Peter Barnes
Disclosure: I am in full compliance with all ethics and other policies for Market Realist research analysts. I am not invested in securities that I cover on Market Realist.
More From Peter Barnes
Fintech Startups Grabbed a Larger Share of US Personal Loans
The total spending on Visa’s (V) network rose 11% to $2.1 trillion in the second quarter—slightly better than analysts’ estimates of $2.09 trillion.
BBJP: Second-Fastest ETF to Cross $1 Billion in Assets
BBJP was the star ETF last week. BBJP is the second-fastest ETF to reach the $1 billion mark after the SPDR Gold Trust (GLD).
Trading Revenues Boosted Banks’ Second-Quarter Earnings
The top five US banks’ trading revenues rose 10% in the second quarter to over $20 billion—compared to $18.55 billion in the same period last year.
Earnings Growth Drove Financials Last Week
Even though broader markets remained flat last week, US financials rose due to strong earnings growth from leading banks.
ETF Inflows Rose amid a Strong Rally in the Market
The rise in US stocks to more than a five-month high prompted investors to put money into ETFs. US-listed ETFs added $8.5 billion last week.
ETF Inflows Are Gravitating towards Fixed Income
According to FactSet data, US-listed ETFs had inflows worth $770 million last week. Now, the year-to-date inflows are $121 billion.
Highest ETF Outflows in Three Months
FactSet data showed that ETFs posted net outflows of $21.6 billion during the week, which pushed the year-to-date inflows down to $129.4 billion.
Banks Might Benefit from the Improving Loan-to-Deposit Ratio
The LDR ratio for the largest US banks—JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and U.S. Bancorp—rose in the first quarter.
Russell-Indexed Funds Boost US Equity ETFs’ Inflows
FactSet data showed that US-listed ETFs garnered inflows worth $7.5 billion during the week. Now, the year-to-date inflows are $142.5 billion.
US Banks Might Boost Payouts after Clearing the Stress Test
Big US banks (VFH) have cleared the Fed’s latest stress test. The test measures banks’ ability to withstand an economic crisis.
Why Did ETF Flows Pause Last Week?
After eight weeks of continuous inflows, ETF flows faltered last week despite positive momentum in the markets.
Top US Banks Lost Market Share in the Mortgage Industry
According to the Federal Reserve, consumer credit slowed to an annual growth rate of 2.9% or $9.3 billion in April—compared to 3.8% in March.
Jefferies: US Banks’ Exposure to Italy Is Manageable
According to Jefferies, JPMorgan Chase only had $6.7 billion of exposure to Italy at the end of 2017, while Bank of America had $5.4 billion.
ETF Inflows Gained Traction Last Week
According to FactSet, investors added $3.5 billion to US-listed ETFs last week. Now, the year-to-date inflows are $90.4 billion.
Big US Banks Continued to Report Robust Earnings
Morgan Stanley reported an EPS of $1.45 in 1Q18—compared to expectations of $1.25. Morgan Stanley’s revenue was $11.1 billion.
ETF Inflows Rebounded despite Rising Geopolitical Concerns
The latest economic data and renewed geopolitical concerns failed to thwart ETF inflows last week.
US Equity ETFs Continued to See Sharp Outflows
The uncertainty created by the US-China trade war continues to impact ETF inflows. Investors withdrew $3 billion out of US-listed ETFs last week.
US Investment Banks Earned Record Fees in 2017
The five largest US investment banks garnered more than $15.2 billion in fees from debt capital market activities in 2017.
Bank of America Fined for Fraudulent ‘Masking’ Scheme
The New York Attorney General fined Bank of America due to a fraudulent “masking” scheme in the bank’s electronic trading division.
Could an Interest Rate Hike Boost Financials This Week?
US stocks ended lower last week amid political uncertainty. Strong industrial production data didn’t boost the markets.
SPY Witnessed Huge Outflows
The SPDR S&P 500 ETF Trust (SPY) was responsible for all of the outflows from US equity. SPY experienced net redemptions of $12.7 billion.
US Financials Rallied, Indexes Extended Gains
US stock markets rallied last week after February’s jobs report was better than expected. Non-farm payrolls rose by 313,000 in February.
Gold ETF Is Making a Comeback
The VanEck Vectors Gold Miners ETF (GDX) raked in $610.1 million. SMH also saw substantial inflows of $552.8 million.
Why Investors Should Monitor Geopolitical Risks
Localized geopolitical risks like the tension in the Middle East are unlikely to cause substantial damage to the markets in the long run, though they could bolster oil prices in the short term.
