Friday, June 24, 2011
Our long-term stock market indicators remain bullish -- although they are "medium" bullish and are not flashing the "strongly bullish" signal that they have had for a while.
Saturday, June 4, 2011
- Offers broad diversification to stocks, bonds, and alternative assets.
- Uses concepts of Modern Portfolio Theory to take advantage of one of the few "free lunches" -- diversification.
- Also applies several of our quantitative research to add value based on longer-term technical market action, valuations, and other quant methods.
- Focuses on the lowest-fee-funds and/or funds that offer good diversification benefits.
- Will re-balance infrequently, triggering lower commissions and fewer tax events.
- Investable; you can use your brokerage account and auto-trade the ZETF so you can invest in the broadly-diversified ZETF portfolio, forget about it, and "sleep well at night."
Thursday, June 2, 2011
May was volatile for many asset classes – and the futures & commodities markets were no exception. Some notes on May’s market action:
· Crude Oil: after hitting recent highs to end April ($115/barrel on the July contract), crude oil declined the first 5 days of May (including -9% in a single day) – as it lost -20% (to $95), before consolidating at $100/barrel.
· Gold: similar to crude, Gold hit highs at the end of April near 1580, then collapsed all the way to 1480 – before settling the month at 1540.
· Equity Markets: global stock markets were down in May, with the S&P ending down -1.1% (rallying from a low of -3.5% at mid-month). European markets underperformed due to debt worries.
· Currencies: the US dollar has shown strength as the markets try to sort out economic growth, debt problems, and other key forex drivers.
· Bonds: the fixed income market was one of the better markets for trading programs during May, as the “flight to safety” caused bonds to rise.