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For the last decade, Brazil has been an emerging super power, building in infrastructure and opportunities for nearly 40 million impoverished citizens to work their way into the middle class. But a shift is working its way through the economy; rising inflation, debt, and a weakening currency have stripped many in the middle class of that title. The tension boiled over last week when a small protest against bus-fare increases was brutally squashed by the police force, and now people have taken to the street in droves to protest their government’s spending practices [see Single Country ETFs: Everything Investors Need To Know].  Over 30,000 people marched in in Rio de Janeiro Monday night and more in other major cities. President Dilma Rousseff is at her lowest approval rating ever and World Cup officials are reportedly debating if Brazil can handle the massive game set for next year. Once an obvious choice for investors, Brazil [...]Click here to read the original article on ETFdb.com.Related Posts:Ultimate Guide To iShares Latin America 40 Index Fund (ILF)UBS Launches Risk On / Risk Off ETNsTen Best ETF Performers Over The Last Five Years (Including A Few Surprises)Emerging Market ETFs: Seven Factors Every Investor Should ConsiderBrazil ETFs: Nine Ways To Play

Wall Street got off to a relatively strong start this week, though investors kept their focus primarily on the Federal Reserve’s two-day policy meeting. In other economic news, the housing industry came into focus as hombuilder sentiment, building permits and housing starts were reported. The NAHB/Wells Fargo homebuilder sentiment index soared to 52 in June, marking the first reading above 50 since April 2006 and the biggest jump since 2002. Building permits and housing starts data, however, were somewhat underwhelming [see The Cheapest ETF for Every Investment Objective]. Building Permits and Housing Starts Miss the Mark The Census Bureau reported that building permits came in at 0.97 million permits for the month of May, slightly below analysts’ expectations of 0.98 million permits. In the previous recording, building permits came in well above expectations, with the metric coming in at 1.02 million compared to the forecasted 0.94 million. Yesterday’s housing starts data [...]Click here to read the original article on ETFdb.com.Related Posts:Daily ETF Roundup: XHB Pops On Homebuilder Data, EWG Jumps On Bundesbank OutlookHomebuilder ETFs In Focus After New Home Sales DataETFdb Weekly Watchlist: XHB, TLT, XLI Hinge On Housing, Durable Goods And BernankeHomebuilder ETFs In Focus After Housing DataETFdb Weekly Watchlist: XRT, EWG, XHB Hinge On Retail, Sentiment And Housing Data

Bullish momentum returned on Wall Street today, pushing equities to the highest levels in almost three weeks as the Federal Reserve kicked off their two-day meeting to discuss its bond-buying program. In economic news, the consumer price index for May rose 0.1%, slightly below expectations. On the housing front, building permits fell in May, while housing starts rose 6.8% to 914,000 units, missing analysts’ expectations of a 950,000 figure [see The Cheapest ETF for Every Investment Objective]. Global Market Overview: XLI Rallies Alongside Industrials, VOX Pops As investors turned their attention to the Fed, all three major U.S. equity indexes rallied to close in positive territory. The Dow Jones Industrial Average ETF rose 0.87%, after its underlying index rallied 138.38 points. The S&P 500 ETF gained 0.79%, while the tech-heavy Nasdaq ETF rose 0.81%. In Europe, markets were mixed ahead of the Fed’s press conference; the Stoxx Europe 600 slipped 0.1%. Meanwhile, Japan’s Nikkei Stock Average fell [...]Click here to read the original article on ETFdb.com.Related Posts:Daily ETF Roundup: Stocks End Week On A Strong Note, XLI RalliesDaily ETF Roundup: Dow Closes Above 15,000, VOX Rallies Alongside Telecom StocksDaily ETF Roundup: Stocks Close Lower On First Day Of Q2Daily ETF Roundup: Stocks End Lower After Fed MinutesDaily ETF Roundup: XHB Pops On Homebuilder Data, EWG Jumps On Bundesbank Outlook

I laugh when I see mainstream headlines spouting off about what macroeconomic data reports purportedly show. Reuters thinks stabilizing inflation will be a comfort to the Fed. Let's leave aside for the moment the fact that the Fed will continue its unlimited bond-buying programs to prop the valuations of the stock, bond, and housing markets. The BLS CPI has major flaws, as noted in Shadow Government Statistics' deconstruction of the chained methodology. SGS's annual inflation estimate is about 4-7% higher than the official CPI, depending on the base year. Most mainstream analysts aren't interested in checking this discrepancy. So-called worry about a "downward wage-price spiral" seems to me like a straw man. Fed economists probably know about the government's flawed reporting. The Fed members most worried about deflationary price moves are the members of Bernanke's pro-inflation faction who want to continue the bond-buying program. Concern about igniting inflation is actually driving more reticence inside the Fed, according to FOMC meeting minutes in April. It's important to note that the purpose of indefinite QE, as Fed members have admitted, is more about supporting asset markets that will generate a hoped-for "wealth effect" on consumer spending.

