The halfway point of 2017 is nearly upon us and as investors consider market dynamics, there is much to be both excited and worried about. The following are some of the most interesting charts on my radar right now and their implications for your portfolio.
PowerShares QQQ (QQQ)
In my opinion, no other major index can define the resilience of growth stocks better than the NASDAQ-100 over the last several years. This ebullient group of the 100 largest non-financial stocks on the NASDAQ Stock Exchange has now spent 137 trading days above its 50-day moving average. That’s a new all-time record according to Charlie Bilello of Pension Partners. Read more
The world of exchange-traded funds is filled with heavy weight indexes geared towards a variety of stock selection criteria. The venerable SPDR S&P 500 ETF (SPY) is the largest and most heavily traded of the top ten funds by asset size. SPY is known for its meaningful diversification, tremendous liquidity, and low costs. It’s the benchmark by which nearly every stock-focused strategy is ultimately compared against.
Having a benchmark is important because it allows investors the opportunity to compare similar investment styles to determine if a fund is meeting their expectations. It can easily identify consistent trends that are worthy of greater interest or evasion. One such outlier among the largest U.S. stock ETFs is the pattern of outperformance demonstrated by the PowerShares QQQ (QQQ) over the last decade.
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
The churning in the stock market has created little net gain in the major domestic indices over the last four months. In this video, I look at areas of the market that are showing strong momentum, alongside those that should be viewed with caution. Charts include: large cap stocks, technology stocks, U.S. dollar index, emerging markets, interest rates, and municipal bonds. Recorded on October 25, 2016.
The biggest and most heavily-traded ETFs are often the ones that investors default to for stock exposure. The most obvious benefits are liquidity, low-cost, and flexibility to be either long or short the market in size.
For traders, the clear favorites are the SPDR S&P 500 ETF (SPY) and PowerShares QQQ (QQQ). Both of these funds provide broad-based exposure to a wide range of stocks in a single investment vehicle. They are also two of the most heavily traded ETFs in the market on a daily basis. This makes them exceptional tools as either core holdings or tactical trading vehicles. Read more