the very same risk assets have jumped 20%-30%! Of course, healthy bull markets typically experience pullbacks. And while the methodology for determining when a pullback might arrive differs from [...] [...more]
For years, I’ve had a running “beef” with Morningstar’s one-dimensional presentations of overvalued and undervalued ETFs. (See Overvalued and Undervalued ETFs: Eye of the Beholder.) Specifically, the popular web portal uses a fundamental approach for determining a fund’s intrinsic worth. The method ignores history, seasonality, technical data, contrarian data, oil, interest rates, economics, current events and [...] [...more]
To be or not to be… that’s NOT the question. The question is, “At what price will oil start to negatively affect the stock market?” First came Egypt and Tunisia. Then came Libya. And with every word out of the mouths of Saudia Arabia leaders, there’s concern that $110 per barrel may not even hold. Many economists estimate [...] [...more]
Earnings season is rapidly approaching. Assuming geopolitical risks move to the background, investors will once again turn to corporate revenues, profits and future guidance. With some Sector ETFs having experienced an admirable rise in share prices already (Energy with 15% and Industrials up 8% in 2011), is the good news already baked into the cake? Should investors [...] [...more]
This week, Pfizer posted better-than-expected Q2 earnings. Yet, Johnson & Johnson recently disappointed with its results. How might Pharma ETFs fare as regulatory uncertainty becomes a bit clearer and as the drug distributors prepare for 2011? On a separate note, one of the top writers at Index Universe suggests that stocks should be “in” and that gold should [...] [...more]
Markets moved dramatically higher off their correction lows from the first week of July. Some believe the 6%-8% free-for-all has pushed many ETFs into overbought territory. Others believe that it was a last gasp for air before more bearish forces initiate the next cataclysmic storm. If you hate watching the markets as though you were participating in some bizarre nest [...] [...more]
Who doesn’t appreciate the hard work and research that comes from the Bespoke Group? The data that Bespoke compiles always stimulates my brain cells… even when I disagree with the interpretation of the info presented. For instance, last month I called out Bespoke for a simplistic observation that China had gone from first place to last [...] [...more]
Index weighting may seem like a bland topic. However, when selecting ETFs, the right “weight” may tip the return scales in your favor. Some indexing alternatives include: (1) Dividend-oriented, (2) Earnings-oriented, (3) Market-cap weighting, and (4) Equal weighting. Find out what will work best for you. Financials, Industrials, And Materials At Most Overbought Levels In At Least A Year - Bespoke Third Preferred Stock [...] [...more]
Technical analysts rarely like to see stock ETFs more than 10% above short-term, 50-day MA, let alone a longer-term 200-day moving average. Yet financial ETFs like the SPDR Select Financial Fund (XLF) finished August as much as 15% above the 50-day MA… helping to secure an “overbought” status. After the beating that banking experienced on the first [...] [...more]
