Friday’s nonfarm payrolls promises (threatens?) to be a critical update on the labor market. Basically the question is, If not now, when?
Monthly Archives: February 2010
THE CHALLENGE OF CHOICE
Yesterday’s Wall Street Journal warned that a “a treacherous landscape of potential trading problems” harasses the world of ETFs. Most of these problems are associated with liquidity. Some have it, some don’t. Identifying the haves, and the have-nots, is prudent way to start looking at ETFs. But the task is daunting, at least in the beginning of your search, because of the sheer number of products to review.
Sifting through the potential list of choices takes more time with each passing month. There are more than 900 ETFs, according to Morningstar Principia, and the list keeps growing. That’s good news–lots of choices. It’s also bad news because you have to sort through the list in search of investor friendly products. There are also hundreds of index mutual funds to consider, if you’re so inclined. Most of these choices aren’t worth your time for reasons including high expense ratios, insufficient liquidity, high tracking error and poor overall design, to name a few.
TIDBITS FROM THE WORLD ECONOMIC FORUM
Did you attend Davos this year? No? Neither did I. Next year, perhaps. Then again, maybe we’re not missing all that much by staying home. Why suffer airports and rubber chicken lunches in the digital age? Well, it’s true you can’t have a quiet chat with Mr. X over a scotch and soda via the web with the Swiss Alps in the background. On the other hand, everyone can afford the out-of-pocket expense for taking a peek as a long distance web voyeur.
A FORK IN THE ROAD…
The December update on personal income and spending isn’t terribly informative. Disposable personal income rose 0.4% in December, modestly above the monthly average rise during 2009 (0.3%). Meanwhile, personal consumption expenditures increased 0.2% in December, or slightly below average based on the monthly average for last year (0.3%). It all rounds out to a yawn in terms of what one month’s numbers tell us. Par for the course.
THE AGE OF NUANCE
January was a rough month for risky assets. For the first time since the financial crisis raged in late-2008, the red ink that spilled was broad and deep across the broad asset classes on a calendar-month basis. Bonds generally held their own in January, but stocks, REITs and commodities suffered sizable retreats.