To this point in 2010, investors around the globe have paid close attention to every development in the euro zone, as crumbling public finances in the region have threatened to spark a wave of crippling defaults and have called into question the sustainability of the common currency. Most of the attention has focused on Greece, where a skyrocketing public deficit has set the stage for a downgrade of sovereign debt to below investment grade. [click to continue…]
Over the last year, a tremendous increase in the amount of ETF education has significantly reduced the likelihood of misuse by professional or amateur investors. By now, hopefully everyone knows that the United States Natural Gas Fund (UNG) doesn’t actually buy and hold natural gas and that USO’s underlying assets don’t include barrels of crude oil. But still, the research done by many ETF investors stops at the fund’s name, and perhaps a cursory look at the expense ratio. While the transparency and simplicity of most ETFs allow investors to get away with going light on the diligence, this doesn’t always hold true. Below, we take a look under the hoods of four ETFs to discover some surprising nuances about a number of exchange-traded funds. [click to continue…]
Most European equity markets have fallen sharply through the first six weeks of 2010, as worries over an escalating crisis in Greece have spread throughout the region. Both broad-based funds and country-specific ETFs are far in the red: the iShares MSCI EMU Index Fund (EZU) has lost more than 10%, while the MSCI Spain Index [...]
Markets have been off to a rough start in 2010 with most major benchmarks falling more than 5% year-to-date and sparking fresh fears over a double-dip recession. Relatively few asset classes have gone unscathed as equities, both domestic and international equities have dropped in tandem with commodities. While some see this as a long-overdue downward [...]
The tremendous increase in the number of ETFs launched in recent years has seemingly brought cheap, efficient access to nearly every corner of the globe within reach of U.S. investors. There are now funds devoted to Vietnam, Turkey, Israel, Colombia, among countless others. But while the breadth of international options has expanded significantly, the exposure [...]
Despite a third quarter return to growth in the 16-country euro zone, Spain’s economy has continued to contract as fallout from the collapse of the nation’s construction industry continues to wreak havoc on unemployment rates and equity prices. The road to recovery got a bit rockier on Wednesday, as Standard & Poor’s lowered its ratings [...]
Thanks to strong economic recoveries in Germany and France, the 16-country euro zone has now officially exited its worst recession in a half century. According to data released on Friday, the euro zone grew by 0.4% in the third quarter, compared with a 0.2% decline in the second quarter. Although the news strengthened hopes of [...]
Over the last year, swine flu has been the news story that just won’t die. After an early initial scare, H1N1 faded into the background of the minds of many for several months, before returning in full force as flu season approached. Of course, the threat posed by the disease never really diminished, and health [...]
Early Friday morning, eyes around the world will be focused on Copenhagen, Denmark, where the International Olympic Committee (IOC) will announce the host city for the 2016 Olympic and Paralympic Games. The announcement ceremony figures to be quite a spectacle, with heads of state from the four finalists expected to make last minute pleas for [...]
Over the weekend the Spanish government approved a 2010 budget featuring significant tax hikes to support increases in government spending. Spain has seen spending surge over the last year as the country attempts to avoid a prolonged recession that some analysts fear could result in a “lost generation” similar to Japan’s fate following the Nikkei [...]
Over the past several months, concerns over the fallout from the massive stimulus plans, rising unemployment, and continued weakness in corporate earnings have left many investors rethinking their allocations to U.S. equities. Once considered an essential element of any portfolio, American stocks have fallen out of favor with some investors who have shifted assets towards [...]