In response to the financial crisis of 2008, the Fed injected unprecedented levels of liquidity into the banking system. While inflation has been modest to date, an analysis of similar periods in history shows that it typically takes more than two years for the impact on consumer prices to be seen. Consequently, we are now at a pivotal point in the current cycle as Fed stimulus began more than two years ago. [Let me explain further.] Words: 2755
June 3rd, 2011 | Posted in Economy,Inflation/Deflation | Read More »
A number of secondary indicators are showing worrisome negative divergences… indicating that the risk-reward tradeoff [for stocks] is becoming increasingly unfavorable. [As such,] the prospect of selling in May and going away is starting to sound good right now. [Let me explain.] Words: 536
March 28th, 2011 | Posted in Investing,Stock Indices | Read More »
Crude oil, natural gas, gasoline — our civilization can’t live without them. So it’s no surprise that energy exchange traded funds (ETFs) are also big business. Today I’m going to give you a brief overview of the ETFs in this sector. As you’ll see, energy is a surprisingly diverse industry. Words: 870
May 11th, 2010 | Posted in Investing,Mutual/ETFunds | Read More »
While ETFs offer numerous advantages over traditional actively-managed mutual funds and individual stocks – near total transparency, intraday trading, and a (generally) more straightforward tax situation – they aren’t foolproof, and there are plenty of opportunities to make mistakes while investing in ETFs. Words: 1991
April 30th, 2010 | Posted in Investing,Mutual/ETFunds | Read More »