Posts filed under “ETFs”

Gold Miners Are No Longer a Proxy for the Metal

Let’s say this right up front: The SPDR Gold Shares Trust exchange-traded fund has killed the shares of the gold miners.

For a few years now, I have been very skeptical about gold’s value as an investment (this may seem excessive, but see thisthisthisthis,thisthisthisthisthisthis and of course this).

The primary reason for this is straightforward: Gold is bought and sold based on a narrative that has turned out to be patently untrue. As we move further away from the great credit crisis of 2008-09, the global financial system has stabilized, undercutting the appeal of gold as a hedge against catastrophe. The U.S. economy is improving, as are those of many other countries. The wild inflation and collapse of the U.S. dollar that was going to lead to the demise of civilization and make gold an essential for investors? None of that has happened. Instead the world has low inflation or even deflation and the dollar, the world’s reserve currency, has risen to multiyear highs.

Unlike the metal, which is formed in the supernovae of second generation stars, the rationale for gold ownership isn’t eternal. It ebbs and flows along with a variety of inputs, including the strength of the dollar, inflation and, of course, mass psychology.

Last week, rather than discuss the metal, I asked the question “Are Shares of Gold Miners a ‘Buy’?” But today’s missive is about something more nuanced than gold — I want to address the question of the divergence between gold and the gold miners. It is a intriguing issue.

 

 

continues here Good Luck Bargain Hunting for Gold Miners

Category: ETFs, Gold & Precious Metals, Investing, Really, really bad calls

A Secret Wall Street Brainwashing Machine is Wholly Unnecessary

Every now and again, I disagree with an article written by someone I like and respect. On occasion, an author will crank out a column that makes me angry. And on rare occasions, I will read something where I disagree with just about every sentence. Today is one of those total disagreement days. Marketwatch columnist Paul Farrell…Read More

Category: Asset Allocation, Cognitive Foibles, ETFs, Investing, Psychology, Really, really bad calls

A Brief History of Financial Engineering

Killer slice of history from Bloomberg Business:   click for utterly ginormous infographic Source: Bloomberg Business

Category: Derivatives, Digital Media, ETFs, Gold & Precious Metals, Quantitative

John Bogle’s Investing Genius Needs An Update

Now before I commit blasphemy, a few words: I am as close to being a Boglehead as you will find, without actually being one. The bulk of my portfolio is in passive indexes. Most of the assets I manage are in a broad allocation model. This is a tribute to the wisdom and teachings of investing…Read More

Category: Apprenticed Investor, Asset Allocation, ETFs, Investing

What is an Online Financial Advisor?

I thought this infographic was inforamtive. We launched our own online advisor last year called Liftoff:   Source: Paladin Research & Registry

Category: Asset Allocation, Digital Media, ETFs, Investing, Technology

Why Gold & Oil Are Trading So Differently

Category: Commodities, Energy, ETFs, Gold & Precious Metals, Media, Technical Analysis, Trading, Video

Folklore of Finance

I really enjoyed this report by State Street, which discusses how often Folklore dominates financial decision-making. Well worth the free download:     click for full PDF of research report Source: State Street Source: State Street

Category: ETFs, Investing, Psychology

U.S.-listed ETP Flows

Source: Fidelity

Category: ETFs, Markets

John Bogle on the Rise of Index Funds

The founder of Vanguard explains why his invention is winning the battle for assets. Plus: The problem with ETFs, and why we need a transaction tax.

Category: ETFs, Index/ETFs, Investing, Video

Jack Bogle on Diversified Portfolios vs Speculation


9/9/2011 9:25AM

Buying and holding stocks and bonds for the long term and maintaining a diversified portfolio are still the smartest strategies for the average investor, says Vanguard founder Jack Bogle in answer to Mark Cuban and other critics of these traditional approaches. In the Big Interview with Journal columnist Jason Zweig, Bogle takes aim at the culture of market speculation. Betting on long odds, he says, “doesn’t pay off very often.”

Category: ETFs, Investing, Video