The economic cycles have turned negative on this attractive investment sector. Despite this sector having at one time been up by more than 16% this year, the signals are flashing that it is time to take profits. In fact, the primary ETF in the sector recently suffered its worst day of capital outflows since 2011. While at the same time, the bond-based ETF of this sector experienced $300 million in outflows, the most ever on record. #-ad_banner-#A Bloomberg analyst stated that we could see $20 billion of outflows from this sector by November 18th. Apparently, big money has announced its… Read More
The economic cycles have turned negative on this attractive investment sector. Despite this sector having at one time been up by more than 16% this year, the signals are flashing that it is time to take profits. In fact, the primary ETF in the sector recently suffered its worst day of capital outflows since 2011. While at the same time, the bond-based ETF of this sector experienced $300 million in outflows, the most ever on record. #-ad_banner-#A Bloomberg analyst stated that we could see $20 billion of outflows from this sector by November 18th. Apparently, big money has announced its intentions. Despite the bearish signals, the mainstream financial press is alive with articles attempting to prop up the sector. The question is, will you continue plowing money into the “hot” sector of 2016, or heed the warning signs? First, let’s take a quick look at the nature of financial cycles. Most every investor knows that the market often acts in cycles. However, investors often ignore the fact that hot stocks — or even sectors — will not stay hot forever. Take the Internet bubble, for example. It was very clear that shares of untested, and often revenue-less, companies could not… Read More