North Korea Could Be a Major Political Risk
While North Korea and South Korea (EWY) have initiated talks recently, North Korea’s nuclear ambitions mean that tensions will always remain in the region despite temporary overtures of peace from both sides.
Can Trade War Spook Stock Markets in 2018?
The biggest political risk to markets could arise from a trade war that has been playing out ever since Donald Trump came to power.
Huge Dip in ETF Flows for the Week
After registering the strongest inflows in January, ETFs witnessed huge outflows last week. The YTD inflows have fallen to $51.9 billion.
Why Investors Need Not Remain Complacent
The International Monetary Fund expects the US economy to grow 2.7% in 2018 and 2.5% in 2019. The global economy is expected to expand 3.9% in both 2018 and 2019.
How Monetary Tightening Could Affect the Stock Markets
The ultra-loose monetary policies that have been in vogue for many years have helped jack up prices of all the asset classes.
SPY’s Assets Crossed $300 Billion
SPY, the world’s largest ETF, continued to receive huge inflows. After adding $7.8 billion the previous week, it added another $6.2 billion last week.
Strong Earnings Propel Stocks into Unchartered Waters
Last week, US stocks closed the week on a very strong note mainly driven by strong earnings growth. All 11 sectors in SPY reported positive earnings growth.
SPY Was the Big Winner Last Week
SPY continued to be the big winner of the week with inflows of $7.8 billion. SPY’s total assets under management have reached $292 billion.
ETFs Start 2018 on a Very Strong Note
ETFs started 2018 on a very promising note. According to FactSet, the total ETF inflows amounted to $5.32 billion for the first week of the year.
ETF Inflows Hit Record Highs in 2017
With the addition of $475 billion, ETF inflows have broken all of the records in 2017. The previous record was $287.5 billion in 2016.
Can Verizon’s Current Transformation Boost Its Stock in 2018?
Over the past two years, Verizon has boosted its presence in online advertising, streaming videos, and adjacent wireless markets by acquiring a number of companies.
Is IBM Ready to Take Off?
International Business Machines (IBM), a leading enterprise solutions provider, has seen its revenue decline consistently for the past 22 quarters.
2017 Dogs of the Dow Were Winners in 2016
The Dow has risen 88.5% since December 2012. Except for Merck (MRK) and Verizon (VZ), the laggards delivered negative returns during that period.
SPY Was the Biggest Winner Last Week
Last week, the SPDR S&P 500 ETF Trust (SPY) was the biggest winner with inflows worth $4.63 billion.
US Financials: More Gains in the Coming Weeks?
US financial stocks hold a lot of promise going into 2018 due to strong economic growth and the expected rise in interest rates.
Smart Beta ETFs Were the Real Stars Last Week
Last week, the real stars were smart beta ETFs that saw strong inflows after many weeks. MTUM and USMV added $847.5 million and $829 million.
Investors Up Exposure in US Equities amid Rising Markets
According to Lipper data, US-based stock ETFs (exchange-traded funds) saw inflows worth $9.4 billion last week even as the markets (SPY) continued to see record highs.
ETF Inflows Are near $400 Billion
ETFs saw another week of record inflows even though the markets fell slightly for the second consecutive week. ETFs added $5.4 billion last week.
US Banks’ Divergent Approaches to Securities Trading
Over the years, the largest US banks (XLF) have followed different approaches to their equity and FICC (fixed income, currencies and commodities) trading.
ETF Inflows Moderated Last Week
According to FactSet, $3.7 billion worth of inflows were added in the ETF last week, which takes the year-to-date total to $388.2 billion.
Equities Garnered a Huge Chunk of the Total ETF Inflows
FactSet data show that $16.2 billion worth of inflows were added in the ETF last week, which takes the YTD (year-to-date) total to $384.3 billion.
ETF Inflows Set a New Annual Record
As the broader stock indexes continued to make new highs, ETFs also continued to witness record inflows.
US Stocks Bolstered by Financials amid Tax Cut Hopes
US stocks are rising due to hopes that the Trump Administration will complete a tax deal in the near future that will substantially benefit corporates.
What Just Happened to Investment Bank Rankings?
During a press conference last week, Federal Reserve Chair Janet Yellen criticized Wells Fargo (WFC) for its fake account scam.
Are Rising Credit Card Delinquencies a Concern?
Several large US banks and credit card companies reported a rise in credit card delinquency rates for August—the second rise after falling for four months.
Taking On Exposure to Innovative Biotechnology Stocks
The iShares NASDAQ Biotechnology ETF (IBB) offers investors targeted exposure to biotechnology and pharmaceutical stocks listed on the NASDAQ.
