iShares S&P 500 Index (ETF)
In 2012 investors put a total of $154 billion into exchange traded funds, or ETFs, while removing $119 billion from mutual funds. The move from actively managed mutual funds to passive ETFs is a good one for investors. ETFs tend to have far lower fees than mutual funds, which in the long term matters quite a bit. A lot of money is being moved into bond ETFs, which is another more »
Investors are constantly looking for ten baggers in the latest trends, like 3D printing, an aging population, and the Chinese growth miracle. Without looking at the big picture it is easy to ignore the possibility that stocks as an asset class are overvalued.
Corporate profits after tax are at super high levels. This is not a simple anomaly from the latest quarterly earnings, but a substantial change over the past more »
Stock market performance in the recent past has clearly damaged the “buy-and-hold” strategy which worked well in previous decades. Any financial advisor could present an Ibbottson chart showing the long-term performance of equities and cite the expected 10% return from investing in equities that had historically had the answer to meeting the plan of the client. The problem with this is that a chart showing a track record since the more »
“Comeback is a good word, man.” - Mickey Rourke
Turkey's market got hammered in 2011 with its stocks down over 30% as a result of not just concerns over a global slowdown due to the Eurozone, but also because the Lira (Turkey's currency) declined strongly as inflation picked up in the country. However, recent strength in risk-assets could result in a strong comeback for emerging and frontier markets, particularly more »
We are hearing lots of talk lately about the "Golden Cross" and how it's time to buy stocks. In this report we will define what the "Golden Cross" is and what it really mean for stocks.
The Golden Cross Defined.
The "Golden Cross" is a technical term used when the 50 day moving average crossing back above the 200 day moving average level. This signifies a trend that is more »
“The real glory is being knocked to your knees and then coming back. That's real glory. That's the essence of it.” - Vince Lombardi
I've been focusing more and more attention on Japan lately as the Nikkei appears to be recovering and as animal spirits return to equity markets. There appears to be a growing possibility that the markets are moving away from “risk-off” investments and into investments more »
"Diamonds are nothing more than chunks of coal that stuck to their jobs." - Malcolm Forbes
Despite continued lingering concerns over the recent debt downgrades by S&P of European debt, there does appear to be some kind of return to “normalcy” occurring in stock markets. I’ve been writing about the idea that we are in for a “Winter Resolution” following the Summer Crash and Fall-Melt Up of last year more »