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Posts Tagged ‘bonds’

FEAR/GREED SENTIMENT INDEX – NOVEMBER 18, 2017

November 18th, 2017 Comments off


The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 44 which is in the “Fear” zone. This allows the market to go in either direction so it is neither a selling or a buying area.

But this indicator continues to move across its range from “Extreme Greed” readings around 90 just a few weeks ago. Recent buying opportunities have come when this indicator gets a reading of 25 or lower.

Today’s “Fear” reading is the first one is a long time and may be suggesting that an oversold/pessimistic bottom is coming in the next few weeks. That would present a chance to get back onboard the market for another ride up to new highs.

FEAR/GREED SENTIMENT INDEX – NOVEMBER 5, 2017

November 5th, 2017 Comments off


The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 66 which is in the “Greed” zone. This allows the market to go in either direction so it is neither a selling or a buying area.

One might think that the market’s continuing rally has to stop and correct at the very least. But it appears that there are still major portions of the general market that have stayed modest in their appreciation and present opportunities for price advances.

But since this indicator was in the “Extreme Greed” area for a long time, it may be working its way toward the “Extreme Fear” area and a buying opportunity a few weeks away from now.

MONEY MANAGEMENT UPDATE FEBRUARY 11, 2012

February 11th, 2012 Comments off

INCOME-ORIENTED ETF YIELDS FOR FEBRUARY 11, 2012: The current market is still reflecting an increasing tolerance towards risk. Money that has been in money market funds yielding zero and intermediate-term (7-10 year maturities) treasury bonds & notes yielding 2.5% are searching for higher rates of return. All that remains for these conservative investors and institutions is the all-clear signal that the return sufficiently compensates for the risk in lower quality bonds, high dividend paying equities, and high yielding preferred stocks.

The following list is comprised of ETFs that are geared towards income and income plus growth. They are ranked according to their present dividend yield with average daily volume exceeding 1 million shares for maximum liquidity and the most efficient executions.

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All of the funds that are mentioned above excluding XLU – Utilities Select Sector SPDR and TLT – Barclay’s 20+ Year Treasury Bond Fund have enjoyed spectacular price runs since last October – November. While their yields may appear attractive, their charts indicate that a correction is overdue in these issues. Bonds and preferred stock are like any asset class and are subject to periods of overvaluation, overbought conditions, and too much optimism from the public. There will be a better time in the future to take positions in these high-yield investments.

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“Some investors live or die by earnings reports. Earnings are important, but who knows if the reported earnings are accurate? A clever accountant can make earnings appear good or not so good, depending on the season or objective. There can be no subterfuge about a cash dividend. It is either paid or it is not paid. If it is paid, the shareholder knows that the company is making money. If it is not paid, no rhetoric can disguise the circumstances.”

Geraldine Weiss and Gregory Weiss ~ Authors of The Dividend Connection (1995)

MONEY MANAGEMENT UPDATE – JANUARY 27, 2012

January 28th, 2012 Comments off

INCOME-ORIENTED ETF YIELDS FOR JANUARY 27, 2012: The current market is reflecting an increasing tolerance towards risk. Money that has been in money market funds yielding zero and intermediate-term (7-10 year maturities) treasury bonds yielding 2.5% are searching for higher rates of return. All that remains for these conservative investors and institutions is the all-clear signal that the return sufficiently compensates for the risk in lower quality bonds, high dividend paying equities, and high yielding preferred stocks.

The following list is comprised of ETFs that are geared towards income and income plus growth. They are ranked according to their present dividend yield:

  • 7.73%     JNK – SPDR Lehman High Yield Bond (Average volume=4,590,090)
  • 7.69%     HYG – iShares High Corporate Bonds (Average volume=2,319,270)
  • 7.62%     PGF – PowerShares Financial Preferred (Average volume=357,127)
  • 6.99%     PFF – S&P U.S. Preferred Stock Index (Average volume=1,277,100)
  • 6.78%     PGX – PowerShares Preferred Portfolio (Average volume=467,321)
  • 5.42%     CVY – Guggenheim Multi-Asset Income (Average volume=239,577)
  • 3.94%     XLU – Utilities Select Sector SPDR (Average volume=7,383,240)
  • 3.70%     PEY – PowerShares High Yield Dividend (Average volume=518,074)
  • 3.44%     DVY – iShares DJ Select Dividend Index (Average volume=1,849,590)
  • 3.30%     TLT – Barclays 20+ Year Treasury Bond Fund (Average volume=8,469,930)
  • 3.23%     SDY – SPDR S&P Dividend Index (Average volume=1,278,950)
  • 2.94%     VYM – Vanguard High Dividend Yield (Average volume=541,831)
  • 2.56%     IEF – Barclays 7-10 Year Treasury Bond Fund (Average volume=946,802)
  • 2.44%     DIA – SPDR Dow Jones Industrial Average (Average volume=7,470,160)
  • 2.14%     VIG – Vanguard Dividend Appreciation (Average volume=1,342,150)
  • 2.05%     SPY – SPDR S&P 500 (Average volume=191,876,000)

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“Approximately 75% of the companies traded on the New York Stock Exchange pay cash dividends to their shareholders. It is perhaps the most sacred of all corporate financial components and the measure of value we hold in the highest regard.”

Geraldine Weiss and Gregory Weiss ~ Authors of The Dividend Connection (1995)