How Crucial Is The Euro Exchange Rate?

Ulli Europe Contact

91551519There has been a divergence of opinion recently among the eurozone policymakers over the common currency’s valuation. While French President Francois Hollande had called for the euro’s devaluation, Bundesbank chief Jens Weidmann ruled out any intervention by the European Central Bank, stating the euro’s valuation is in line with the region’s fundamentals and any currency manipulation may result in higher inflation later.

Peter Bofinger, economics professor at the University of Wuerzburg in Germany and an economic adviser to German Chancellor Angela Merkel, thinks the ECB should keep an eye on the euro since a strong currency can harm exports.

Asked to comment about Jens Weidmann’s (German central bank chief) position in the ECB, Peter said the Bundesbank is a bit isolated in the ECB, but the more important point is that the OMT announcement by ECB President Mario Draghi has really helped to stabilize the region’s economy and Jens is happy about it.

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New ETFs On The Block: First Trust Preferred Securities And Income Fund (FPE)

Ulli Income ETFs Contact

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First Trust, the Wheaton, Illinois-based investment manager and exchange-traded funds provider, has launched the First Trust Preferred Securities and Income ETF (FPE), the first actively-managed preferred securities fund. The new ETF aims to provide robust current income by primarily investing in preferred securities and income-producing debt securities including corporate bonds, convertible securities and high-yield securities.

The fund portfolio consists of about 80 companies with low concentration ratio for the top ten funds to avoid Concentration Risk and offer better diversification. Stonebridge Advisors, a specialist in hybrid and preferred securities manages the portfolio and serves as the fund’s sub-advisor.

FPE is focused on financials with insurance (20.74 percent), commercial banks (19.50 percent), real estate investment trusts or REITs (17.73 percent) and capital markets (14.75 percent) being allocated the top slots. Diversified financial services (5.01 percent), consumer finance (3.50 percent), diversified telecommunication services (3.50 percent) and wireless telecommunication services (2.49 percent) are the other important holdings of the fund. However, the fund is classified as “non-diversified” and hence, may invest a relatively high percentage of assets in a handful of issuers.

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02-15-2013

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For Friday, February 15, 2013

ETF/No Load Fund Tracker StatSheet

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THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:

https://theetfbully.com/2013/02/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-02142013/

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Market Commentary

Friday, February 15, 2013

US STOCKS SLIDE AS WAL-MART WEIGHS AMID ECONOMIC DATA; EUROPE FALLS AHEAD OF G20 MEETING

US equities closed mostly lower Friday with the S&P 500 snapping three days of gains in choppy trading as positive economic data was pummeled by worries over weak retail sales numbers.

Stocks tumbled in afternoon trading after Bloomberg reported a Wal-Mart executive termed the world’s biggest retailer’s February sales a total disaster in an internal mail. Wal-Mart fell 2.2 percent amid the worst sales start of a month in seven years. The retailer’s sales slowdown indicates the consumer is not as ready to come back as Wall Street was hoping.

Among economic reports, the University of Michigan/Thomson Reuters consumer sentiment index rose to a preliminary February reading of 76.3, the highest level since November, from a final January reading of 73.8.

Separately, a New York Federal Reserve report showed manufacturing picked up unexpectedly in February, with the Empire State manufacturing index moving into positive territory for the first time since July. Also, industrial production nationwide shrank by 0.1 percent in January after posting the biggest consecutive gain in three decades in the final two months of last year.

The Dow Jones Industrial Average (DJIA) climbed 8 points to close at 13,982, still lower 0.1 percent for the week while the S&P 500 Index (SPX) fell 2 points to 1,520 with energy sliding the most and telecommunications fronting the gains among its 10 business groups. The index, however, added 0.1 percent for the week, completing a seventh straight week of gains, the longest string of gains since January 2011.

Treasury prices fell, pushing yields up after economic reports showed manufacturing in the New York region jumped and consumer confidence rose to its highest level since November, diminishing demand for safer assets.

The Japanese yen’s rebound was cut short on Friday on anticipation the Group of 20 industrial and developing countries won’t single out Tokyo for pursuing a weaker currency.

Meanwhile, European stocks edged lower Friday as investors grew wary of equities ahead of a meeting of G20 finance ministers and central bankers in Moscow amid rising global currency skirmishes.