Benefitting from IBB’s Lower Expense Ratio
The iShares NASDAQ Biotechnology ETF (IBB) is an open-end fund with assets under management of $9.85 billion.
The IBB Biotechnology ETF: The Drugs You Need?
The iShares NASDAQ Biotechnology ETF (IBB) aims to track the investment results of the NASDAQ Biotechnology Index, which comprises NASDAQ-listed biotechnology and pharmaceuticals companies.
Gold and Treasury ETFs Were Bright Last Week
The SPDR Gold Trust (GLD) added $873 million—gold prices rose to the highest level in a year. The largest outflow was witnessed in SPY.
SMH Constituents Are Fast-Growing Companies
The VanEck Vectors Semiconductor ETF (SMH) offers investors concentrated exposure to the global semiconductor industry.
Why SMH Has One of the Lowest Expense Ratios
The VanEck Vectors Semiconductor ETF (SMH) is an open-ended fund with assets under management of $774.0 million.
A Peek at the VanEck Vectors Semiconductor ETF
The VanEck Vectors Semiconductor ETF (SMH) is an ETF that aims to replicate the price and yield performance (before fund fees and expenses) of the MVIS US Listed Semiconductor 25 Index.
Behind HACK’s Investment Strategy
HACK follows a replication strategy, which is an indexing strategy that involves investing in securities in the same proportions as the index.
HACK: The World’s First Cybersecurity ETF
The ETFMG Prime Cyber Security ETF (HACK) is an ETF (exchange-traded fund) that tracks the price and yield performance of the Prime Cyber Defense Index.
Largest US Banks Lost Mortgage Market Share
In 2Q17, the five largest US banks originated residential mortgages worth $112.0 billion, which was higher than $96.0 billion in 1Q17 but well below $129.0 billion in 2Q16.
Smartphones Are Changing Emerging Markets’ Business Landscape
As the middle class expands and discretionary incomes rise, emerging markets are feeling more strongly the impact of the web and mobile technologies.
Emerging Market Economic Growth Outpaced Developed Markets
In recent years, emerging markets have experienced rapid economic growth compared to developed markets.
Rethink Your Emerging Market Story
In the previous articles of this series, we discussed population and economic growth as the two major drivers leading to a rise in emerging markets (EMQQ).
Why Emerging Markets Have Better Demographics
Achieving higher returns amid the rising market volatility, record-low interest rates, and global uncertainties is a huge challenge for investors.
Nasdaq Commodity Index: Reflecting the Global Commodity Market
On the commodities side, we have broad-based commodity benchmark, the Nasdaq Commodity Index, aptly named.
Dorsey Wright Indices: Taking Advantage of Technical Aspects
With the Dorsey Wright indices, we mentioned the Dividend Achievers (VIG) (DVY) and now this is more of a fundamental factor based suite of products.
The AlphaDEX® Methodology: The Quintessential Smart Beta Product
So let’s move on to the AlphaDEX suite of products. Walk us through the construction of these products.
Shareholder Buyback: A Powerful Tool to Achieve Higher Income
What products single out specifically the share buyback companies?
How Dividend Achievers Generate High-Quality Income Growth
Let’s dive a little bit into the Alphadex® and Dividend Achievers products.
Buyback Achievers Strategy Significantly Outperforms Benchmark
Historically, we have seen Buyback does perform very well across all interest rate environments. Looking at the data back to the mid-80s, it does well.
How Do You Define ‘Smart Beta’?
What is your definition of smart beta? I think there is some variation in this definition depending on who you ask.
E-Commerce in Emerging Markets: The Great Confluence
As the middle class expands and discretionary incomes rise, the impact of the web and mobile technologies are felt more strongly in emerging markets.
Young People, Middle Class Contributing to E-Commerce Growth
Emerging market economies (EEM) have followed diverse trends that are likely to drive global growth in the coming decades.
Why Term Life Is Most Beneficial to Young Adults
Term life (IYF) is most beneficial to young adults who are relatively free from any financial responsibilities.
How to Pick a Life Insurance Policy
Term life insurance provides guaranteed benefits to beneficiaries for a specific period of time in case of the sudden death of the insured person.
What Are the Different Types of Life Insurance Policies?
Life insurance (PRU) (MET) policies come in various forms that cater to people in different age groups and with different financial goals.
Warren Buffett in Favor of Renewable Energy Sources
Warren Buffett points to a likely conflict between traditional electric power (JXI) suppliers and renewable energy sources like solar and wind.
How Buffett Defended Berkshire’s Partnership with 3G Capital
Berkshire Hathaway teamed up with 3G Capital, a Brazil-based investment firm, to buy H.J. Heinz in 2013 and Kraft Foods in 2015. This action formed a new merged entity, Kraft Heinz Company.
