It’s A Large-Cap Tech World After All

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | One Comment

Apple, Microsoft, Amazon, Facebook and Google (now Alphabet) account for roughly 13% of the S&P 500 SPDR Trust’s (SPY) price movement. The same 5 corporations? 42% of the NASDAQ 100’s (QQQ) price appreciation. The super-sized weighting of prominent tech companies in these benchmark ETFs has resulted in year-to-date gains of 7.1% and 16.6% respectively. Yet the rest of the market’s performance has been flat. Barely positive, in fact. Not sure? Take a look at the performance of small-cap and value-oriented…

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Amazon (AMZN): Love the Company, Hate The Stock Price

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Popular Posts, Special Sectors ETFs, US Markets and ETFs | One Comment

I recently ate dinner with a high-net-worth sales executive who asked me, “What are your thoughts on Amazon?” I told him the truth. Excellent company… unusually vulnerable stock. I explained my thesis on debt levels, excessive financial leverage, bubbly market euphoria, over-valuation as well as forced liquidation via margin calls. He seemed surprised that I might be concerned. He stated confidently, “Jeff Bezos is a one-of-a-kind innovator and Amazon is the future of retail. The stock should do very well…

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Extreme Leverage? Extreme Valuations? Big Time Short Sellers Must Be Thinking About It

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

There is an eight foot broadleaf evergreen directly outside my office door. Normally, I would not give it a second’s glance. Recently, however, a hummingbird has been buzzing about the greenery. And with good reason. Two hatchlings have arrived, requiring food as well as warmth. In spite of my presence, the mother has been expressing an unusual amount of audacity. She does not flinch when I walk near the nest. And when she’s out gathering insects to feed her young, she…

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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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