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January 30, 2015
Successful ETF Investing

Successful ETF Investing
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January 30, 2015
Weekly ETF Report

January’s Not-So-Pretty Domestic ETF Picture The final week of January ushered in a host of corporate earnings reports and, for the most part, those earnings were a mixed bag. Some big names did well, handily beating Wall Street expectations, such as D.R. Horton (DHI), Boeing (BA) and Apple (AAPL), while other well known names fared poorly, including Caterpillar (CAT), Ford (F) and Procter & Gamble (PG). Still others came in with mixed results, notching higher revenue but a lower-than-anticipated bottom line. The biggest company of this sort was Microsoft (MSFT). The main reaction to earnings this week was decidedly bearish, as stocks sold off hard, driving the major domestic averages firmly into the red for January, as well as for the year to date. As of Thursday’s close on Jan. 29, the Dow Jones Industrial Average was down 2.28% year to date, while the S&P 500 was off by 1.83%. The NASDAQ Composite was off 1.11%, while large-cap techs in the NASDAQ 100 were down 1.30%. The chart here of the PowerShares QQQ Trust (QQQ), the exchange-traded fund (ETF) that mirrors the NASDAQ 100, shows January volatility in the segment. By contrast, the benchmark international ETF, the iShares MSCI EAFE Index Fund (EFA), is up 2.24% year to date. The chart here illustrates the big price spike in January. When the year began, I told subscribers to my Successful ETF Investing newsletter that what often happens in markets is that last year’s losers become this year’s winners. (For more on […]

January 23, 2015
Successful ETF Investing

Successful ETF Investing
Subscribe Today

January 23, 2015
Weekly ETF Report

The ETF Tailwind of ECB QE By far, the biggest market-moving event this week was the European Central Bank’s (ECB) decision to implement the Old World version of quantitative easing (QE). Although most everyone suspected the ECB would begin its own bond-buying program, the very bullish tailwind for both domestic and international exchange-traded funds (ETFs) was caused by the unexpected size and scope of the QE. The ECB now has committed to buying 60 billion euros’ worth of bonds per month for 18 months, much larger than the estimate for 50 billion euros per month for 12 months. More importantly, it’s the aggregate size of the ECB’s balance sheet that’s created the strong tailwind, as the new balance sheet will be more than 1.2 trillion euro QE by September 2015. That is far larger than the previously stated 1 trillion euro target. A quick look at the charts of the following ETFs — the PowerShares DB US Dollar Bullish ETF (UUP), the SPDR S&P 500 ETF (SPY) and the Vanguard Total World Stock ETF (VT) — reflects the bullish reaction to the ECB’s QE pronouncement. Interestingly, the rising U.S. dollar seen here via UUP is something that has the potential to weigh down U.S. equities in SPY, but we have yet to see this outcome reflected in the price of SPY. Perhaps more important are the potential near- and medium-term gains in international equities of the sort found in VT. This fund now is back above both its 50- and 200-day moving averages, […]

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How ETFs Fared in January

January 30, 2015

January’s Not-So-Pretty Domestic ETF Picture The final week of January ushered in a host of corporate earnings reports and, for the most part, those earnings were a mixed bag. Some big names did well, handily beating Wall Street expectations, such as D.R. Horton (DHI), Boeing (BA) and Apple (AAPL), while other well known names fared poorly, including Caterpillar (CAT), Ford (F) and Procter & Gamble (PG). Still others came in with mixed results, notching higher revenue but a lower-than-anticipated bottom line. The biggest company of this sort was Microsoft (MSFT). The main reaction to earnings this week was decidedly bearish, as stocks sold off hard, driving the major domestic averages firmly into the red for January, as well as for the year to date. As of Thursday’s close on Jan. 29, the Dow Jones Industrial Average was down 2.28% year to date, while the S&P 500 was off by 1.83%. The NASDAQ Composite was off 1.11%, while large-cap techs in the NASDAQ 100 were down 1.30%. The chart here of the PowerShares QQQ Trust (QQQ), the exchange-traded fund (ETF) that mirrors the NASDAQ 100, shows January volatility in the segment. By contrast, the benchmark international ETF, the iShares MSCI EAFE Index Fund (EFA), is up...

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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:...
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abc
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def
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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