Industry Sectors

ETF Battles: ROBO vs. BOTZ – A Face-off Between Automation ETFs

This is an excerpt of ETF Battles between ROBO vs. BOTZ– it’s a face-off between two AI, automation and robotics ETFs.  Who wins the battle? BOTZ and ROBO go against each other in key areas, including diversification, exposure strategy and a mystery category Both thematic ETFs track stocks in artificial intelligence, automation and robotics Both …

ETF Battles: ROBO vs. BOTZ – A Face-off Between Automation ETFs Read More »

ETF Battles: TQQQ vs. FNGU – A Duel Between Leveraged High Tech ETPs

This is an excerpt of ETF Battles between TQQQ vs. FNGU – it’s a duel between these technology leveraged ETPs.  Who wins the battle? TQQQ and FNGU go against each other in key categories, including cost, performance and a mystery category Both products track technology stocks with 300% or 3x daily leverage Both products have …

ETF Battles: TQQQ vs. FNGU – A Duel Between Leveraged High Tech ETPs Read More »

Battle of the Tech ETFs: TECL vs. XLK

Question from our mailbag: Which technology ETF is the better choice – TECL or XLK? – Victor in Kansas It’s not surprising to see a high level of interest in the tech sector. Whether its the promise of cloud computing (NYSEARCA:SKYY), clean energy transportation (NYSEARCA:LIT), or improved cyber-security (NYSEARCA:HACK), technology always leads other sectors with …

Battle of the Tech ETFs: TECL vs. XLK Read More »

How to Use Single Country ETFs

Among the greatest breakthroughs that exchange-traded funds (ETFs) have made is giving people complete control of their investment decisions. On one hand, a person may want to obtain very broad and diversified exposure using just one ETF, that may hold thousands of securities. To replicate that type of portfolio security by security would be both …

How to Use Single Country ETFs Read More »

Is Sector Performance Following History?

It’s been said the more things change, the more they stay the same. And right now, the performance of stock market industry sectors is behaving right in line with that view. During the first quarter, the total U.S. stock market (NYSEARCA:VTI) rose almost 6% in value. Driving the stock market’s strong start has been bullish momentum …

Is Sector Performance Following History? Read More »

Got Real Estate?

Look at your investment portfolio. Do you have exposure to real estate? Is your exposure broad or is it limited to just one company? Some individual investors feel they don’t need to own real estate inside because they already own a home or condominium. Some may even a vacation home or rental properties located close …

Got Real Estate? Read More »

Energy Sector Crushes Conventional Wisdom

Never mind the abysmal results of first quarter earnings for the depressed energy sector. It doesn’t matter. And never mind the conventional wisdom of group-think and scary analyst warnings like,  “Energy stocks are in deep trouble because Q1 losses will mark the first time any sector in the S&P 500 has reported an aggregate loss since …

Energy Sector Crushes Conventional Wisdom Read More »

Fund Shareholders with SunEdison Get Zapped by Bankruptcy Filing

SunEdison now joins the endless parade of defunct stock market ex-darlings like Enron, eToys, IndyMac, and Washington Mutual. Yes, the circumstances are different, but the results are the same: bankruptcy. Once the largest renewable energy developer in the U.S., the Missouri-based company listed $16.1 billion in debt in its Chapter 11 bankruptcy filing on April 21. SunEdison might …

Fund Shareholders with SunEdison Get Zapped by Bankruptcy Filing Read More »

Globe’s Dullest Sector is Effortlessly Beating the S&P 500

The ho-hum utilities sector is the antithesis of popular stocks like Netflix (NasdaqGS:NFLX) and Tesla (NasdaqGS:TSLA). It’s a hyper un-sexy industry sector that’s been long associated with widows and orphans, rather than hotshot entrepreneurs who like to build rocket ships in the office parking lot. And guess what? The widows and orphans are beating the hotshots! Moreover, the widows …

Globe’s Dullest Sector is Effortlessly Beating the S&P 500 Read More »

Is a Liquidity Crunch in the Solar Sector Ahead?

