Some Names Are Coming Back

Some stocks that got hit earlier in the month have comeback nicely. Despite a couple of defensive moves taken client accounts seem to to be generally keeping up. This is something I wrote about before. I’m willing to only be up 0.40% on a day the market is up 0.5% right now as was the case on Friday. Today, was a little luckier than that though. It would be wise to wonder about too much euphoria coming back so quickly as seems to be the case right here. I am worried about stock prices, but not rooting for a fall like David Tice appears to do (my opinion). Since I have plenty of US exposure, rooting for a drop would be more about serving my ego (I am afterall concerned about the next few months) than my...

Back

We made it back Sunday night a couple of hours later than planned but none the worse for wear. I hope to have a picture or two posted later. I have an email or two to catch up with, as you might imagine. Stocks look like they will follow through from Friday’s nice lift. Asia was up huge over night and Europe looks like its having a good day too. I should look at my Trader’s Almanac to see if Halloween is usually a good day. While I was away I sold Google. For the first $15 I was wrong because the stock has kept going but I had a general price target in mind and stuck to it which isn’t the worst thing in the world either. Time to start in on those emails. I will post more,...

Coming Home

We are winding down our visit to New Zealand. As write this it is Saturday morning and we are getting ready to leave where we have been staying and head to Auckland, where we will catch our flight on Sunday. We are going to check out Auckland as the last part of our vacation. We take off Sunday around 7:30 pm and arrive in LA around 10:30 am on Sunday. We’ll be home around dinner time on Sunday and things will be back to normal Monday. What a trip. I’ll post a picture or two for those that are...

Maybe Its Just Me

I analyze ETFs in a manner that makes them useful for me in portfolio construction. I do what I can to relay that process through to this blog. As a top down manager I start by assessing what parts of the market I want overweight or underweight. Then I seek out what I hope will be the best tools to shape the portfolio. I think my process for analyzing ETFs, or any product for that matter, is quite simple as I think simple is usually better. It doesn’t take much to look under the hood, take a look at what is there and get some idea of how close the components of a given ETF might bring you to what you are trying to get. For example I wrote a piece about the materials ETFs for Real Money.com. The ETFs are heavy in Chemicals and have no real correlation to the natural resources part of the sector. So if you want diversification within the materials sector an ETF alone won’t cut it. This is not very complicated but I continue be be amazed at the lack of quality insight in more mainstream media. The latest example is an article from Morningstar rerun on MSN called 5 Big Myths About ETFs. Here are the myths that Morningstar debunks; ETFs are getting all the fund flows. ETFs must perform better than mutual funds. ETFs are always the cheapest option. Online brokerage fees have dropped, so it’s safe to dollar-cost average into ETFs. ETFs’ structure always makes them the more tax-efficient choice. I hope you read the article. Honestly I can’t find...