Rate Cuts Fail To Stir Optimism

by on July 7, 2012 | ETFs Mentioned:

Stocks kicked off the week to a strong start although profit-taking pressures swept over in the second half just as we warned investors in our Monday edition of ETF Insider. Interest rate cuts from the European Central Bank as well as China’s prompted a surprisingly bearish reaction in the markets; investors gave into selling pressures in the last two days of the week, perhaps suggesting that the most recent rate cuts were interpreted as signs that the global economy is in a much more dire situation than previously thought [see also How To Pick The Right ETF Every Time].

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Week Performance
JJC

Long

-1.8%
UUP

Long

+1.9%
EZA

Long

+0.7%

Our picks from Monday’s Insider fared well during another choppy trading week on Wall Street. Below, we highlight how our trade ideas held up during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every Monday, as well as access to more than 45 all-ETF model portfolios].

Trade #1 Long JJC: Down 1.8%

This pick got off to an encouraging start as JJC kept its head above $44 a share on Monday and gapped higher on Tuesday, soaring as high as $42.25 a share. A bearish reaction across stock markets following the ECB rate cut paved the way higher for the U.S. dollar, and likewise created headwinds for commodity prices, including copper. JJC headed south on Thursday and Friday, gapping lower each day, and ultimately closed out the week just below Monday’s opening price.

Trade #2 Long UUP: Up 1.9%

This fundamentally defensive recommendation was well-timed, seeing as how profit-taking pressures resurfaced as trading resumed after the 4th of July holiday. UUP drifted sideways to start off the week; however, this fund gapped higher on Thursday and managed to extend its gains into Fridays as investors fretted over disappointing nonfarm payrolls data at home.

Trade #3 Long EZA: Up 0.7%

This ETF traded higher in the first half of the week alongside the broad equity benchmark. Surplussing , EZA was able to extend its gain into Thursday, hitting a high of $65.65 a share just before the closing bell. Friday proved to be unforgiving for equity markets around the globe, and EZA headed south. Despite the rather impressive performance earlier in the week, this recommendation ended up just barely above Monday’s opening price, leaving us with a small gain on the week.

ETFdb Portfolios

Retirement ETFdb Portfolios

Our 20 Years Til Retirement and 30 Years Til Retirement portfolios remain at the head of the pack from a year-to-date performance perspective. The Low Volatility Portfolio is holding onto positive returns for the trailing 13-week period, which is very impressive considering its equity-heavy composition.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
5 Years Til Retirement Portfolio -1.09% 0.49% 1.68% 5.95% 12.20% 44.64% 66.82%
10 Years Til Retirement Portfolio -1.49% 0.35% 1.60% 6.66% 13.52% 49.64% 73.27%
20 Years Til Retirement Portfolio -1.72% 0.45% 1.58% 7.52% 15.39% 56.66% 83.02%
30 Years Til Retirement Portfolio -1.95% 0.57% 1.75% 7.43% 15.55% 61.92% 90.63%
Aggressive Portfolio -2.05% 0.44% 0.84% 6.21% 13.00% 45.99% n/a
Cheapskate Portfolio -0.63% 0.79% 3.23% 7.50% 14.08% n/a n/a
Low Volatility Portfolio -1.31% -0.61% 0.77% 4.48% 7.85% n/a n/a
Moderate Portfolio -1.62% -0.23% 0.86% 5.75% 11.55% 40.30% n/a
Ready To Retire ETFdb Portfolio -1.28% -0.51% 1.00% 5.70% 9.98% 30.64% 53.56%

As Of 09-12-2014


Regional ETFdb Portfolios

Our Africa-Centric Portfolio is pulling ahead into double-digit gains territory from a year-to-date perspective as equity markets in this region have remained surprisingly isolated from all of the eurozone debt drama.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Africa-Centric Portfolio -3.46% -1.88% -0.47% 8.55% 16.25% 25.93% n/a
Asia-Centric ETFdb Portfolio -1.80% -0.53% 1.96% 6.71% 11.50% 20.85% n/a
BRIC-or-Bust ETFdb Portfolio -3.20% 1.46% 1.60% 7.04% 11.76% -0.63% n/a
Easy-As-ABC ETFdb Portfolio -2.88% -1.40% 0.17% 1.89% -4.37% n/a n/a
Emerging & Frontier Markets ETFdb Portfolio -2.90% -0.58% 0.72% 6.78% 8.98% 10.58% n/a
Euro Free Europe Portfolio -1.60% -0.07% -4.41% -2.46% 2.74% 33.45% n/a
Ex-Europe ETFdb Portfolio -1.89% -0.47% 1.44% 6.73% 12.27% 37.51% 58.91%
Ex-U.S. Portfolio -2.14% -1.32% -0.56% 3.72% 9.67% 29.72% 35.43%
Global Titans ETFdb Portfolio -0.72% 0.09% -1.29% 2.39% 8.99% 43.74% n/a
LatAm Centric ETFdb Portfolio -2.83% -0.59% 1.12% 1.89% -0.23% n/a n/a

