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December 12, 2014
Successful ETF Investing

Successful ETF Investing
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December 12, 2014
Weekly ETF Report

Wet and Wild in California, and the Markets I live in California, and that means today I’m soaking wet. Last month, woes about the worst drought in decades had everyone scurrying to save water and finance bond measures to build more water infrastructure. This morning, the rains are formidable, with heavy downpours throughout the state causing major damage to homes and businesses, as well as roadways and vehicles. While watching the rain siege outside my window this morning, I thought about the reactionary nature of human beings. We react to a drought too late. When it rains in virtual buckets, we scramble for the sand bags and try to cope with the deluge. So, what does this all have to do with the financial markets? Well, policymakers in Washington, at central banks around the world and even just regular investors tend to react to circumstances they can’t control. Much like the weather, there are many things that can’t be anticipated or controlled. But rather than reacting to them after the fact, why not be prepared for them beforehand? I know this makes sense, but most of us just don’t do what we should to prepare ourselves for the inevitable droughts and downpours in life. In the markets, there’s been a downpour in the price of crude oil of late. Oil prices now have tumbled to five-year lows, and they’ve done so in ultra-rapid fashion. The chart below of the iPath S&P GSCI Oil fund (OIL) clearly points out this situation. There’s […]

December 5, 2014
Successful ETF Investing

Successful ETF Investing
Subscribe Today

December 5, 2014
Weekly ETF Report

China Puts the Smackdown on the United States In the United States, we used to be able to chant, “We’re No. 1; we’re No. 1.” Well, we can’t do that anymore — at least when it comes to the size of our economy. According to the International Monetary Fund, when you measure national economic output in “real” terms of goods and services, this year China will produce $17.6 trillion vs. the United States, which will produce $17.4 trillion. While this total output figure doesn’t tell the whole story, it does suggest that at least by this important metric, we aren’t No. 1 anymore. That distinction belongs to our neighbors in the Far East. For investors, China’s smackdown of the United States here is something that should be embraced, especially because size does matter when it comes to investing in international markets. Take a look at the two-year chart here of the Shanghai Composite Index ($SSEC). As you can see, Chinese stocks trended lower from early 2013 through mid 2014. Since then, however, there has been a huge rebound in Chinese stocks. This big rebound has taken place due to various factors, including Chinese stock market reforms, an interest rate cut by the People’s Bank of China and a stabilization of economic growth. I suspect that this trend will continue in 2015, as investors look to ride momentum in international sectors and also as stocks here at home rise to overbought levels. Then there’s the issue of the increasingly strong U.S. dollar, […]

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Being Prepared for the Fall in Oil and Interest Rates

December 12, 2014

Wet and Wild in California, and the Markets I live in California, and that means today I’m soaking wet. Last month, woes about the worst drought in decades had everyone scurrying to save water and finance bond measures to build more water infrastructure. This morning, the rains are formidable, with heavy downpours throughout the state causing major damage to homes and businesses, as well as roadways and vehicles. While watching the rain siege outside my window this morning, I thought about the reactionary nature of human beings. We react to a drought too late. When it rains in virtual buckets, we scramble for the sand bags and try to cope with the deluge. So, what does this all have to do with the financial markets? Well, policymakers in Washington, at central banks around the world and even just regular investors tend to react to circumstances they can’t control. Much like the weather, there are many things that can’t be anticipated or controlled. But rather than reacting to them after the fact, why not be prepared for them beforehand? I know this makes sense, but most of us just don’t do what we should to prepare ourselves for the inevitable droughts and downpours in life. In the markets,...

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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