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November 21, 2014
Successful ETF Investing

Successful ETF Investing
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November 21, 2014
Weekly ETF Report

China ETFs: The Biggest Dragons in the Lair In last week’s issue of the Weekly ETF Report, I mentioned that my job as an investment adviser allows me to review many prospective client portfolios. I also mentioned that I enjoy this process, as it tells me a lot about how investors are approaching the markets, and where there is a distinct concentration of assets, as well as a lack of assets. One portfolio in particular that I reviewed this week was heavily weighted toward U.S. equities and cash. This situation certainly seems to be the norm these days. While this gentleman’s portfolio was doing pretty well, there wasn’t much diversification, with virtually zero allocation to international markets. Interestingly, this lack of international exposure was something this prospective client realized. He then asked me which parts of the world I thought were the best in terms of where to start adding international equity exposure. My first response… China. As I also mentioned in last week’s issue, China’s equity markets are poised to never be the same again, as China just launched what’s called the “Shanghai-Hong Kong Stock Connect” program. The program allows retail investors around the world to invest in mainland Chinese equities, also known as China’s A-Shares market. The linking of the Shanghai and Hong Kong exchanges will allow approximately 23.5 billion yuan ($3.8 billion) of daily trading between the two markets, and that will essentially open up the mainland China equity markets to an influx of new foreign money. This […]

November 14, 2014
Successful ETF Investing

Successful ETF Investing
Subscribe Today

November 14, 2014
Weekly ETF Report

Chinese Stocks Will Never Be the Same Again Part of my job as an investment advisor is to review new and prospective client portfolios. I like doing this, since it tells me how investors feel about the markets. One trend I’ve noticed during the past several months is the lack of international stock exposure in most investors’ portfolios. This situation isn’t too surprising, considering the relative underperformance of international stocks vs. U.S. stocks. The chart here of the Vanguard FTSE All-World ex-US ETF (VEU) shows that global markets have indeed struggled of late. While this international equity fund is well off its lows, VEU does remain below both its 50- and 200-day moving averages. Compare this fund with the Vanguard Total Market VIPERs (VTI), an ETF that reflects the entire U.S. equity market. Here we see a big spike in the value of VTI since that mid-October slide. The fund now is well above its 50- and 200-day moving averages and trading right at its all-time high. Still, I think that generally, there is a somewhat unhealthy lack of diversification out there among many investors. While you may want to be overweight in U.S. stocks during the current bull phase, I think you also should have some targeted international equity exposure in your portfolio to take advantage of the value proposition in oversold segments and to offer you some relative protection if a rotation out of U.S. stocks occurs. One area I like right now is China. In fact, that […]

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China Offers Enticing International Investing Prospects

November 21, 2014

China ETFs: The Biggest Dragons in the Lair In last week’s issue of the Weekly ETF Report, I mentioned that my job as an investment adviser allows me to review many prospective client portfolios. I also mentioned that I enjoy this process, as it tells me a lot about how investors are approaching the markets, and where there is a distinct concentration of assets, as well as a lack of assets. One portfolio in particular that I reviewed this week was heavily weighted toward U.S. equities and cash. This situation certainly seems to be the norm these days. While this gentleman’s portfolio was doing pretty well, there wasn’t much diversification, with virtually zero allocation to international markets. Interestingly, this lack of international exposure was something this prospective client realized. He then asked me which parts of the world I thought were the best in terms of where to start adding international equity exposure. My first response… China. As I also mentioned in last week’s issue, China’s equity markets are poised to never be the same again, as China just launched what’s called the “Shanghai-Hong Kong Stock Connect” program. The program allows retail investors around the world to invest in mainland Chinese equities, also known as...

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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