As Of 09-12-2014


Themed ETFdb Portfolios

The Energy Bull Portfolio rebounded higher this week as crude oil futures snapped back, although Friday’s sell off in the energy futures market suggests that the trek uphill won’t be an easy one. The Baby Boomers Portfolio is at the top of the list from a year-to-date performance perspective as health care stocks have posted impressive gains amidst an otherwise uncertain environment.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Actively-Managed ETF Portfolio -0.80% 0.85% 1.68% 4.21% 8.35% n/a n/a
2012 ETFdb Portfolio -1.46% 0.15% 0.25% 6.98% 16.52% n/a n/a
AlphaDEX ETFdb Portfolio -1.83% -0.25% -0.20% 3.62% 10.65% 38.12% n/a
Alpha Seeker Portfolio 2.0 -1.49% 0.50% 2.59% 6.71% 12.86% 42.93% n/a
Baby Boomers ETFdb Portfolio -0.65% 1.61% 4.46% 9.75% 22.05% 95.40% n/a
Ben Graham 50/50 Portfolio -1.50% -0.60% 1.01% 5.09% 10.10% n/a n/a
Better-Than-AGG Total Bond Market ETFdb Portfolio -1.01% -1.29% -0.25% 3.91% 5.70% 7.61% n/a
Black Swan Hyperinflation Portfolio -2.39% -3.75% -4.20% 0.16% -2.23% -12.21% 15.25%
Commodity Guru ETFdb Portfolio -2.06% -2.34% -3.68% 0.51% 2.38% 1.89% n/a
Cheapskate Hedge Fund ETFdb Portfolio -0.13% 1.05% 1.43% 2.48% 2.96% 0.11% n/a
Energy Bull ETFdb Portfolio -2.89% -1.80% -3.51% 3.84% 8.26% 28.89% n/a
Equal Weight ETFdb Portfolio -1.04% 0.24% 2.20% 6.12% 11.18% n/a n/a
Financials Free ETFdb Portfolio -1.53% -0.66% -0.77% 5.62% 12.52% 40.87% 67.69%
Futures Free Commodity ETFdb Portfolio -2.79% -3.48% -3.23% -0.29% -0.51% -13.29% n/a
GLD-Free Gold Bug ETFdb Portfolio -3.99% -8.16% -3.92% 9.60% -5.90% -43.42% n/a
Greedy When Others Are Fearful ETFdb Portfolio -0.30% 1.37% 3.05% 8.69% n/a n/a n/a
High-Tax Bracket ETF Portfolio -0.96% 0.90% 1.59% 6.27% 12.37% 40.37% 60.87%
High Tech ETFdb Portfolio 0.18% 2.60% 8.40% 12.59% 21.83% n/a n/a
High Yield ETFdb Portfolio -1.84% -0.48% 0.50% 6.57% 13.10% 51.50% 79.18%
King Dollar ETFdb Portfolio -1.08% 0.87% 2.02% 6.13% 9.64% 30.16% n/a
Kitchen Sink ETFdb Portfolio -1.27% -0.32% -0.80% 3.09% 7.96% 32.93% n/a
Monthly Dividend ETFdb Portfolio -1.42% -0.46% 0.65% 7.43% 13.61% 43.67% n/a
Pure Growth ETFdb Portfolio -1.38% 0.42% 0.66% 5.14% 12.84% n/a n/a
Pure Value ETFdb Portfolio -1.63% 0.49% -0.24% 6.15% 14.47% n/a n/a
RAFI ETFdb Portfolio -2.07% 0.70% 0.36% 4.89% 14.10% 61.21% 69.82%
Simple (But Effective) Safe Haven ETFdb Portfolio -2.31% -1.67% -2.05% 4.65% 6.87% 21.50% 50.67%
Small Cap ETFdb Portfolio -1.41% -0.11% -0.60% 3.41% 9.99% 42.81% n/a
The Sky Is Falling Portfolio -0.93% -1.44% -2.00% -0.74% -1.43% 2.95% 23.96%
Socially Responsible ETFdb Portfolio -0.85% -0.73% 1.68% 4.27% 10.64% n/a n/a
Risk On ETFdb Portfolio -2.20% -0.13% 0.05% 7.47% 11.77% n/a n/a
Consumer Centric ETFdb Portfolio -1.68% -0.83% -0.12% 2.83% 8.79% n/a n/a
Agri-Bull ETFdb Portfolio -2.32% -0.92% -5.12% 0.87% 3.51% 11.27% n/a
8% Yield ETFdb Portfolio -1.81% -1.24% -1.24% 6.29% 11.91% n/a n/a
Mining Boom ETFdb Portfolio -3.66% -6.15% -1.59% 4.03% -0.14% n/a n/a
2013 ETFdb Portfolio -1.79% 0.09% 0.48% 7.25% 12.53% n/a n/a

As Of 09-12-2014

New ETF Highlights

This month had quite an uneventful start as there were no new launches during the last week. Check out our ETF Launch Center for complete updates on all new ETFs.

Disclosure: No positions at time of writing.