All-Time Stock Highs: Why Modest Risk-Renting Will Outshine Extreme Risk-Taking

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

There has been a great deal of media hype surrounding new all-time highs in the U.S. stock market. For that matter, there has been a fair amount of puffery when it comes to how well stocks are performing overall. In actuality, we have seen similar levels for the S&P 500 twice before. The S&P 500 traded around the 2925 level in September of 2018 and the 2875 level back in January of 2018. The last 16 months, then, have not…

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The Attractiveness Of A Defensive Stock Strategy

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

In January of 2018, the U.S. economy surprised to the upside at nearly every turn. Since that time, however, the fundamentals have slowly deteriorated. Consider the Citi Economic Surprise Index (ESI). The popular measure compares actual data against estimates. Remarkably, the indicator has been trending downward for 15 months. Perhaps ironically, the S&P 500 now trades at higher levels than when the fundamental backdrop had been much stronger. For many stock investors, then, weak fundamentals are synonymous with the exciting…

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Why Do Bond Investors Doubt The Stock Market Recovery?

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Global ETFs, Health ETFs, Popular Posts, Special Sectors ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Is a recession in the U.S. around the bend? Few economists are predicting one. On the other hand, longer-term Treasury bond yields continue to slide below shorter-term maturities. Bond investors are gobbling up long-term government debt because they believe that the economy will slow dramatically. Normally, the longer an investor allows the U.S. government to keep capital, the more that an investor would expect in annual interest from Uncle Sam. That is what transpires in a healthy economy. This past…

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Will The ‘Fed Put’ Work On The Next Go-Around?

By | Current Affairs and ETFs, Dividend ETFs, ETF Strategy, Large Cap ETFs, Popular Posts, Real Estate ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The Federal Reserve’s “180-degree turn” has worked swimmingly for borrowers and risk-takers alike. The 10-year yield has dropped from 3.24% to 2.62%. That may encourage households and businesses to lever up with more debt. Meanwhile, stocks are surging upward, reaching for the record heights experienced during the September-October peak. The question investors need to ask themselves now is, “Will the ‘Fed Put’ work on the next go-around? It depends. And it likely depends on whether or not the U.S. is…

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Fooling Investors For A Third Time

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

After being fooled by dot-com mania at the turn of the century, many stock investors vowed that they would not make the same mistake twice. So they turned to “can’t-lose” real estate. Of course, the housing bubble made fools out of many of the very same fortune-seekers. Today, circumstances are more precarious. It is not stocks or real estate. It is stocks AND real estate. In fact, it is stocks, bonds and real estate – the assets that constitute record household net worth. The…

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From 50 To Zero: Why Investors Are Shunning International Stocks

By | Asia ETFs, Bond ETFs, China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Frontier Market ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Leading into 2008, emerging market stocks and international stocks dominated financial shows. “Talking heads” agreed that investors should allocate as much as 50% overseas for a well-diversified portfolio. The reasoning? One should be aligned with the world’s stock market pie. After all, half of the world’s market capitalization belonged to U.S. stocks and half belonged to stocks from elsewhere around the globe. However, the real reason had little to do with market capitalization. In truth, foreign stocks were dramatically outperforming…

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