The Stoxx Europe 600 index dropped 0.2 percent to close at 287.34, leaving the index unchanged for the week and halting a two-week decline. The pan-European benchmark has gained 2.7 percent so far this year.

Our Trend Tracking Indexes (TTIs) pulled back slightly from last week’s close and ended as follows:

Domestic TTI: +3.01% (last week +3.35%)

International TTI: +10.51% (last week +11.04%)

Have a great week.

Ulli…

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READER Q & A FOR THE WEEK

All Reader Q & A’s are listed at our web site!
Check it out at:

http://www.successful-investment.com/q&a.php

A note from reader Mike:

Q: Ulli: Thanks for all the support and work you do for ‘the little guy’!

In a recent Weekly StatSheet, ETF Master List (Excel file) there were several ETFs showing zero values and “-100.00%” DD% (XGC,ISI,XRO,HHH,PIV,TTH,BDH,IAH,IIH and FXM).

Was this correct or an ‘anomaly’?

A: Mike: No, as stated, when funds are marked zero or -100% it simply means that price data was not available at the time of publication…

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WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?

Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly or get more details at:

https://theetfbully.com/personal-investment-management/

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Back issues of the ETF/No Load Fund Tracker are available on the web at:

https://theetfbully.com/newsletter-archives/

ETF/No Load Fund Tracker Newsletter For Friday, February 15, 2013

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

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THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:

https://theetfbully.com/2013/02/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-02142013/

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Market Commentary

Friday, February 15, 2013

US STOCKS SLIDE AS WAL-MART WEIGHS AMID ECONOMIC DATA; EUROPE FALLS AHEAD OF G20 MEETING

US equities closed mostly lower Friday with the S&P 500 snapping three days of gains in choppy trading as positive economic data was pummeled by worries over weak retail sales numbers.

Stocks tumbled in afternoon trading after Bloomberg reported a Wal-Mart executive termed the world’s biggest retailer’s February sales a total disaster in an internal mail. Wal-Mart fell 2.2 percent amid the worst sales start of a month in seven years. The retailer’s sales slowdown indicates the consumer is not as ready to come back as Wall Street was hoping.

Among economic reports, the University of Michigan/Thomson Reuters consumer sentiment index rose to a preliminary February reading of 76.3, the highest level since November, from a final January reading of 73.8.

Separately, a New York Federal Reserve report showed manufacturing picked up unexpectedly in February, with the Empire State manufacturing index moving into positive territory for the first time since July. Also, industrial production nationwide shrank by 0.1 percent in January after posting the biggest consecutive gain in three decades in the final two months of last year.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 02/14/2013

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, February 14, 2013

Table of Content082312

If you are not familiar with some of the terminology used, please see the Glossary of Terms.

 

1. DOMESTIC EQUITY MUTUAL FUNDS/ETFs: BUY — since 10/25/2011

TTI

The domestic TTI broke through its long-term trend line generating a Sell for this area effective 8/9/2011. Over the recent past, we’ve seen the TTI hovering slightly below and above this dividing line between bullish and bearish territory. The clear break to the upside occurred on 10/24/11 and, effective 10/25/11, a new Buy signal for domestic equities went into effect.

As of today, our Trend Tracking Index (TTI—green line in above chart) has bounced off its long term trend line (red) by +3.24% as part of the post election rebound.

To avoid a potential whip-saw, a Sell signal to move out of all domestic equity positions will be generated once we have clearly pierced the line to the downside. Be sure to tune into my blog for the latest updates.

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Stocks Barely Move On European Concern; Recession Weighs On Europe

Ulli Market Commentary Contact

Thur pic

[Chart courtesy of MarketWatch.com]

US stocks barely budged after another day of low volume trading as shrinking economies in Europe and Japan overshadowed better-than-expected jobless claims on a banner day for M&A deals.

The US jobless claims fell by 27,000, the most in a month, to 341,000 in the week ended Feb 9, a Labor Department report showed; that is until it will be revised again to a much higher number.

However, international economic news was far from encouraging. Recession in the euro-area deepened as gross domestic product in the 17-member currency zone shrank 0.6 percent over the third quarter, and fell 0.9 percent over the same period in 2011, the European statistics agency Eurostats revealed today.

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