Dividend ETFs are an important component in income investors’ portfolios. With the need to generate reliable cash flow in today’s zero-interest-rate-environment comes some complacency in that it is assumed that dividend producing ETFs provide a better buffer against sharp market downturns. I had this conversation with several readers recently, and it is simply an incorrect assumption. Take a look at …
Sunday Musings: Long Term Investment Opportunities
In various past posts, I have mentioned that it is my belief that, economically speaking, we’re heading down a similar path as Japan did over the past 20 years. Nothing was learned from their burst real estate bubble, and the same policy mistakes (bailing out failed banks, senseless stimulus packages, etc) have been made and are continuously being implemented. I …
Reader Q+A: M-Index Rankings
Reader Frank had the following question: You say that you sort the stat sheets by the M-index. For funds that have the same M-index are they truly in descending momentum sequence? For example, there may be 10 or 15 funds with an M-index of 4. Does the 1st #4 fund have a higher momentum than the 2nd or are they …
No Load Fund/ETF Tracker updated through 9/16/2010
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpSlow and steady was the theme of the week, as the S&P; 500 knocked against overhead resistance. Our Trend Tracking Index (TTI) for domestic funds/ETFs held above its trend line (red) by +3.74% (last week +3.03%) and remains in bullish mode. The international index broke back above its long-term trend line …
Bumping Against Resistance
So far, overhead resistance, pegged to be the 1,130 level of the S&P; 500, held twice yesterday, as the index backed off, but still closed within striking distance. It seems to me that the rally from the lows of the trading range appears to be getting a little tired as the market may have gotten way ahead of itself. Evidence …
Gold Closes At A Record
While the S&P; 500 slipped yesterday, after 4 days of gains, gold rallied and closed at a record high. Speculation has it that the Fed will purchase some $1 trillion in bonds to support the economy. At the same time, the dollar fell, which helped silver and commodities and pushed interest rates lower. The major indexes, with the exception of …