Financial Select Sector SPDR (XLF)

All Comments on XLF

  • commenter
    toner cowboy
    Oct 05 05:23 PM
    Inflate, Deflate or Default [view article]
    Inflationdata .com say inflation is up 2073.23% since 1913. What has changed to stop the trend? Reply
  • commenter
    Shiv
    Oct 05 01:09 PM
    My Website
    Global Market Roundup: Will the Bailout Work? [view article]
    The rescue package will take time to work its magic. And while people watch for indicators of success from implementaion of the rescue package, there is a possibility that better opportunities might emerge. This is time when perceived risks are higher than real risks. In the short term, corporations may well find earnings potential fall below long term earnings potential; and this might cause better entry points. However several economic risks are already priced in. This is a market for long term investors (5/6 years). Sector allocation is important, overweight positions need to determined based on which sectors will benefit most during the next cyclical upswing; also to consider is over-weighting the presently undervalued sectors; and finally consider the sectors which outprform based on where we are in the economic cycle today. Investors should also not forget to rebalance portfolios more frequently than in normal times. Finally, do not forget diversification across asset classes. Its a good market for traders too; volatility is high which is good for day traders. Positional traders can also look forward to an up quarter followed by a re-test of lows. This is one of those times when there is opportunity for everyone, regardless of style - short term/long term/trader/bull/bear. The only styles I would say might feel a bit left out is growth; because I think this is a time value will outperform and off course, small caps should lag large caps. Reply
  • commenter
    Randy_H
    Oct 05 11:27 AM
    My Website
    Inflate, Deflate or Default [view article]
    Russia proves my point. They defaulted. They did not willingly transfer their wealth outside of their borders servicing foreign debt by printing money. They told their debtors to get lost. You'll find that pretty much all hyperinflations since WWII have been caused by/overseen by the IMF, which only holds sway over weak countries. Reply
  • commenter
    Bill James
    Oct 05 09:00 AM
    My Website
    Global Market Roundup: Will the Bailout Work? [view article]
    End government control over rights of way, implement Performance Standards for power generation and transportation and in 6 years. seekingalpha.com/artic...

    Building the Physical-Internet will likely working family disposable income can increase by $3,200 per year. www.jpods.com/ar_Burde...     Reply
  • commenter
    User 179191
    Oct 05 08:55 AM
    Global Market Roundup: Will the Bailout Work? [view article]
    Excellent review! The Doom & Gloom scenario seems almost universal - indicating that perhaps the worst has already been discounted. But "hold on" for more volatily until the dust settles and investors begin looking past the devastation to the inevitable economic and market recovery. Reply
  • commenter
    mangolfer
    Oct 05 08:39 AM
    7 Rules For Investing During the Fourth Quarter [view article]
    Definitely not going to invest long oil. Why would anybody buy now when the whole world is trying to use less, still hurting from the current price levels and looking for alternatives??? Reply
  • commenter
    gamma65
    Oct 05 01:18 AM
    My Website
    What To Do in a Rebuilding Year [view article]
    The equity and bond markets have benefited from a long period of low inflation, but ongoing and massive central bank liquidity injections point to a far less benign environment of elevated inflation ahead. Research by our firm, Agcapita Farmland Investment Partnership (Calgary, Canada based agriculture private equity firm – farmlandinvestmentpart...) shows investors must be prepared to rotate into asset classes with different characteristics. During the last commodity bull market & high inflation period in the 1970’s, equities materially underperformed farmland.
    - Western Canadian farmland went from around $100/acre to $550/acre (550% total return and 176% in inflation adjusted terms);
    - Cash held in a money market account barely kept ahead of inflation (6% inflation adjusted return); and the
    - S&P 500 index returned less than 2% per year (a loss of almost 50% in inflation in adjusted terms)

    We believe the world is still in the early stages of this current commodity bull market. When agriculture commodities prices are compared against their previous inflation adjusted highs they are significantly discounted implying scope for further increases:
    - Corn is US$ 5/bushel currently compared to US$16/bushel in 1974,
    - Wheat is US$ 7/bushel currently compared to US$27/bushel in 1974
    - Canadian farmland is C$ 660/acre currently compared to C$1,100/acre in 1981

