Charles Sizemore, CFA shares his investment strategies with MarketWatch:
If you are unable to view the embedded video, please follow this link: Defending Against a Downturn
Related article: Three Low-Risk ETFs for a Volatile Spring
The U.S.-listed iShares MSCI Japan Index exchange-traded fund (EWJ) turned over 400 million shares worth some $4 billion on Tuesday, more than 10 times the fund’s average volume over the prior three months. Another 37 million shares traded in the first hour on Wednesday on the New York Stock Exchange.
Why would anyone want to trade amid such uncertainty?
“American investors wanting a short-term play on a Japanese recovery can consider (the fund),” Charles Sizemore, who runs Dallas money manager Sizemore Capital Management, said. While not advocating a long-term bet on Japan, “in the short to medium term, I like Japan as a contrarian value play. Natural disasters tend to have only very short-term effects on the stock market,” Sizemore added.
Continue reading “Perspectives on the Japan Earthquake”
On April 3, 1848, Queen Victoria, Prince Albert, the Duke of Wellington, and much of the court knelt in the rain on London’s East India Docks…waiting. Governor Qiying’s armada would be arriving from China at any moment, and Victoria would be expected to pay her respects to His Majesty, the Grand Exemplar, the Cultured Emperor Daoguang, submit to his overlordship and open British ports to Chinese traders.
Victoria would live the rest of her life in shame, going down in history as the queen who lost Britain to heathen infidels.
Of course, none of this actually happened. On that date in 1848, Victoria and Albert went to the East India Docks not as vassals to a new master but as tourists—to view a Chinese junk that British businessmen had brought back from Hong Kong.
Continue reading “Why the West Rules—For Now”
Dr. Shilling has had a long and wildly successful career as an economic forecaster. Shilling was one of the few voices of reason that foresaw the busting of the Japanese bubble of the late 1980s, and he also correctly forecasted the bursting of the 1990s Internet bubble and the mid-2000s housing and financial sector bubble. I am delighted to find him on “our” side of the inflation/deflation debate.
Continue reading “Book Review: The Age of Deleveraging”
With the boom years of the 1980s and 1990s now a distant memory, it is not shocking to see investors losing faith in the cult of capital gains and gravitating instead to dividend-paying stocks and ETFs. In a world in which paper gains can be ephemeral, it’s good to be paid in cold, hard cash.
In many ways, this is simply a return to the basics of investing. Historically, before federal capital gains taxes and Modern Portfolio Theory shifted the industry to a focus on growth, dividends were the primary source of investor returns (see Figure 1), and over the past twelve years dividends have been the only source of investor returns.
Continue reading “How to Choose the Right Dividend ETF”