Stocks in the solar and alternative energy space are getting crushed. Will it lead to a liquidity crunch? Since the beginning of the year, the Guggenheim Solar ETF (NYSEARCA:TAN) has lost a stunning 21.80% in value compared to a +0.20% gain for the SPDR S&P 500 ETF (NYSEARCA:SPY).  And while a 21.8% loss is most …

Is a Liquidity Crunch in the Solar Sector Ahead? Read More »

S&P 500 Investors Get New Choice for Direct REIT Exposure

Real estate investment trusts (REITs) have long been buried inside the S&P 500 (NYSEARCA:SPY) but have now received a giant promotion. S&P Dow Jones Indices and MSCI — the index providers who jointly maintain the GICS system for organizing industry sectors — decided to create a stand-alone real estate sector. As a result, S&P Dow Jones Indices has launched …

S&P 500 Investors Get New Choice for Direct REIT Exposure Read More »

Should You Invest in Market Neutral Funds?

I was recently asked by a reader named M.M. about the benefits of investing in market neutral funds. Equity market neutral funds hold long/short stock positions and aim to capitalize on investment opportunities in a specific group of stocks while keeping neutral exposure to broader groups of stocks either by sector, market size, or country. (Audio) …

Should You Invest in Market Neutral Funds? Read More »

Cyber-Security: An Emerging Sector with Big Opportunities

Cyber-attacks on governments and corporations has become a routine part of the daily news. For instance, the highly publicized cyber-attack on Sony Pictures Entertainment last year underscored the type of greatly feared computerized threat that exists. Besides financial losses, cyber attacks have the ability to disrupt financial markets, invade business privacy, and shut down or manipulate energy infrastructure, weapons defense systems, medical …

Cyber-Security: An Emerging Sector with Big Opportunities Read More »

Conservative Utility Stocks Lose Favor

Last week we told you how dwindling stock market volatility (NYSEARCA:VIXY) and the insatiable appetite for high risk debt (NYSEARCA:JNK) is characterizing the market’s latest episode of fearless risk taking. This time around, there’s another piece of evidence that confirms this scary trend. The chart below shows how S&P 500 utilities (NYSEARCA:XLU) are on the …

Conservative Utility Stocks Lose Favor Read More »

Cyber Security: An Emerging Sector within Technology

The highly publicized cyber-attack on Sony Pictures Entertainment in November 2014 is the type of greatly feared computerized catastrophe that all individuals and institutions face. Although a personal cyber attack can be overwhelming, attacks at the corporate or government level can have dire consequences. In addition to financial losses, cyber attacks have the ability to shut down or manipulate …

Cyber Security: An Emerging Sector within Technology Read More »

Are Momentum Stocks Losing Momentum?

Never mind how the U.S. stock market is posting modest year-to-date losses close to 2%. Momentum stocks are up and so is risk taking. A comparison of the iShares MSCI USA Momentum Factor ETF (NYSEARCA:MTUM) – a good proxy for the risk appetite of bullishly trending stocks – versus the S&P 500 (SNP:^GSPC) shows that momentum stocks have not …

Are Momentum Stocks Losing Momentum? Read More »

Do Rising Auto Delinquencies Spell Trouble Ahead?

Is consumer credit quality deteriorating? TransUnion reports: “While delinquency levels for subprime borrowers have grown from 4.2% in Q3 2012 to 4.5% in Q3 2013 to 5.3% in Q3 2014, the contribution of this segment to the overall delinquency rate has been muted because their share has remained between 14% and 15% during this timeframe. …

Do Rising Auto Delinquencies Spell Trouble Ahead? Read More »

Lower Energy Stocks

Have Energy Stocks Finally Bottomed?

Energy stocks slid 8.7% last year and was the only S&P 500 (NYSEARCA:VOO) industry sector to lose value in 2014. Have energy stocks (NYSEARCA:XLE) really bottomed? FactSet reports: “Despite declining oil prices over the past few months, industry analysts are most optimistic regarding the Energy sector in 2015, based on their current ratings and target price estimates. In …

Have Energy Stocks Finally Bottomed? Read More »

Is it Time for Stock Market Investors to Play Defense?

The U.S. stock market has gained five consecutive years and 9 out of the past 10 years. Put another way, an offensive oriented aggressive approach toward stocks has worked like a charm. Is it time for investors to start playing defense? (Audio) Listen to Ron DeLegge @ The Index Investing Show The consumers staples sector (NYSEARCA:XLP) …

Is it Time for Stock Market Investors to Play Defense? Read More »

Industry Sectors

A Boring Sector with Spectacular Results

“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring,” observed George Soros. Which sector of the stock market fits that description? “Boring” is the one adjective that aptly describes the ho-hum utilities (NYSEARCA:XLU) sector. This particular segment of the stock market has been long associated with …

A Boring Sector with Spectacular Results Read More »