Posts filed under “Index/ETFs”
Nearly every sector of the financial world is mid-way through a painful unwinding of all things leverage. That’s right, I said nearly every sector. Triple-levered ETF funds have just launched and my guest blogger and investor Paul Kedrosky calls them ticking time bombs waiting to explode.
Why the market likes them, and Kedrosky hates them in the clip.
When Exchange Funds Go Bad
Yahoo Tech Ticker Nov 05, 2008 02:00pm
No wonder Wired wrote:
That said, your blog will still draw the Net’s lowest form of life: The insult commenter. Pour your heart out in a post, and some anonymous troll named r0rschach or foohack is sure to scribble beneath it, “Lame. Why don’t you just suck McCain’s ass.” That’s why Calacanis has retreated to a private mailing list. He can talk to his fans directly, without having to suffer idiotic retorts from anonymous Jason-haters.
The editors at DJ have made a few changes to the venerable index: Out are Honeywell (HON) — which I have owned since the GE deal fell apart, and Altria (MO) which I sill have a small position in from the late litigation era.
In are Chevron (CVX) and Bank of America (BAC), which I don’t. The charts of the buy and sell signals below are rather interesting.
The adds of Intel (INTC) and Microsoft (MSFT) late in 1999 top ticked the tech boom. Will the Chevron add do the same for energy?
Here’s the WSJ:
"Dow Jones & Co. announced that Bank of America Corp. and Chevron Corp. will replace Altria Group Inc. and Honeywell International Inc. in its benchmark Dow Jones Industrial Average effective Feb. 19.
The change is the first in four years and reflects the index’s continued shift away from industrial firms and into other sectors such as energy and financial services.
Excluding thinly traded Berkshire Hathaway Inc., Bank of America and Chevron are the two biggest U.S. companies by market capitalization which currently aren’t in the Dow industrials."
Interestingly, I noticed our ratings on both drops were "Neutrals"; the adds were split: BAC was a buy, CVX was a sell . . . charts after the jump.