Larry Swedroe: Use Valuations for Expected Returns, Not Market Timing

Yesterday I linked to Larry Swedroe’s excellent piece on asset allocations and valuation at ETF.com. I wanted to pull out the most salient point here because I think it’s so crucial for investors to understand. The debates about CAPE and valuation that rage constantly in the media usually center around a “should you buy or sell”…

Chart o’ the Day: Not All Sectors Bouncing Equally

I put together a quick and dirty chart look at S&P sector ETFs for context surrounding the recent bounce… The blue lines in the charts below represent each sector SPDR’s 20-day moving average while the red lines represent the 50-day. In these two-month charts at a glance, we see that Utilities and Staples have been…

The Riskalyze Report: Dash for Cash

Welcome to week 3 of my new recurring feature, The Riskalyze Report. My friends at Riskalyze have offered me the opportunity to see which stocks and funds advisors all over the country are adding to their clients’ accounts and which ones they’ve been selling. Each week I’ll present you with the top three buys and sells…

Poster Children

IBM, Coca-Cola and McDonalds are three of America’s largest corporations and most well-known brands. They are true multinationals in every sense of the word and they dominate their industries both at home and abroad. They are numbers 23, 58 and 106 on the Fortune 500 list, respectively. Together, they make up 12 percent of the…

Big Oil vs You: Who means more to the economy?

What’s better for the economy, weak oil prices or strong ones? What’s more beneficial for US economic growth, strong profits and capex spending by Big Oil or less pain at the pump for consumers? Economists have been batting this issue back and forth as oil has slid lower for the last three weeks. The global…

Chart o’ the Day: A look at the 12-month moving average

Jon Krinsky’s technical note for MKM Partners this week is entitled “The Game Has Changed… V-Shaped Bottom Unlikely” and, while not bearish, he is very skeptical that last week’s low will be the low for the current correction. He notes that breadth was terrible despite Friday’s bounce and that we’ve now spent a week below…