Finance Friday #7: Retail Revolution

It has been a newsworthy week in both politics and markets. To me, politics is usually of little significance, as are the daily market swings surrounding them. Over time, the market goes up, despite politicians’ attempts to get in the way. Politicians are gnats that responsible people have to swat at, but in the long run that is the extent of their impact. Good finance is all about having a long-term view that finds value and manages risk.

Quote of the Day

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Investment of the Week

The Vanguard FTSE Emerging Markets Index Fund ETF (VWO) is an inexpensive (0.14% expense ratio), cap-weighted emerging markets fund with a massive 4,122 holdings and a low portfolio turnover of only 6%. It is reasonably valued with a P/E of 15.25, has an attractive quarterly distribution yield of 2.42%. Its chart is in an interesting consolidation pattern that could be bullish.

Chart of the Day

This chart and other data from FinViz.com (great site to get quick charts and fundamentals) shows the ascending wedge forming for the SPDR S&P Retail ETF (XRT). It has been as low as $37.72 within the past year. Excellent May numbers sent it soaring in June to a high of $50.66.

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Read

Technology “bubble” fears don’t hold up
Russ Koesterich, BlackRock Blog, 06.13.2018

U.S. retail sales post biggest gain in six months
Reuters, 06.14.2018

Exclusive: Microsoft takes aim at Amazon with push for checkout-free retail
Jeffrey Dastin & Stephen Nellis, Reuters, 06.14.2018

AI Doesn’t Eliminate Jobs, It Creates Them
Michael Xie, Forbes, 05.01.2018

10 Undervalued Low-Volatility Stocks
Karen Wallace, Morningstar, 06.05.2018

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