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May 29, 2015
Successful ETF Investing

Successful ETF Investing
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May 29, 2015
Weekly ETF Report

Don’t Fall for the China Bubble Chatter There was a whole lot of chatter out there in the financial media this week regarding China, more specifically on the question of whether a China equity bubble is starting to burst. My recommendation to you, especially if you have money in Chinese stocks, is to not fall for what I consider to be the false narrative that there is a China equity bubble. Yes, Chinese stocks have seen big gains this year. Those gains have been particularly robust in the A-shares market, with funds like the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (ASHR) surging some 70% during the past six months. During the past five trading sessions, ASHR has given back some ground. How much ground are we talking about? Try 3.46%. Yes, that’s right, 3.46% in a week vs. nearly 74% gains in the fund before the trading week began. If you call that a bubble bursting, then I’ve got a bridge to sell you. I jest, of course, but you get the point. The idea that somehow any real damage is taking place in China just isn’t borne out by the numbers. In large-cap Chinese stocks, you might be able to make a case that a slight pullback is taking place. For example, the iShares Large-Cap China (FXI) is up 20% during the past six months, and during the past five trading sessions it’s down… 1.87%. Wait, the bubble chatter is over a 1.87% decline??? Well, here again […]

May 22, 2015
Successful ETF Investing

Successful ETF Investing
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May 22, 2015
Weekly ETF Report

The ‘New Normal’ Won’t Last Stocks in the S&P 500 are at new, all-time highs. The push to this point hasn’t been really robust, though, as evidenced by the fact that year to date, SPX is only up 3.3%. Still, we can’t deny the evidence that stocks have made the move to new highs, and that’s a good thing. What we can say, however, is that we shouldn’t fool ourselves into thinking that somehow this represents a “new normal” of sorts for the markets. The fact is that financial markets go up, and financial markets go down. You already knew that, of course, but in this era of central bank-stimulated equity values, it’s easy to think that maybe the new normal is for markets to just keep grinding higher. As we enter into a long, Memorial Day weekend, I want you to think about a couple of things. First, think about the immense sacrifice on the part of the men and women who gave their lives for this country via their military service. Then, think about the freedom that we all have, which includes the freedom to do what we choose with our money. In one tangential respect, making good choices with your money is a way of honoring those who paid the ultimate price for our freedom. I say that because it is incumbent upon us all to make good decisions in the best interest of ourselves, our families, our society and our country. You see, when you invest […]

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Why Talk of a China Bubble is off the Mark

May 29, 2015

Don’t Fall for the China Bubble Chatter There was a whole lot of chatter out there in the financial media this week regarding China, more specifically on the question of whether a China equity bubble is starting to burst. My recommendation to you, especially if you have money in Chinese stocks, is to not fall for what I consider to be the false narrative that there is a China equity bubble. Yes, Chinese stocks have seen big gains this year. Those gains have been particularly robust in the A-shares market, with funds like the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (ASHR) surging some 70% during the past six months. During the past five trading sessions, ASHR has given back some ground. How much ground are we talking about? Try 3.46%. Yes, that’s right, 3.46% in a week vs. nearly 74% gains in the fund before the trading week began. If you call that a bubble bursting, then I’ve got a bridge to sell you. I jest, of course, but you get the point. The idea that somehow any real damage is taking place in China just isn’t borne out by the numbers. In large-cap Chinese stocks, you might be able to make a case that...

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Investors have become complacent. Stocks are near all-time highs. Volatility is low. It's almost like investors are blind to the three coming catastrophes that can crash the market 30% or more in 2013:...
Current Recommendations
Fund Allocation
abc
25%
def
25%
ghi
25%
jkl
25%
Name Ticker Date Buy Price Stop Price
number 1 abc 08/30/2009 19.74 17.74
number 2 def 10/13/2009 19.72 17.72
number 3 ghi 05/15/2009 19.35 17.35
number 4 jkl 03/30/2009 20.08 17.08