ETF investors are generally split into one of two crowds. Those that seek out the lowest cost funds for reliable correlation to the capital markets and those that jump on the hottest trends to try and ride a new wave of top-tier performance. The former is typically sticky money in the most diversified and time-tested indexes on the planet. The latter tends to jump around with every new cycle by reducing exposure to the weakest asset classes and increasing position size in areas showing the greatest momentum.
Then there are the anomalies. The outliers. The unexplainable trends driven by perception, fear, or some other phenomenon. It’s this category that I find so interesting to observe because of the unwavering conviction that flies in the face of normal behavioral patterns.
In this month’s video, I look at the technical trends developing in stocks and bonds. Chart review includes analysis of large-cap, small cap, international, Treasury bonds, and gold prices. Observations of risk and reward are noted throughout with an emphasis on moving averages as a source of support or resistance. Recorded on April 11, 2017.
In this month’s video, I look at key trends developing in global stock and bond markets. Chart review includes analysis of large-cap, small cap, emerging market, high yield, interest rates, and gold prices. Observations of risk and reward are noted throughout with an emphasis on caution for new money at this phase of the rally in stocks. Recorded on March 7, 2017.
The strength of broad domestic stock market indices in 2017 has been the dominating story in global financial markets. The expectation of new government policies, coupled with the lack of risk asset volatility, has many investors feeling confident in a continuation of the bullish trend.
As of last week, ETFs trading in the United States have accumulated over $75 billion in fresh capital inflows since the start of the year. The majority of that money has gone towards stock-focused index funds such as the SPDR S&P 500 ETF (SPY).
Everywhere you look now, someone has an opinion about the direction of the markets under a Trump presidency. There is speculation on everything from the impact of his trade policies to the potential of further deficit spending and legislative changes. These factors have coalesced to send many sectors of the stock and bond markets into a tizzy as investors grapple for positioning. Read more