Fri, Jul. 24, 3:01 PM
- Just a 1% decline in the major averages (which are being helped by some high-profile earnings moves) is masking far greater carnage in a number of other sectors, notably healthcare (XLV -2.5%) and energy (XLE -2%).
- Business development companies and mortgage REITs are being socked again as well, suggesting the worry may go beyond interest rates and to credit in general, especially as commodity prices continue to tumble - to pick one, crude oil at $48.06 per barrel is at its lowest price in about four months.
- Among BDCs: Hercules Technology Growth (HTGC -4.2%), Triangle Capital (TCAP -3.3%), PennantPark Investment (PNNT -5.4%), Prospect Capital (PSEC -1.4%), Main Street Capital (MAIN -2.8%), TICC Capital (TICC -2.4%), KCAP Financial (KCAP -2.6%), THL Credit (TCRD -2.7%), FS Investment (FSIC -1.8%).
- Among mREITs: Armour Residential (ARR -3.1%), Two Harbors (TWO -0.9%), CYS Investments (CYS -2%), Invesco Mortgage (IVR -1.5%), Capstead Mortgage (CMO -1.2%), Apollo Residential (AMTG -2.6%), Arlington Asset (AI -3.7%), American Capital Mortgage (MTGE -0.9%), Orchid Island (ORC -5.8%).
- MReit ETFs: MORL, REM, MORT, LMBS
- BDC ETFs: BDCL, BDCS, BIZD, FGB
Wed, Jul. 8, 3:46 PM
- Notable about today's market selloff - the Dow, Nasdaq, and S&P 500 are lower in the area of 1.5%. - is its spread to the usual ports in a storm. The utilities (XLU -0.6%) and REITs (IYR -0.6%) are outperforming, but still lower even as interest rates slide lower.
- Any green at all is very difficult to find in a check of the heat map for the S&P 500.
- Defensive sectors like consumer staples (XLP -1%) and health care (XLV -1.5%) aren't being spared either.
Thu, Jun. 25, 10:26 AM
Fri, Jun. 19, 2:11 PM
Wed, Apr. 22, 1:20 PM
- "We have consumer staples (NYSEARCA:XLP) and healthcare stocks (NYSEARCA:XLV) trading on average at 20 times earnings and five times book value - while these stocks aren’t often thought of as value, they actually comprise 20% of the Russell 1000 Value (NYSEARCA:IWB) index," says Richard Pzena on the company (NYSE:PZN) earnings call (transcript).
- Add REITs and utilities to the mix, he continues, and it's pretty hard to call that value index "value" anymore.
- "The natural question: Is it different this time? Does this era of low interest rates presage something permanently different ... We believe that the odds of such an outcome are low."
- Though, not getting into in the subject during the earnings call, Pzena presumably remains bullish on the large-cap financial sector names (NYSEARCA:XLF) which continue to be weighed down on by ZIRP.
- Previously: Low-rate "torture" for the regional lenders (April 21)
Tue, Apr. 7, 7:14 AM
- The government surprisingly intends to increase Medicare Advantage payments by about 1.25% in 2016, reversing a proposal to make a cut of 0.9%.
- The move should benefit insurers such as UnitedHealth (NYSE:UNH) and Humana (NYSE:HUM).
- The change is mainly connected to tweaks in estimates of how fast Medicare spending has been rising rather than to changes in policy.
- Other health insurers include: AET, HNT, MO
- ETFs: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS
Thu, Apr. 2, 7:35 AM
- Expecting the S&P 500 (NYSEARCA:SPY) to gain only another 2% by year-end, and noting the index's pricey relative valuation, Goldman's David Kostin recommends investors instead by the Nasdaq 100 (NASDAQ:QQQ) - its expected earnings growth of 14% tops the S&P's 5%, but both indexes trade at similar P/Es.
- Breaking it down into sectors, Kostin recommends being Overweight information technology, energy (NYSEARCA:XLE), and telecom services (XTL, IYZ).
- Neutral: Health care (NYSEARCA:XLV), consumer discretionary (NYSEARCA:XLY), materials (NYSEARCA:XLB), and utilities (NYSEARCA:XLU).
- Underweight: Financials (NYSEARCA:XLF), consumer staples (NYSEARCA:XLP), and industrials (NYSEARCA:XLI).
Fri, Mar. 20, 2:21 PM
Thu, Mar. 5, 2:08 PM
- The financial sector (NYSEARCA:IYF) is far and away the leader in U.S. sector ETF outflows year-to-date, with $4.89B exiting, according to XTF.com. Not surprising, as the sector's been one of the poorer performers even after a nice rebound in February.
- The behavior contrasts with what's happening in energy (NYSEARCA:XLE), where bottom fishers have helped those ETFs see inflows of $2.97B - more than any other tracked sector in 2015.
- Also notable for outflows are industrials (NYSEARCA:XLI) and tech (NYSEARCA:IYW) - this despite market-beating returns so far this year.
- The other sector seeing sizable inflows is health care, with a net $2.74B coming in amid the strongest returns of all the major industries.
- ETFs: XLF, FAS, XLE, IYH, FAZ, XLK, XLV, VHT, XLI, ERX, VDE, OIH, VGT, UYG, ERY, DIG, CURE, VFH, TECL, DUG, IYE, IYW, FXH, VIS, RXL, ROM, IYF, FHLC, FTEC, TECS, FENY, SEF, PXJ, IYG, RYT, IYJ, FIDU, FXO, RYH, QTEC, IGM, FNCL, FXR, FXL, RYE, UXI, FXN, FINU, MTK, REW, RWW, RYF, RGI, DDG, SIJ, RXD, AIRR, FINZ
Fri, Feb. 20, 4:16 PM
Fri, Jan. 30, 2:59 PM
- The broad averages are moderately in the red, and would be even more so if it wasn't for energy (XLE +1%), solidly higher as oil flies upward by nearly 8% into the close.
- ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, FENY, PXJ, RYE, FXN, DDG
- What's doing worse than energy this year? That would be financials, and the XLF is lower by another 0.95% in today's session. Also faring poorly are utilities (XLU -1.3%), health care (XLV -0.8%), and consumer staples (XLP -1.2%).
Dec. 19, 2014, 2:18 PM
Dec. 15, 2014, 11:35 AM
- While publicly traded stocks at 35% remain the most popular investment, that's down from 43% one year ago and 49% in 2012. ETFs at 25% are up from 21% one year ago.
- The most popular equity sectors are financials (NYSEARCA:XLF) at 27%, followed by Consumer Discretionary (NYSEARCA:XLY), and Energy (NYSEARCA:XLE), both at 16%.
- Apple (NASDAQ:AAPL) and Berkshire Hathaway (BRK.A, BRK.B) again hold the two top spots for individual picks, with the S&P 500 SPDR ETF (NYSEARCA:SPY), the Health Care SPDR (NYSEARCA:XLV), and the MSCI Emerging Markets ETF (NYSEARCA:EEM) rounding out the top five.
- Source: Tiger 21 Member Favorites Survey
Nov. 25, 2014, 2:46 PM
- "Not surprisingly, billionaires reduced their energy allocations (NYSEARCA:XLE) during Q3," says Direxion, unveiling the quarterly rebalance for the iBillionaire Index (which serves as the benchmark for the IBLN ETF). Attention was instead shifted to healthcare (NYSEARCA:XLV) and materials (NYSEARCA:XLB), with companies like Humana (NYSE:HUM) and Monsanto (NYSE:MON).
- Also added to the index: TMO, GM, FB, CBS, GOOG, MAS, APD, DAL, NOV, WHR, THC, ABBV.
- Dropped from the index: AIG, MCK, CTSH, MSI, RIG, CI, APC, GPS, MSFT, CMCSA, NFLX, MHFI, WMB, ICE.
- Outlying sectors: Consumer Discretionary (NYSEARCA:XLY) makes up 23.33% of the iBillionaire Index vs. 11.68% for the S&P 500, and Industrials (NYSEARCA:XLI) and financials (NYSEARCA:XLF) make up just 6.67% each of the index vs. 10.44 and 16.30 of the S&P 500, respectively. Consumer Staples (NYSEARCA:XLP) have zero representation in the index vs. 9.7% in the S&P 500.
- Previously: Direxion launched an ETF with iBillionaire today
Oct. 24, 2014, 4:14 PM
Oct. 17, 2014, 4:20 PM
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