Tag Archives: EMB

ETF News, Fixed Income, Global Macro Strategy

Global Macro Strategy: Get Short-y

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MarketsMuse global macro strategy insight courtesy of extract from today’s a.m. edition of Rareview Macro LLC’s “Sight Beyond Sight”, which includes references to the following ETFs: EMB, HYG and LQD.. For those already subscribing to “SBS”, you already know that this market strategist incorporates a cross-asset model portfolio that has outperformed a significant number of those who oversee billions of dollars on behalf of the world’s most demanding investors.

Neil Azous, Rareview Macro
Neil Azous, Rareview Macro

New Tactical Trade – Short German DAX…Model Portfolio -33% Net Short Equities

US Dollar Input – Not Just “Patient” and “QECB” but also Balance Sheet Management

Credit – Watch EMB, HYG, LQD Today

Model Portfolio Update – March 6, 2015 COB:  +1.04% WTD, +0.89% MTD, 0.00% YTD

This morning, in the model portfolio we sold short the German DAX. Specifically, we sold 200 GXH5 (DAX Mar15) at 11485. This is a short term directional trade. The notional equates to 20% of the NAV. The update was sent in real-time via Twitter.

All in, between the S&P 500 and DAX, the model portfolio is approximately-33% net short equities. To put it in simple terms, there is an opportunity right now to short the market. Why? Because, either the FOMC Committee blinks, and you get paid until they do, or they do not blink and you get paid as risk assets discount further interest rate normalization. Either way, your short position will make you money.

Here is the best way to describe our sentiment at the moment: Continue reading →

ETF News, People Profiles

New ETF in Advance of Memorial Day: BBQ–Contributor Column

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Contributed by Chris Hempstead, Head of ETF Execution for WallachBeth Capital

Chris Hempstead, WallachBeth Capital
Chris Hempstead, WallachBeth Capital

This week we saw 2 large creates in funds we don’t hear much about. The first was FBG (FI Enhanced Big Cap Growth ETN) with what looks to be about a $600mm creation on Monday. The second worth mentioning was the ESR (iShares MSCI Emerging Markets Eastern Europe) with a roughly $100mm creation on Tuesday.

There were some very heavy directional flows today despite lighter volume on the pre-holiday Friday.
Equities: Inflows today were clear in VUG (Vanguard Growth), VTV (Vanguard Value), IJH (iShares Core S&P MidCap and XLP (Consumer Staples Select Sector SPDR).

Where there are inflows there are also outflows and here they are: EEM (iShares MSCI Emerging Markets), VWO (Vanguard FTSE Emerging Markets), FXI (iShares FTSE China 25), AAXJ (iShares MSCI Asia Ex-Japan), EPP (iShares MSCI Pacific Ex-Japan) and EWH (iShares MSCI Hong Kong).

Fixed Income: The fun didn’t stop at the equities level. MINT (Pimco Enhanced Short Maturity), SHY (iShares Barclays 1-3 Year Treasury) and HYG (iShares Iboxx High Yield Corp); all had nice inflows today.
On the flip side, we saw heavy outflow in EMB (iShares JP Morgan Emerging Market Bond), SHV (iShares Barclays Short Treasury) and JNK (SPDR Barclays High Yield).

Given the Memorial Day Weekend and Holiday, I wanted to be one of those stock market guys who throw out stats that don’t actually tell you anything except what markets did in the past.  So I looked at the S&P performance for 1 month following the Memorial Day Holiday back to 2005. Do you know what I saw?  Nada!  Except for a rough patch in 2008 (-7.5%), I wasn’t really sensing anything worth analyzing and little or no trend. SO, just in case you were wondering, now you know.

My gift to you for the start of grilling season is a special dish I invented during a power outage (I had to cook the stiff that was defrosting): A few lbs of thick cut or slab bacon, seasoned heavily with Cajun spices.

·        Place the seasoned and dry rubbed bacon slices on a grill over medium heat and slowly cook, and regularly flip.

·        Move the slabs and lower the heat if flare ups get out of control. You can also use foil to avoid flare ups but you will lose some charring if you choose this method. Do your best to avoid burning these babies. The true magic is the slow and steady cooking.

·        Bring a cold beer outside and work the grill. You will not believe how delicious a well-done seasoned piece of slab bacon tastes.

I am reading a book about anti-gravity. I can’t put it down.
Happy Memorial Day!