If there was any confusion why the Fed intends to keep hiking rates, even in the face of negative economic data, it was all put to rest today when not one, not two but three Fed speakers, including the two most important ones, made it very clear that the Fed's only intention at this point is to burst the asset bubble.
Amid a slew of mixed housing data (weak starts, permits; rebound in existing sales at record median prices), S&P CoreLogic Case-Shiller reports that home price growth slowed to just 0.28% MoM (the weakest since Aug 2016), considerably worse than the average seasonal slowdown.
Year-over-year gains also slowed to just 5.67%, missing expectations.
Stocks have done well this year and the past 90-days. Which would you rather have owned the past 90-days and Year to date, the S&P 500 or Bond fund ZROZ? Below looks at the performance of the S&P and ZROZ over the past 90-days.
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Authored by Lance Roberts via RealInvestmentAdvice.com,
I have regularly written about the many shortcomings of human psychology when it comes to investing. More importantly, while the emotions of “greed” and “fear” are the predominant drivers of not only investor behavior over time, they are also attributable to the development and delivery of the financial products that Wall Street promotes.
When it comes to S&P 500 ETF’s, they may be equal (who stocks they own), yet they can be much different when it comes to performance. Below compares the Equal Weight S&P 500 ETF (RSP) to the S&P 500 (which is Cap Weighted), since the 2009 lows. Which ETF would you rather own, RSP or SPY?