IU For May, there are 26 new names joining the list and 11 coming off. Only seven of the removals were the result of improved health—the other four died and lost their listings. The current membership consists of 342 ETFs and 108 ETNs. Further segmentation of the ETF population reveals that 41 are actively managed funds, 151 have smart-beta labels, and the remaining 150 are traditional capitalization-weighted ETFs. The surge of currency-hedged ETF introductions of the past two years continues to be problematic for the industry. The brief nine-month surge of the U.S. dollar in late 2014 and early 2015 generated a slew of currency-hedged E...
On a monthly basis the American Association of Individual Investors surveys its members on the asset allocation of their members investment holdings. In the April survey, on average, its members noted their equity exposure equaled about 64%, above the average of 60%. The bond allocation was equal to the long term average, while cash came in below average. What is interesting about these stated allocation responses is the AAII Sentiment Survey notes a near extreme low on individual investor bullish sentiment. In the Sentiment Survey report released this week, bullish sentiment was reported at 19.3%, which is far below the longer term average...
We’re seeing a true rise of the machines. The quest to boost the nationwide minimum wage may be backfiring. Fast food restaurants are leading a new rebellion to circumvent higher minimum wages, which includes doing away with low-wage workers altogether. They are rolling out self-serve kiosks and this could be just the beginning. Wendy’s (NYSE: WEN) announced this month that it will have self-serve kiosks in many of its restaurants by 2017. McDonald’s (NYSE: MCD) has already been testing self-serve kiosks, dubbing them “Create Your Taste.” Panera (NASDAQ: PNRA) started rolling out self-service kiosks in 2014. Even Chili’s in...
VIX broke above prior highs and challenged its weekly Intermediate-term resistance at 16.91 before falling back beneath weekly mid-Cycle support/resistance at 15.97. This may indicate a potential buy signal (NYSE sell). Further confirmation of the buy signal lies with a close above the mid-Cycle resistance and Intermediate-term resistance. (Bloomberg) Since its April low, the Chicago Board Options Exchange Volatility Index — a gauge tracking U.S. equity swings — has climbed 25 percent through Thursday, beating similar indexes for other asset classes, Bloomberg Tradebook highlighted in a note. While still much lower than a...
Self-Directed IRA’s are, unfortunately, a well kept secret… Well, this is one secret I won’t keep! Do you know what at Self-Directed IRA is? What it can own? How it is different from a Traditional IRA? I share with you some information on the Self-Directed IRA in this short video. Running length 00:10:24...
How Lucky Do You Feel? Nine years ago, I wrote about the so-called “Fed Model.” The insights there are still true, though the model has yielded no useful signals over that time. It would have told you to remain in stocks, which given the way many panic, would not have been a bad decision. I’m here to write about a related issue. To a first approximation, most investment judgments are a comparison between two figures, whether most people want to admit it or not. Take the “Fed Model” as an example. You decide to invest in stocks or not based on the difference between Treasury yields and the earnings yield of stocks as a whole...
The next biggest thing ever comes around once every six months or so. These shifts in market sentiment can provide opportunities to profit in the short term for sure, but not many of them pan out to live up to the hype. Still, it’s a blast trying to find the next “story stock” that’s going to revolutionize an industry or change our daily lives. Not too long ago, the hot topic was 3D printing. The technology was set to change manufacturing in the future. Rather than having to go to the store to pick something up, we’d just download the instructions and print what we needed right there in the comfort of our own home. Personally, I und...
Our capital market assumptions for returns over the next 5 years forecast lower returns ahead, given moderate economic growth and stretched valuations. Take a look. Written by: Richard Turnill (BlackRock.com) The bars in the chart below show our return assumptions for selected asset classes, while the dots show expected volatility. Higher returns generally come with more volatility. Many of our return assumptions are now at or near post-crisis lows, with many expected returns below historical averages. These assumptions reflect high current valuations and lower global growth over the next five years, in line with a long, flat U.S. recovery...
Kyle Bass focuses much of his commentary on what`s going on in China, and in actuality the Fed has been the biggest driver of price in this trade so far the past year....