Hobson owned a livery stable and he rotated his horses to different stalls. He offered them the choice of taking the horse in the first stable or none at all. Henry Ford also offered a variation of Hobson’s Choice since customers could buy a car from him but it had to be black. The stock market offers many choices but only stocks are effective as bonds offer no yield while Fed policies have forced investors to stocks or nothing else.
This is basically the issue for investors in financial markets, buy stocks or nothing else. Farmland is admittedly in a bubble as Iowa farmland now goes for $8,500 per acre. If you can buy it right, some residential real estate offers a decent rental yield. Then there is the weird world of collectibles where you really need to know what you’re doing and have adequate cash.
So stock markets remain in play at least for most institutions. We’ve seen heavy volume sell-offs meaning most retail investors continue to loathe and leave markets. It remains a market for captive retirement money and institutions including financial and hedge funds.
Tuesday markets rose once again helped by a friendly CPI report and more New Home Construction which rose to 1.095M vs 963K expected & prior 945K.
Leading market sectors higher included: DOW (DIA), S&P 500 (SPY), Small Caps (IWM), Tech (QQQ), Home Builders (ITB), Retail (XRT), Consumer Discretionary (XLY), Utilities (XLU), Materials (XLB), Oil & Exploration (XOP), Healthcare (XLV), Value (VTV), Small Cap Value (VBR), Solar (TAN), South Korea (EWY), Brazil (EWZ), Taiwan (EWT), Emerging Markets (VWO), Hong Kong (EWH), Turkey (TUR), Russia (RSX), India (EPI), Natural Gas (UNG) and Asia ex-Japan (AAXJ).
Leading market sectors lower included: Bonds (TLT), Crude Oil (USO), Agriculture (DBA), Silver (SLV), Gold Miners (GDX), Palladium (PALL), Copper (JJC) and Sugar (SGG).
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume was once again light and breadth per the WSJ was positive.
The major action Wednesday will focus on Fed Minutes released at 2 PM. It’s always interesting since what is it markets didn’t know about these since the rate decision a few weeks ago? Why don’t they just release them immediately?
If there’s any confusion Janet Yellen will be speaking from Jackson Hole on Friday—that’ll take care of things.
Let’s see what happens.
Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.
He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio".
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||96.83||0.42||0.44 %||00:16|
|US Dollar||81.94||0.00||0.00 %||16:59|
|Brazil||2546.744||1.53 %||4.78 %||14.82 %|
|Russia||679.217||0.71 %||3.09 %||-13.68 %|
|India||505.738||0.36 %||1.94 %||24.17 %|
|China||67.163||0.36 %||1.75 %||6.43 %|