Fading China

Weak manufacturing data continues to be a drag on the performance of China equities. The FTSE-Xinhua China 25 Index Fund (FXI) is up only 6% in the past 12 months while the S&P 500 is up 28% over the same time period.

September 21, 2012

Sinking Spain

The outlook for equities in Spain has gradually deteriorated over the past year and recent developments have continued the trend. The MSCI Spain Index Fund (EWP) is down over 45% over the past year while the S&P 500 has been flat over the same time period.

June 4, 2012
XLF May 2012

Financials Give Back

After outperforming other sectors since the beginning of the year, financials have given up most of the gains and are now even with the broader market. State Street’s Financial Select Sector SPDR Fund (XLF) was up 20% as late as the beginning of April before beginning a 6-week slide. XLF is now up only 3% year-to-date compared to a 2% gain for the broader market.

May 21, 2012

Home Builders Remain Constructive

Housing related stocks have outpaced the broader market in 2012 as the new home market continues to recover. The SPDR S&P Homebuilders ETF (XHB) is up 24% year-to-date compared to a 7% gain for the broader market.

May 14, 2012

Trading France

According to the WSJ, the euro, European stocks, bank shares and “peripheral” euro-zone sovereign bonds all suffered as funds moved into the safety of the dollar and assets like German bunds following the weekend elections in France.

May 7, 2012

Low Energy

Energy stocks have underperformed the broader market in 2012 and the trend doesn’t appear to be changing anytime soon. The Energy Select Sector ETF (XLE) is flat year-to-date in 2012 compared to an 11% gain for the broader market.

April 28, 2012

Is Gold Signaling a Top in Stocks?

While Friday’s price action may not mark a top, nearly every indicator that I follow is screaming that stocks are overbought across all time frames. Pair that with the Greece uncertainty and LTRO considerations and suddenly the Dollar starts to look a bit more attractive.

February 6, 2012

Will Weak Earnings Hold Back Stocks?

The financial complex is absolutely critical when looking at broad index returns. It is common knowledge that broad indexes such as the S&P 500 and the Dow Jones Industrial Average struggle to rally when the financial complex lags. The same can be said for the semiconductor sector as well.

January 17, 2012

Industrials Forge Ahead

After a long decline last summer, industrial stocks have turned around and are now outpacing the broader market. The Vanguard Industrials ETF (VIS) is up 13% since September 1, 2011. That compares to an 8% rise for the broader equity market over the same time period.

January 17, 2012