    Another interesting metric is the long-term average ratio of the Commodities Research Bureau Index versus the S&P 500 which is currently around 1.5 times. Simplistically, this ratio indicates how much S&P 500 stock you can buy with a fixed basket of commodities. Some important points:
    • During the commodity bull market of the 1970s, the ratio was consistently higher than 2 times for over 10 years – it peaked at almost 4 times.
    • The ratio is currently at around 0.5 times - significantly below the 1.5 times long-term average, just slightly above the 0.15 all time low reached in 1999/2000 and still very far below the almost 4 times multiple reached in the last commodity bull market. We still appear to be at an all time low relative valuation between “hard assets" versus "stocks.”
    • If history is a guide, the ratio of hard assets to stocks will have moved much higher before this commodity bull market is over.
    • How? Stocks will continue to fall and/or commodities will continue to climb – most likely a serious combination of both as investors, fearing inflation, rotate out of stocks into commodities – the cycle of “inflation, rotation, hard assets”.
    Agcapita is a Calgary based, agriculture private equity firm that allows investors to cost effectively allocate a portion of their portfolios to hard assets in the form of Canadian farmland via its professionally managed Agcapita Farmland Investment Partnership. Agcapita Farmland Investment Partnership is the third in a family of private equity funds which has grown to almost $100 million in assets under management. Agcapita’s investment team has over 40 years private equity and fund management experience and over $1 billion in total career transactions and previously managed a group of emerging market funds with almost C$500 million in assets for one of the largest banks in Europe.

    Reply
  • commenter
    slouch
    Oct 04 10:23 PM
    7 Rules For Investing During the Fourth Quarter [view article]
    pssst... "cornerback" should be "quarterback"... Reply
  • commenter
    User 240862
    Oct 04 09:02 PM
    So Much for the Bailout [view article]
    Throw the rascals out!
    Vote any third party, or write in a candidate of your choice!
    The Dem/Rep-Rep/Dems should go the way; of Mexico's PRI!
    "We The People" have forgotten that "We are the purpose; not D.C./NYC 'Aristocracy'!
    Roy Stewart,
    Phoenix AZ     Reply
  • commenter
    LarrySF
    Oct 04 08:22 PM
    So Much for the Bailout [view article]
    Why would legal reserve life and annuity insurance companies be the next in line? Can you defend your position considering their general account reserves? Reply
  • commenter
    Y.I.
    Oct 04 07:31 PM
    So Much for the Bailout [view article]
    I totally disagree -- I didn't know about CDARS, and that alone made this article worthwhile.

    Thank you Felix!     Reply
  • commenter
    Taxpayer's
    Song
    Oct 04 07:24 PM
    Read It and Weep for the USA [view article]
    Who will bake the bread? Answer? The taxpayer. Who will eat the bread? Answer? The rich and the so called poor that don't and won't work. Who will starve during the process? Answer? The hard working honest taxpayer when there is nothing left for themselves. Who will die from the process? The taxpayer first, then the so called poor, then the rich criminals on wall street. Why will all of them die? Well when the taxpayers have all starved to death then there will be no one left to work to feed the rich wall street CEO's and their boards or the so called poor that won't work who has learned to operate the system of government to get all the free handouts, then last to die will be the government and its leaders because the taxpayers are all dead and there will be no one any longer to pay interest on their hog trough trillions of dollars of debt, and they won't be able to borrow from other countries because they too will refuse them credit and then the government like Wall Street and those who ran out on their mortgages and credit card debt will see their final judgement day. . Read my lips Congress and President Bush: GOD IS NOT MOCKED FOR WHATSOEVER A MAN SOWS THAT SHALL HE ALSO REAP. The hardworking, honest, God fearing taxpayers are God's People and you shall reap what you have sown on them when judgement day comes for you. It will come just when you laugh at us and ask: Where is your God? Rest assured He will be here. Reply
  • commenter
    look closer
    Oct 04 06:24 PM
    So Much for the Bailout [view article]
    Felix, You will need to focus on improving your contribution in the future. For heavens sake, you haven't told us anything here, we read all this daily. Give us something to sink our teeth into -- even if it's only into your blind enthusiasm, this is like a sloppy joe, messy, ill-conceived and full of indigestion. Reply
  • commenter
    Fitz919
    Oct 04 06:07 PM
    Inflate, Deflate or Default [view article]
    A Quick Comparison. The 3 page Bailout plan as written by Hank Paulson, in 2 weeks time became a VETO PROOF pork bill 451 pages long. The Derivatives market has also balloned to around 450 Trillion Dollars, compared to our National Debt which is around 10.5 Trillion Dollars. Both our Financial System, and our Congress are expert at running HOG wild. Reply
  • commenter
    DebtsNMesses
    Oct 04 05:56 PM
    Inflate, Deflate or Default [view article]
    Um. Didn't Russia have a credible military force in the 90's? Reply
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