The gift that keeps on giving: Sell the euro above 1.37.
This trade has consistently made money for Citigroup clients who've paid attention to the the firm's FX strategist Valentin Marinov. Once again today he's advising clients to sell the euro, based on three relationships suggesting it is overvalued.Read more »
What if you could have your cake and eat it too?
JPMorgan strategist Jan Loeys seems to think you can:
Ultra-low prices. Increasing market share. Frustrated competitors.
Those category-killing attributes make Vanguard Group Inc. the Wal-Mart of exchange-traded funds. Since 2010, its market share has grown from about 15 percent to 20 percent, while that of its big rivals, BlackRock's iShares and State Street's SPDRs, has slightly declined. And while all three have gained new assets this year, Vanguard leads with $51 billion, or 32 cents out of every dollar invested in an ETF, up from 28 cents last year. It has seen 21 of its 67 ETFs grow by at least $1 billion in 2013. The unique structure and low cost of its products suggest the momentum will continue.Read more »
Every aspect of the modern luxury store conspires to seduce the shopper, from the lighting, color scheme and music to the carefully placed product "altars" designed to draw visitors deeper into the shop.
New marketing research is shedding more light on what retailers have known for a long time: How we shop has as much to do with our mental state as with our material needs. People shop because they’re sad, and splurge because they’re feeling guilty or insecure. With retailers using every trick to get us in the mood to spend, shoppers unaware of their emotional vulnerabilities may find themselves regretting their holiday purchases and buried in debt.Read more »
"Stop it. Just stop it," you said. "Stop with the personal finance books. Twelve ways to build my nest egg. Six ways to retire at 60. Sixty ways to retire at 6. What would the Buddha do with $5,000 and the right ETF? I can't take it anymore."
Well, you know what? Neither can they.Read more »
The world is awash in meaningless statistics. As a personal-finance reporter, I sometimes worry I'll be among the first to drown in them.
Financial firms inundate my peers and me with polls, surveys and studies -- some three dozen of the things scurried into my in-box in the past month. Many are of dubious intellectual value. Did you know, for example, that 49 percent of Charles Schwab & Co. clients say now’s a good time to invest in stocks? Yup. A perfectly ambiguous percentage of Schwab investors -- short of a majority yet not a distinct minority -- are bullish on equities. With all due respect to the discount brokerage, why should we care?Read more »
It sounds more like a souped-up race car than a fund: the db X-trackers Harvest CSI 300 China A-Shares Fund (ASHR). As the first exchange-traded fund to give U.S. retail investors exposure to hard-to-access China A-Shares, which had been available only to Chinese citizens and a few qualified foreign institutions, it's generating a lot of buzz.
China A-shares make up roughly two-thirds of the market capitalization of Chinese stocks, so investors in existing China ETFs lack exposure to the majority of Chinese stocks, although some companies have dual listings in China and Hong Kong. The new ETF, which attracted $106 million in assets in four days, tracks the 300 largest companies trading on the mainland, on the Shanghai and Shenzhen exchanges. Previously, investors could only get exposure to Hong Kong or U.S.-listed Chinese companies. While this greater access to Chinese stocks is a welcome development, ASHR and similar ETFs in the works come with significant drawbacks.Read more »
The action in exchange-traded funds investing in India started heating up the day after Labor Day. Since then, the funds have had a 28 percent run that erased most of the losses they'd suffered this year, while the broader emerging markets are up 10 percent. ETF investors who want to amp up their exposure to India have options ranging from a broad basket of mostly large-cap stocks to a far riskier bet focusing on small-caps.
The rally began when Raghuram Rajan was appointed the new governor of the Reserve Bank of India. Rajan, a former economist at the International Monetary Fund, has a modern vision for India’s economic future. He's taken steps to curb inflation, one of the India's biggest problems, including an interest rate increase that helped stabilize the currency. The market's reaction to Rajan calls to mind the 16 percent rally in Japanese stocks after the election of Prime Minister Shinzo Abe last November. Both men are respected by investors, but have very different problems to solve, notes Jeremy Schwartz, director of research at WisdomTree. Abe is wrestling with deflation.Read more »
November 1 means the annual mad dash by hedge fund managers to maximize year end performance. They stand to take home 20 cents on every dollar earned over the next 2 months. So the stakes are high, especially since villas on St. Barths in February don't come cheap!
Fortunately, the analytics team at Ned Davis Research (www.ndr.com) has run the numbers and determined the single best performing sector in November and December since 1985: Industrials.Read more »
As we head into the home stretch of 2013, several exciting ETF races are in progress. The questions swirling around some of the market's leading exchange-traded funds: Which one will fall from its perch as the largest of its peers? Which will be the champion of cash inflows for the year? Will one of the biggest, most badly battered exchange-traded funds come back to life by yearend? Here's your ETF racing form.
1. The Battle to Be Bond King