Valuation – ETFguide

Signs of Leadership Change: Growth vs. Value Stocks

Asset Allocation, Fox Feed, Investor Behavior & Psychology, NASDAQ Feed, Partner Feeds, U.S. Stock Market, Valuation, Volatility VIX, Yahoo Feed / By Ronald Delegge

This is an excerpt from Growth vs. Value Stocks: Signs of Leadership Change on ETFguide TV with Lance McGray at Advisors Asset Management. This episode examines: Signs that could trigger a leadership change between growth and value stocks Capturing growth and value without sacrificing quality Understanding how diversification within strategies works Positioning your portfolio for …

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Are Equal Weight Indexes Bias-Free?

Asset Allocation, Fox Feed, Index Investing Show, Investor Behavior & Psychology, NASDAQ Feed, overvalued stocks, Partner Feeds, U.S. Stock Market, Valuation, Yahoo Feed / By Ronald Delegge

Over the past several years there’s been a lot of derogatory talk against traditional market cap weighted indexes. And one of the oft-repeated arguments against traditional indexing that you’re guaranteed to read about or see is something like, “Market cap weighted indexes overweight overvalued large-cap stocks and underweight undervalued smaller-cap stocks.” As a result of these arguments, there’s been a relentless …

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Stock Prices Are Cheap! Valuation Geeks Get it Wrong Again

1 Comment / Asset Allocation, Dividend Income, Federal Reserve, Financial Planning, Fox Feed, Fundamental Analysis, Global Economy, Industry Sectors, Investor Behavior & Psychology, NASDAQ Feed, Partner Feeds, Portfolio Management, Retirement Planning, Sentiment Analysis, U.S. Stock Market, Valuation, Yahoo Feed / By Ronald Delegge

“Stocks are cheap by historical standards” is the latest fiction being promoted by valuation geeks. Is it true? Meb Faber, proprietor of the Cambria Global Value ETF (NYSEARCA:GVAL), and a valuation guru tweeted the 5-year CAPE ratio for the usually frothy technology sector (NYSEARCA:XLK) is just 22 today compared to an elevated 96 at the height …

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Has Momentum Investing Lost its Mojo?

Asset Allocation, Fox Feed, Fundamental Analysis, NASDAQ Feed, Partner Feeds, Portfolio Management, Sentiment Analysis, Small Cap Stocks, Technical Analysis, U.S. Stock Market, Valuation, Yahoo Feed / By Ronald Delegge

Former high flying industry sectors like biotech (NASDAQGIDS:IBB) and social media stocks (NYSEARCA:SOCL) have crashed between 14-16% over the past month. Have hot momentum stocks lost their mojo? One proxy of momentum stocks is the iShares MSCI USA Momentum Index ETF (NYSEARCA:MTUM). The fund owns 100-150 large and mid-cap U.S. stocks that are screened for …

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Ready for the Next Surge in Volatility?

Asset Allocation, Cash and Money Market Funds, Fox Feed, Industry Sectors, NASDAQ Feed, Partner Feeds, Sentiment Analysis, Small Cap Stocks, U.S. Stock Market, Valuation, Volatility VIX, Yahoo Feed / By Ronald Delegge

Is another surge in stock market fear and volatility ahead? Will you be ready when it happens? “Public psychology is the most important single factor in shaping security markets,” said Gerald Loeb. Loeb was right and that’s why we make it a regular habit at ETFguide to track movements and trading opportunities in the CBOE …

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Frontier Markets: Investors Double Up on Risk

Asia Pacific, China, Emerging Markets, Europe, Middle East, Africa, Federal Reserve, Financial Planning, Fox Feed, Frontier Markets, Fundamental Analysis, Global Economy, NASDAQ Feed, Partner Feeds, Portfolio Management, Valuation, Yahoo Feed / By Ronald Delegge

Money is flowing out of risky emerging market stocks (NYSEARCA:VWO), and guess where it’s going? Into even riskier frontier market debt and stocks (NasdaqGIDS:PMNA). The Economist reports: “Investors in America and Europe were hungry to buy dollar-denominated debt offering juicy yields. Zambia drew $12 billion of orders for a ten-year bond paying only 5.4%. Pension-fund …

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Smart Beta Investing: New Paradigm or Word Trick

Asset Allocation, Cash and Money Market Funds, Dividend Income, Financial Planning, Fox Feed, Fundamental Analysis, NASDAQ Feed, Partner Feeds, Portfolio Management, Small Cap Stocks, U.S. Real Estate, U.S. Stock Market, U.S. Treasuries, Valuation, Yahoo Feed / By Ronald Delegge

Is so-called smart beta investing a new and improved way to invest or just another one of Wall Street’s fancy sales pitches? Smart beta strategies (formerly known as “fundamental indexing”) in the investment world generally fall into two camps: 1) Indexes that use a one-dimensional or simple formulas, like equal weighting all the stocks within a benchmark like the …

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Will Dividend Yields Test ’99 Lows?