It's been announced that ValueAct Capital's Jeff Ubben and Marcato Capital Management's Mick McGuire will both be speaking at the Value Investing Congress in New York City on September 16th. These are two highly successful activist investors and they'll be presenting their latest investment ideas at the event. Special Offer For Market Folly Readers Market Folly readers receive a 36% discount to the event by clicking here and using discount code: N13MF2 Take advantage of this special offer because it expires in just over one week (June 27th). Full Speakers List There will be a ton of hedge fund managers presenting investment ideas at this year's New York event. Here's the full list: Jeff Ubben, ValueAct Capital Mick McGuire, Marcato Capital Management Alexander Roepers, Atlantic Investment Management Guy Gottfried, Rational Investment Group Evan Vanderveer & David Shapiro, Vanshap Capital Mark Boyar, Boyar Value Group Rahul Saraogi, Atyant Capital India Chris Mittleman, Mittleman Brothers Carl Chen & Tom Lu, Temple Honor Asia (Taiwan) Chris Mayer, Capital & Crisis Joe Altman & Chris Kyriopoulos, COMPOUND Capital Whitney Tilson, Kase Capital Even more speakers will be announced in the coming weeks as well. Why Attend? - Hear the latest investment ideas from top hedge fund managers - One successful pick will easily more than cover your cost of admission - Huge networking opportunity with other investors/managers - Discounted registration prices for being a Market Folly reader Save $1700 off the normal admission price by registering here with our special offer code: N13MF2

Dan Loeb's hedge fund firm Third Point has been pushing for a partial spin-off of Sony's (SNE) entertainment division. Loeb initially hand-delivered a letter to Sony's management team, outlining his plan for the company. Loeb has since increased his position in Sony to around 7% of the company and sent another letter to Sony's CEO which we've posted below via WSJ: "Mr. Kazuo Hirai President and CEO Sony Corporation 7-1, Konan 1-Chome, Minato-ku, Tokyo 108-0075 Japan Dear Mr. Hirai: Sony Corporation (“Sony” or “the Company”) appears to be regaining its competitive edge. Recent highlights include the debut of PlayStation 4 with its consumer-friendly approach to next-generation gaming and Xperia, which recently overtook Apple as the #1 smartphone in Japan. We expect the upcoming Xperia Z Ultra to generate similar success in Europe and were pleased to see Vodafone VOD.LN +0.90%’s CEO using an Xperia Z in a recent meeting. As a sign of our increased confidence in the Company’s direction under your leadership, funds managed by Third Point LLC (“Third Point”) have increased their stake in Sony to 70 million shares valued at ¥136.5 billion ($1.4 billion), held via 46 million shares of ordinary stock valued at ¥89.7 billion ($944 million) and economic exposure to 24 million shares valued at ¥46.8 billion ($492 million) through cash-settled swaps. Given our large stake, we reiterate our offer to serve on Sony’s Board of Directors. Another sign of progress is the news that the Company has retained financial advisors to help evaluate our proposal to publicly list a minority stake in Sony Entertainment (“Entertainment”) through a rights offering backstopped by Third Point. We remain convinced that the proposed transaction will strengthen the Company as a whole. The newly-listed entity will thrive with a governance structure which focuses on increasing profitability, competitiveness and accountability. We expect that this transaction will strengthen rather than diminish Sony’s ability to exploit meaningful synergies between the Entertainment and Electronics divisions, a goal we share. Our proposal is a simple one: it contemplates a semi-independent governance structure. We believe that you, Mr. Hirai, should serve as Chairman of both Boards, to promote synergies between Entertainment and Sony Corporation. Entertainment’s dedicated Board should be composed of diverse individuals with deep knowledge of media, entertainment and digital technology, who value creative talent and can institute best practices of governance. Today, Entertainment is a sleeping giant — a multi-platform content business with a global footprint, encompassing leading film and television production, cable networks and music interests. An incredible opportunity exists to integrate Entertainment’s components to create a dominant creative platform for today’s artist-entrepreneurs – but the right leadership at the Board level is imperative. An independent Entertainment Board will go a step further: holding management accountable by establishing goals for growth while setting compensation tied to value creation using stock and options. It can also help determine important capital allocation decisions, ensuring that Entertainment’s robust cash flow is used efficiently. A capital shortfall has prevented Sony from taking advantage of attractive acquisition opportunities; instead, the Company has resorted to joint ventures and costly loans to engage in strategic transactions like those in music publishing (i.e. EMI). Our research has confirmed media reports depicting Entertainment as lacking the discipline and accountability that exist at many of its competitors. In light of this track record, it seems difficult to argue that Entertainment would not be strengthened by the transparency that comes with public reporting, an active media analyst community evaluating financial performance regularly, and an expert Board with strongly aligned incentiv

