This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock ETFs Completely Decouple From U.S. Economic Concerns


The ramifications are relatively straightforward. Do not sweat the troubles at retailers from RadioShack (RSH) to Best Buy (BBY) to Staples (SPLS); do not worry about the incredible decline in after-tax disposable income. We're a nation of spenders that will find a way to spend, particularly if the central bank of the United States makes certain that businesses and consumers have easy access to cash. Therefore, go right ahead and invest in consumer discretionary companies via the SPDR Sector Select (XLY) exchange-traded fund as well as retailers via the SPDR Retail (XRT).

Similarly, few would argue that we are in the earliest stages of the business cycle where profit and revenue growth is accelerating. Even fewer can argue that employment and income activity is rising when labor force participation is stuck in the 70s and personal income is struggling. Even credit growth is waning.

So it is a fair statement to suggest that we might be in the middle of an economic expansion or in the late-cycle phase with a single exception: massive policy accommodation by the Fed. That lone fact places a number of early-cycle stalwarts like basic materials at the front of the "for-your-consideration" pack. Indeed, SPDR Select Basic Materials (XLB) is riding a wave of excitement here in 2014.

To be clear, I continue to participate in the developed world bull market. I keep buying selloffs and dips. The difference is that I remain committed to non-cyclicals with less rate sensitivity like SPDR Select Healthcare (XLV) and iShares Defense & Aerospace (ITA)I also prefer less volatility in the equity exposure via funds like iShares USA Minimum Volatility (USMV).

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs