ETF Profits Weekly

Can a Debt Crisis Be Solved with More Debt?

As evidenced by this past weekend’s elections, European voters are clearly opposed to austerity measures. In lieu of budget cuts, European nations may opt for bailouts via debt issued by the EU.

Ten New ETFs for the Investor's Toolbox

There were 10 new ETFs launched last week, with niches ranging from bond funds focused on narrow ranges of the credit spectrum to a commodity-oriented fund that counters contango. These latest products should enable investors to quickly and easily fine-tune their portfolio’s exposures.

Higher Incomes on Hold

Consumer doldrums are undermining an already sluggish US economy. In particular, consumers see income growth stagnating due to a weak labor market.

American-Made Energy

US oil production has risen to its highest level in more than a decade. With global energy supplies likely to remain tight, we highlight two ETFs that are solid plays on domestic energy exploration and production.

Transitory Pressures

Although we anticipated the market’s recent pullback and expect it to continue, most of the economic headwinds are likely transitory. While a defensive posture is warranted, there’s no need for investors to go to cash.

The Market Expects a Mandate

Although Obamacare remains controversial, prudent investors should put politics aside and determine how to profit from the law should it withstand the Supreme Court’s scrutiny. While opponents of the law were heartened by last week’s arguments before the Supreme Court, the market’s behavior suggests that it expects the law will ultimately receive the court’s affirmation.

Nuclear Power Prevails

Despite suffering a substantial backlash in the wake of Japan’s Fukushima disaster, nuclear power is still the most cost-effective way for emerging markets to meet energy demand. Indeed, the need for affordable energy will likely overcome anxiety about the possibility of a nuclear accident.

Don't Count China Out

China is in the process of shifting from an export-driven economy to a consumer-driven economy. So while Chinese policymakers may attempt to keep inflation in check, they still need their economy to generate considerable growth to engineer this transition.

The Era of Easy Earnings Beats Is Over

Business productivity has declined precipitously since the Great Recession. And as the easier comparable periods from the downturn fade into the past, falling productivity will make it far more difficult for companies to beat their earnings expectations. That means the upcoming earnings seasons could put a halt to the market’s rally.

An ETF Broadcasts PIMCO's Latest Move

Bond maven Bill Gross has finally entered the ETF arena. ETFs offer almost real-time transparency as compared to the quarterly lag of their mutual fund counterparts, so that means greater insight into the latest moves of one of the world’s savviest investors.