Why Warren Buffett Strongly Believes in the American Dream
Buffett said that it has been a terrible mistake to bet against America, not only for the past 240 years but even now. He believes that America’s emphasis on innovation and strength in commerce will continue to provide strong gains for its people.
Why Buffett Thinks Risk Management Should Be a Disciplined Affair
Berkshire Hathaway has reported an underwriting profit for 13 straight years, showing a pre-tax gain of $26.2 billion for the period. Buffett states that this was due to Berkshire’s insurance manager’s daily focus on disciplined risk evaluation.
How Berkshire’s Low-Cost Business Model Creates an Enduring Moat
Warren Buffett’s 2015 letter to Berkshire Hathaway shareholders is a mix of data, insight, and humor. Buffett aimed to dispel many allegations and misconceptions that have been lingering for quite some time.
General Growth Properties: Less Borrowing Bodes Well
To lower its effective borrowing costs and extend its maturity profile, GGP was active in unsecured and secured credit markets in fiscal 2015.
General Growth Properties’ Revenue Fell in 4Q15
Minimum rent contributed to 60.1% of General Growth Properties’ total revenue in 4Q15.
Equity Residential’s Management Paints a Bullish Picture for 2016
Equity Residential upwardly revised its guidance for its 2016 same-store operating performance, normalized FFO per share, and some of its transactions.
EQR Sees a Marginal Fall in Borrowing Costs in 4Q15
In 2015, EQR was active in both the unsecured and secured credit markets to lower its effective borrowing costs and extend its maturity profile.
The US Is Making Efforts to Simplify Mortgage Disclosures
The CFPB’s mortgage disclosure form initiative has been created mainly to help consumers understand and select the best mortgages for them.
A Look at the Role of the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau was established to protect consumers’ interests by implementing federal consumer financial laws.
Simon’s Valuation Is Unlikely to Expand Further
Among the 25 analysts following Simon Property stock, 20 have assigned a “buy” rating. The company received no “sell” ratings from any analysts while five brokerages have assigned a “hold” rating.
Simon’s 4Q15 Earnings: Borrowing Cost Should Remain at Same Level
The total debt of Simon Property Group (SPG) increased from $20.8 billion as of the end of 4Q14 to $22.5 billion as of the end of 4Q15.
SPG’s 4Q15 Operating Metrics: Occupancy under Pressure
Simon Property Group (SPG) had 179 properties under US malls and premium outlets as of the end of 4Q15 compared to 177 as of the end of 4Q14.
How Much Money Are You Spending on Rent?
Rent is rising fast while pay raises have been very modest, which is a very difficult situation for median-income households.
Why Rent Is Going through the Roof
As more and more people seek apartments, rent has also been rising rapidly. In fact, rent has been rising faster than the overall cost of living in the US.
Properties for Sale: What Are They Like?
The National Association of Realtors’ data showed that, on average, properties stayed on the market for 58 days before they were sold to buyers.
Median Existing Home Prices Are Rising Higher and Higher
With a rise of 7.6% YoY (year-over-year) to $224,000, December 2015 was the 46th consecutive month of YoY increases in median home prices.
Existing Home Sales: Northeast and Midwest Led the Charge
All four major regions of the country witnessed substantial increases in home sales in December 2015. The charge was led by the Northeast and Midwest.
How Zoning Can Be a Hindrance to Housing Market Growth
Zoning restricts the freedom of property holders and REITs to use land however they want, given their specific development and investment interests.
How Zoning Regulations Benefit Communities
Zoning protects existing property values by preventing incompatible uses of a property. It also protects residential properties from commercial development.
How Zoning Regulations Impact City Development
Zoning is the way that governments supervise land development and the kinds of uses each individual property may be directed toward for the public interest.
AvalonBay Communities’ Stock Outperformed Its Peers in 2015
AvalonBay Communities is the second-largest residential REIT company in the US with a market cap of $24.6 billion. Among the 26 analysts following AvalonBay’s stock, 16 have assigned a “buy” rating. AvalonBay received only one sell rating and nine “hold” ratings.
What Can the Government Do to Increase Housing Affordability?
Many local governments have initiated measures to increase housing affordability. The California Community Redevelopment Law requires developers of redevelopment projects to construct 15% of the houses to be affordable for low- and moderate-income households.
What Are the Factors Driving Housing Affordability?
Housing affordability took a beating in July 2015 after reaching its high in January 2013. The higher ratio of the home affordability index signifies relatively higher home affordability to buyers.