Market News

Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares China Large-Cap ETF (FXI), where 3,300,000 units were destroyed, or a 2.3% decrease week over week.

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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which added 10,850,000 units, or a 20.5% increase week over week. Among the largest underlying components of XOP, in morning trading today Continental Resources (CLR) is up about 6.4%, and Devon Energy Corporation (DVN) is higher by about 5.5%.

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Gold tends to do well when other assets do badly, but it does best when people lose faith in central banks, and central bankers have done all they can to unnerve investors so far this year. Fed downgrades, Eurozone QE, and now Japan's move to negative interest rates together show monetary policy becoming ever-more desperate as it fails to work as advertised. Gold prices responded between January and March with the sharpest three-month gain in almost three decades.

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Companies in the S&P 500 are expected to report a 9.1% decline in quarterly profits.

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The stock market had it sharpest selloff last Thursday since February 23rd as the stronger Japanese Yen and sharply lower Treasury yields spooked investors. The dollar dropped 1.4% versus the Yen as it has reached its highest level since October 2014. The dollar decline has caught many by surprise though there were clear technical signals by February 6th that the dollar had topped out. Many who sold the Yen short have been squeezed though there is still a high short position.Despite the rebound Friday the major averages are still locked in their trading recent ranges. Many are wondering whether we are going to see a normal market correction after the recent 12% rally or will sector rotation will take its place.Some of the strongest sectors like the Dow Transports have already corrected 5.7% from the March 21st high but there needs to be more evidence before I can conclude it has completed its correction. Positive signals a week ago put the health care, biotech and energy ETFs on the Viper ETF buy list last Monday and they all had a good week.Much of the pessimism is tied to their expectations that we will have another weak earnings season. In last week's column "Should Investors Worry About Earnings Season?" I presented my view that the earnings season could be better than expected despite the widespread gloomy forecasts. I also pointed out that it was also not a reason for investors to avoid stocks.In this environment the comments by Donald Trump last week that “I think we’re sitting on an economic bubble, a financial bubble" has likely made investors even more fearful. In my view this was goal of his comments. Unfortunately fear does sell which is demonstrated by the continued success of his presidential campaign.

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The latest tabloid tale from China’s peer-to-peer (P2P) sector concerns Shanghai-based Deer Financial Group, with many related companies including Fast Deer (快鹿) Financial, Golden Deer (金鹿) Financial, Dangtian Wealth (当天财富), Shanghai Oriental Hongqiao (东虹桥), with online finance, financial guaranty and micro-lending platforms, and grassroots P2Ps with cute names like Funny Beans (趣豆) Financial and Vegetable Shoots (菜苗) Online.

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The S&P 500 is expected to post a year-on-year decline of 9.1% which will be the fourth consecutive quarter of year-over-year declines, which last happened in Q4:08 through Q3:09. The expected decline in earnings will be the largest expected decline since Q1:09, when the S&P earnings were expected to decline 26.9% from the same quarter in 2008.

Of course, the “geniuses” at our Federal Reserve want us to believe them when they say that our economy is booming and deserves a series of rate hikes when the rest of the world central bankers are lowering rates as fast as they can. However, that is for another article on another day.

At present, the forward 12 month P/E on the S&P 500 is 16.5 which is higher than the five and ten year averages thanks to the period between 2008 and 2012 when we were in the so-called Great Depression aka the global financial meltdown and the S&P was ravaged.

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Aier Eye Hospital Group, the eye care hospital chain led by China billionaire Chen Bang, will invest $30.3 million for a minority stake in Qihoo 360 Technology, Shenzhen-listed Aier said in a statement on Thursday.

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A couple of weeks ago, I discussed the value of investing in the S&P 500 Dividend Aristocrats, the 50 companies in the index that have hiked their dividends for at least 25 consecutive years.

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You can pay too much for college and get deep into debt. It doesn't have to be that way.

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