Each week ETFtrends.com publishes news, commentary and strategist stories surrounding the world of exchange traded funds (ETFs).
Here’s a look at the Top 10 ETF Strategist Stories of the Week for May 16-20, 2016.
Click the headline to read more – enjoy!
It’s been a good run – nobody can deny that. For being the most hated bull market in history, performance has been stellar on both an absolute and risk-adjusted basis.
How good? Consider this: the 5-year realized Sharpe ratio of the S&P 500 peaked in 2014 at a level higher than what it achieved during dot-com mania. Click to read more!
Market bubbles occur when the price of an asset significantly deviates from its intrinsic value. There have been numerous bubbles predicted in my 20 years as a professional investor. Fortunately, only two, from the perspective of U.S. investors, came to pass. The technology bubble in 2000 and the financial crisis in 2008.
Bubbles are hard to identify until they occur. But there’s one equation we can look to. Click to read more!
Stringer Asset Management recently upgraded its outlook on the global economy and financial markets from cautious to cautiously optimistic. That is not to say that the global economy and financial markets are out of the woods. Click to read more!
Recently I had the opportunity to talk about asset allocation with a talented financial advisor. We discussed ideas about combining asset classes and strategies in the optimal way to meet the needs of his clients. As we reviewed whether a particular exchange traded fund strategy would be appropriate, I asked him, “What question do you expect this ETF strategy to answer?” Click to read more!
The last two years have done little to instill investor confidence, and the past nine months have likely made the situation worse. To be sure, the most recent survey by AAII (American Association of Individual Investors) shows the % bullish levels similar to when the markets were near their lows in February. According to a recent study by State Street, investors continue to be wary about reinvesting in the market as show by cash holdings of nearly 40% in their portfolios. Click to read more!
Vertigo is a condition that makes people feel like objects around them are spinning when they are not, and it generally leaves people feeling dizzy. Recently it hit me that trying to analyze U.S. economic data was giving me vertigo, since the only consistency in the data seems to be pure inconsistency. For instance, yesterday I was parsing a few data points that registered on the Bloomberg. Here’s a smattering of what gave me market indigestion. Click to read more!
A key component of successful goals-based investing is to think opportunistically. Tactical investment strategies designed to capture upside returns and minimize downside risk are integral to investors’ ability to grow, protect and spend their wealth in pursuit of their unique goals. Click to read more!
Read the fine print of the disclosures of a leveraged exchange traded fund and you’ll probably come across something like the following: “This leveraged ETF seeks a return that is +200% or -200% of the return of its benchmark index for a single day. The ETF should not be expected to provide double or negative twice times the return of the benchmark’s cumulative return for periods greater than a day.” Click to read more!
In our latest adjustment to the asset allocation portfolios, we added to the Real Estate Investment Trust (REIT) positions in three of the four models. One of the reasons we remain friendly to this asset class has been the steady increase in rental income. Click to read more!
A popular debate in the asset management industry is “passive” vs. “active” investing. Index-based investment vehicles have gathered a significant amount of assets over the last decade, to the detriment of active investing, perpetuating this debate even further. Click to read more!