Non-cyclical stock sectors (e.g., consumer staples, health care, utilities, etc.) often do well when there are concerns about economic growth. Indeed, exchange-traded funds representing one or more components of the non-cyclical arena have been the key drivers in the broader U.S. market’s run toward all-time records.
Nevertheless, it is still a bit surprising that the potential [...] [...more]
There are a wide variety of active risk management strategies. None of them are fool-proof.
The one that we advocate — stop-limit loss orders — may have adverse tax consequences; the stop may also fail to execute in a rapidly declining market.
Options¬†and futures¬†investors cheer the “out-of-the-money” puts. This has the benefit of an insurance policy, though [...] [...more]
Short-sellers and program traders are in charge… for now.
Going into Wednesday’s (8/3/11) session, PowerShares¬†QQQ (QQQ) sat directly atop its 200-day moving average. After falling below the key trendline early, QQQ springboarded¬†to finish¬†with a 1% gain.¬†Or consider the S&P 500 SPDR Trust (SPY).¬†It fell precisely -10% from its April 29 intra-day high to its August 3 [...] [...more]
Two of the most bullish voices in the mainstream¬†media include money manager Ken Fisher and Bob Doll, the chief equity strategist at Blackrock. Fisher experienced an epic “fail” by completely missing¬†the 2007-2009 bear/financial collapse; he had little choice but to stick with a never-ending bullish theme¬†to claim credit for calling the “turnaround.”
Bob Doll has always [...] [...more]
There has been a lot of talk about equity market resilience. There has been even more talk about the enormous amount of Stock ETF inflow… $5.5 billion last week alone!
Nevertheless, the largest gains are coming from the least volatile sectors. Healthcare ETFs have been noteworthy outperformers over¬†1¬†and 3 months.¬†What’s more,¬†share prices of peanut butter and [...] [...more]
With¬†stock markets¬†globe-wide succumbing to¬†volatility, certain¬†ETFs have¬†secured¬†more than a fair share of followers. For example, PowerShares US Dollar Bullish (UUP) has successfully capitalized on the¬†king of all currencies. Treasury Bond ETFs have also curried favor.
Does his mean you should¬†buy into¬†the¬†doom-n-gloom forecasted by U.S. Treasury Bond ETFs?¬†Or are there other ways to interpret the recent flight to [...] [...more]