1 Comment / Asset Allocation, Bonds, Dividend Income, Federal Reserve, Financial Planning, Fox Feed, Inflation and Deflation, Interest Rates, NASDAQ Feed, Partner Feeds, Portfolio Management, Sentiment Analysis, U.S. Stock Market, U.S. Treasuries, Valuation, Yahoo Feed / By Ronald Delegge

The past six years have been brutal for dividend and income investors. Zero percent interest rates have depressed bond yields (NYSEARCA:BOND) and with major stock indexes (^DJI) now trading at all-time highs, dividend yields relative to prices have fallen too. Last year, the number of S&P 500 (NYSEARCA:SPY) stocks paying a dividend touched a 17-year …

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Valuation Models Say Stock Market Losses Ahead

3 Comments / Asset Allocation, Dividend Income, Financial Planning, Fox Feed, Fundamental Analysis, Global Economy, NASDAQ Feed, Partner Feeds, Sentiment Analysis, Small Cap Stocks, Technical Analysis, U.S. Stock Market, Valuation, Yahoo Feed / By Ronald Delegge

Overpaying for anything is a bad idea. But it’s an especially bad thing when it comes to investing in the stock market. James Montier at GMO correctly observes: “Over the years I’ve witnessed many attempts by the practitioners of this most dark art to justify why tried and tested measures of valuation are no longer …

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Is this the Weakest Bull Market in History?

1 Comment / Asset Allocation, Financial Planning, Fox Feed, Fundamental Analysis, Global Economy, NASDAQ Feed, Partner Feeds, Sentiment Analysis, Small Cap Stocks, Technical Analysis, U.S. Stock Market, Valuation, Volatility VIX, Yahoo Feed / By Ronald Delegge

“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one,” said Charles MacKay in his classic book the Madness of Crowds. A closer examination of the U.S. stock market’s (NasdaqGM:QQQ) action shows how the herd is …

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Are Corporate Earnings Being Gamed?

1 Comment / Dividend Income, Financial Planning, Fox Feed, Fundamental Analysis, Global Economy, NASDAQ Feed, Partner Feeds, Portfolio Management, SEC Market Regulation, Small Cap Stocks, U.S. Stock Market, Valuation, Yahoo Feed / By Ronald Delegge

Are corporate earnings really as great as the executives at the helm and Wall Street want us to believe? Over 70% of S&P 500 (^GSPC) companies that have already reported beat analysts’ earnings estimates during the fourth quarter. Furthermore, 66% reported higher sales revenue, which is above four year averages, according to FactSet. Equity permabulls …

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Emerging Market Stocks: Bargain or Value Trap?

2 Comments / Asia Pacific, Central Banks, China, Emerging Markets, Europe, Middle East, Africa, Fox Feed, Global Economy, Latin America, Leveraged Long/Short ETFs, NASDAQ Feed, Sentiment Analysis, Technical Analysis, Valuation, Yahoo Feed / By Ronald Delegge

I was recently lectured on Twitter by a Wall Street strategist about why emerging market stocks (NYSEARCA:EEM) are a raging buy. Among his top arguments for being and staying long were extremely negative sentiment and chart patterns. He was particularly adamant about “depressed values” in Chinese stocks. Interestingly, the view among other strategists that emerging …

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Have Bullish Sentiment Extremes Caught Up with Stocks?

5 Comments / Fox Feed, NASDAQ Feed, Technical Analysis, U.S. Stock Market, Valuation, Yahoo Feed / By Ronald Delegge

Memo to equity bulls: 2014 is not 2013. And thus far, it’s been a bumpy road for stocks. The S&P 500 (NYSEARCA:SPY) broke below 1,800 for the first time this year. Have bullish sentiment extremes finally caught up with the stock market? AUDIO: Listen to Ron DeLegge @ The Index Investing Show Via our Technical …

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