Active money managers like myself often use stop-limit loss orders and trendlines to minimize the risk of bearish downtrends. That is why Europe-oriented ETFs have not been a consideration for my clients since July. Moreover, in the reallocation of those dollars, only the technical uptrends receive examination. This is why ETFs that contributed to my barbell thesis – funds like Vanguard Long-Term Bond (BLV) and iShares S&P 100 (OEF) – garnered more inflow from Pacific Park Financial, Inc.
In sum, the almighty buck’s power coupled with zero percent rate policy are giving overpriced U.S. equities the juice to grind higher. By the same token, global economic uncertainty and comparable developed world yields continue to favor longer-term U.S. bond ETFs over foreign stock ETFs. In fact, iShares 20+ Year Treasury (TLT) increased its weekly fund flow in the week ending November 7 by 12%.