Bull? Bear? The U.S. Stock Market Is More Like The Honey Badger

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, US Markets and ETFs | No Comments

Voters in the United Kingdom shockingly decided to leave the European Union? The stock market barely blinked. Voters in the United States unexpectedly elected a brash promoter over a well-established political insider? The stock market didn’t care. It told the media elite to take a hike, then promptly climbed to higher ground. The S&P 500 really doesn’t care what you think. It takes what it wants when it wants. The Federal Reserve continues to raise overnight lending rates? The yield…

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Did Stock Guru Jim Cramer Learn Anything From 2000 And 2008?

By | Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Special Sectors ETFs, US Markets and ETFs | No Comments

Borrowing money to get something that a person wants today can be financially rewarding. For example, mortgage debt helps a borrower acquire a home that is likely to appreciate in value over time. Not only does one enjoy the use of the property, one often increases his/her net worth through the use of leverage. A problem might develop, however, if an individual or family struggles to make the monthly payment. Job loss, sickness, ill-advised spending habits – a lendee might…

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Are Stock Investors Placing Too Much Faith In Tax Cuts?

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Popular Posts, US Markets and ETFs | No Comments

There hasn’t been a major overhaul of the tax code in three decades. More notably, Reagan’s signature achievement required four years of deal making between the executive and legislative branches of government. Tax code reformation did not transpire overnight. Yet many investors seem to think consequential tax reduction for corporations as well as tax cuts for the middle class is a cinch. It won’t be. There are debt-weary Republicans who are not likely to rubber stamp a package if it…

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Rationalizing Stock Market Irrationality (Or, The Earth Might Be Flat)

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The repeal-n-replace health care bill needs a “Yes” vote from the House of Representatives on Thursday, March 23rd. With it, the financial markets may move higher on the belief that Trump/Congress will be able to pass corporate-friendly legislation from tax overhaul to regulatory reform. Without it, risk assets may stumble on the fear that political leaders will be unable to provide ambitious stimulus measures down the road. The prospect of lower taxes has always been at the heart of the…

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The Fed and Cheap Money: Are We Closing In On A Swan Song?

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Corporations have more than doubled their debt levels since 2008’s financial crisis, from $3.5 trillion to $8.1 trillion. They are carrying more leverage (e.g., debt-to-revenue, debt-to-EBITDA, etc.) than at any point since the 2000-2002 tech wreck. And the cash relative to the debt on corporate books has been dropping precipitously. Granted, one can choose to emphasize the inexpensive nature of the credit. Why shouldn’t companies borrow by the boatload as long as interest rates remain relatively contained? For one thing,…

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What If This Is As Good As It Gets?

By | Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

There are a handful of movies that suck me in whenever they come around. Goodfellas. The Godfather. The Shawshank Redemption. Still, there’s only one production where I can never get enough of the main character’s outlandishness. Melvin Udall in As Good As It Gets. He hoards bars of soap as part of an obsessive-compulsive disorder. He sneeringly berates a woman for admiring his work as an author. He even shoves the neighbor’s dog down a laundry chute. I watched the Jack…

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