As much as I like Australia as an investment destination I have to think this move up is a little over done. Amusingly Ben Pedley from LGT Bank, whom I have the utmost respect for, answered an email on the air that I sent in to Asia Squawk Box on the subject. I asked if the Aussie might be a little over bought, he said it probably is but that it could go to $0.82 or $0.83 before any sort of a pullback.
Apparently the futures market is pricing in three rate cuts by the Fed this year. Count me as a naysayer on that action.
I caught a few minutes of the Kudlow show last night and they talked at length about ETFs and one of the guests for the segment was Matt Hougan from Index Universe, way to go Matt.
There was someone from XTF Advisors (please correct me I have this wrong) with a 60/40 ETF portfolio as follows;
- S&P 500 SPDR (SPY) 24%
- Vanguard Mid Cap (VO) 8%
- iShares Russell 2000 (IWM) 9%
- MSCI EAFE (EFA) 19%
- iShares ST Treasury (SHY) 8.5%
- iShares Intermediate Treasury (IEF) 8.5%
- iShares LT Treasury (TLT) 7%
- iShares Corp Bond (LQD) 5%
- Vanguard REIT (VNQ) 11%
As far as treasury ETFs unless they are for small accounts or for a trade I would say most folks are better to lock in a rate with an actual treasury.
One last point, here is a vote for Pisani to replace Kudlow. Bob mostly just asked question in the part of the show I saw without pounding the audience, or the guests, over the head with his opinions.
I said this in a video post a couple of weeks ago, for as little as I see the show, I really don't trust when he spits out data, I don't know if it is cherry picked to the point of being misleading, I just don't know.