State Street has had a tremendous advantage in the exchange-traded fund world by being the first issuer of dedicated sector funds. Their highly successful SPDR sector series debuted in 1998 and has spent nearly two decades building a world-class reputation. Everyone from professional to novice investors respect SPDR ETFs for their liquidity, transparency, low-costs, and tax efficiency. Read more
Let me know if any of these narratives sound familiar to you:
2013 Analyst: “We are deeply concerned about the sharply rising 10-Year Treasury Yield as a headwind for stocks. The end of quantitative easing and the Federal Reserve’s unprecedented monetary policies may forestall further gains in equities.” Total return of SPDR S&P 500 ETF (SPY): +32.31%
2014 Analyst: “A sharp drop in virtually all commodity prices may be signaling a contraction in the global economy and warrant reducing exposure to risk assets. Furthermore, the strongest performing asset class is the 30-year Treasury bond, which is a virtual assurance of the coming apocalypse.” SPY total return: +13.46% Read more
January was a rough month in the stock market by almost any metric. From an index standpoint, the U.S. concentrated SPDR S&P 500 ETF (SPY) dropped 5.07%, while the globally oriented iShares MSCI ACWI ETF (ACWI) fell 5.30%. Both benchmarks would have been substantially worse if not for a late month rally that was spurred by oversold conditions alongside a sizeable rally in crude oil prices.
Many investors are now succumbing to the realization that volatility happens quickly and with little advance warning. In fact, several high growth sectors experienced jaw-dropping moves in the month of January that are good examples of how quickly gains can evaporate in the midst of adverse conditions.
Investors have been flocking to the safety of treasury bonds in recent months as volatility in stocks has pressed interest rates markedly lower. In many instances, this has caused traditional treasuries to rally near the top end of their 52-week highs and may indicate a greater risk of rich valuations fighting with waning momentum. Nevertheless, one area of the Treasury market has just started to perk up and may be signaling further strength on the horizon. Read more
In this video series, we take a look at the panic that has gripped the stock market in the first month of 2016. This review includes several key charts, trends to watch, and important levels we are monitoring at this time. Recorded after the market close on January 28, 2016.