Monday, July 21, 2014

Risky Business Monitor: July 21, 2014

Ralph Waldo Emerson’s cogent observation that “[a] foolish consistency is the hobgoblin of little minds” notwithstanding, I note that if I have said it once, then I have said it a zillion times: I hate redundancy. Nonetheless, I acknowledge my most recent J.J.’s Risky Business blog post bears more than a passing resemblance to my most recent J.J. McGrath’s Instablog post at Seeking Alpha, as reflected by the following recapitulated ruminations:

The Select Sector SPDRs carving the S&P 500 into nine slices may be unique in the exchange-traded fund universe: They serve not only as investing and trading vehicles but also as equity-market indicators, lagging, coincident and leading. Accordingly, I keep an eye (or two) on them at all times.

A few results of this many-faceted observation process can be found in a recent series of articles published at Seeking Alpha. In each of the nine pieces, I focus on a single sector SPDR: its behavior in the first half of this year relative to its parent’s proxy, the SPDR S&P 500 ETF (SPY), and all its siblings; its average monthly performances during the first full 15 years of its existence; and market-moving issues likely to have an effect on it in the foreseeable future (e.g., changes in policy at the U.S. Federal Reserve).

If you employ the sector SPDRs as market indicators, then you might want to read all of these articles. If you use a given sector SPDR as either an investing or a trading vehicle, then you might want to read the piece related to it. In any case, all nine of them are accessible via the hyperlinks appearing below:










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