Adam Weiss and James Crichton's hedge fund firm Scout Capital has filed a 13D with the SEC regarding shares of Tim Hortons (THI). Per the filing, Scout has revealed a 5.5% ownership stake in with 8.4 million shares. This marks a 271% increase in their position size since the end of the first quarter as they only owned 2.26 million shares then. The 13D was filed due to portfolio activity on June 6th. The fine print of the filing also outlines what Scout is trying to accomplish with their new activist position: Scout has "engaged and expect to continue to engage in discussions with senior management of the Issuer with respect to the Issuer’s optimal capital structure, capital expenditures, timing and magnitude of share repurchases, management compensation metrics, and technology investments, among other matters." Per Google Finance, Tim Hortons is "a quick service restaurant in North America. The Company’s menu includes premium coffee, espresso-based hot and cold specialty drinks, including lattes, cappuccinos and espresso shots, specialty teas, fruit smoothies, home-style soups, grilled Panini and classic sandwiches, wraps, hot breakfast sandwiches and fresh baked goods, including donuts." For more on this hedge fund, we highlighted a new stock Scout has been buying recently.

Sarcasm isn't just for Mondays. It's for any day of the week. The Port of Los Angeles says its container volume is way down from a year ago. I think Americans are too broke to buy imported stuff and our Asian pals are too broke to buy our stuff. This indicator will of course have to be aggregated with other port traffic from around the country to mean anything. Maybe it means little if Great Lakes shipping traffic is picking up. The US and Europe are starting to explore a free trade deal. No way is such a deal going to be consummated before the next financial crisis hits. Why policy elites would spend their precious time on this rather than financial reform is beyond me. This policy effort has a surprising amount of inertia given that the US has been without a Secretary of Commerce for a year. Don't look now, but China is bailing out its commercial banks. I have had nothing to do with Chinese stocks for some time because I knew something like this was coming. Did someone in Beijing open a fortune cookie with a message about having busted banks in their future? Chinese pensioners and annuity owners are going to experience a revolutionary level of anger when these forced investments don't pan out. The Administration now reveals it's time for Ben to leave the Fed. Helicopter Ben's enthusiasm for fulfilling his hyperinflationary PhD thesis is cooling faster than the Chinese economy. This hint has been choreographed with other hints to reassure the markets that the heir apparent, Janet Yellen, will continue present policy. The designated patsy will reap the final fruit of the Bernanke Fed's monetary stimulus policy. Iran's election results will not change Iran. Ignore lip service to internal reform and re-engagement with the world. The ayatollahs set policy for the elected figureheads. The world price of oil can still be held hostage by an Iranian miscalculation in the Strait of Hormuz. I still think Persian women are hot provided they don't wear burqas.

Alternative energy has been a hot button issue for the last 50 year,s and investors have always found a way to play this heated market. In the last decade, there has been the launch of a number of ETFs that offer a specialized basket of products for alternative energy exposure, with 12 of these funds still in operation today. Below we outline two green energy ETFs that have been battling for investor attention since inception: Powershares WilderHill Clean Energy Portfolio and Guggenheim Solar ETF   [Download How To Pick The Right ETF Every Time]. Meet the Competitors Holding between $172 million and $107 million in total assets under management each, these funds are easily the largest green energy funds currently on the market. PBW holds a mix of companies that are focused on greener and generally renewable sources of energy, as well as technologies that facilitate cleaner energy. TAN, on the other hand, [...]Click here to read the original article on ETFdb.com.Related Posts:Head-To-Head: Alternative Energy ETF SurprisesEarth Day Special: Definitive Guide To Clean Energy ETFsTen Of The Worst Performing ETFs Of The First QuarterSolar ETFs Off To A Not-So-Bright StartETF Plays Ahead Of G-20 Summit

With more information available and the ability to quickly trade options online, investors are becoming savvier with using options to speculate, hedge and create their own financial strategies using a combination of ETFs, options and other assets. Options are financial products that fluctuate based on an underlying asset, such as an ETF. The value of the option is determined by multiple factors, including the amount of time until the option expires, volatility in the underlying asset and the proximity of the option’s strike price to the underlying asset’s price. Option pricing models also give us “Greeks”- values used to determine how the underlying asset and option price are related. Learning to read an options table will provide more insight into these concepts and how they relate to option value. Be sure to also read What Every ETF Investor Needs To Know About Options for an introduction to options. Information Sources The [...]Click here to read the original article on ETFdb.com.Related Posts:Daily ETF Roundup: XHB Pops On Homebuilder Data, EWG Jumps On Bundesbank OutlookDaily ETF Roundup: Stocks End Week In The Red, IXC Slumps Alongside Energy SharesDaily ETF Roundup: FXG Pops On Safeway Acquisition, XLF Rallies7 Articles ETF Investors Must Read: 6/13Daily ETF Roundup: Dow Falls Below 15,000, XLY Slumps, TUR Jumps