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Posted by on Jan 13, 2016 in Investment Perspective, TrimTabs

Loeb: Still Relevant After 80 Years

Loeb: Still Relevant After 80 Years

By Ted Theodore, CFA, Vice Chairman and Chief Investment Officer of TrimTabs Asset Management and Portfolio Manager of AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS)   About 80 years ago, Gerald Loeb wrote a book about investing that has become a classic and is at or near the top of any list of favorites for many professional investors (including me), even today.  The book is “The Battle for Investment Survival.” Loeb was a broker who became vice chairman of E.F. Hutton.  His central message was that active investing is required in a world where passive investing can be swept away by unforeseen events, events that take a toll on investor psychology and lead, eventually, to costly errors.  Thus the battle for survival.  But Loeb was very disciplined.  He started with, and relied, on the fundamentals of an investment.  But if conditions and prospects changed for that investment, he would change. Our own philosophy has clear parallels to Loeb’s principles.  As shareholders in companies we are reliant on the record...

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Posted by on Dec 13, 2013 in AdvisorShares, Market Insight, TrimTabs

Float Research: Bubble Watchers Should Set Their Sights on Corporate Bond Market

Float Research: Bubble Watchers Should Set Their Sights on Corporate Bond Market

Minyi Chen, CFA, Chief Operating Officer of TrimTabs Investment Research and Portfolio Manager of AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) shares recent fund flow trends.   Insatiable Appetite for Corporate Debt Despite Poor Performance.  Corporate Bond ETFs Issue Staggering $21.6 Billion (27.5% of Assets) Year-to-Date. We have read a lot of chatter about bubbles in recent months.  We think investors looking for bubbles will find the credit markets a lot more bubbly than the equity markets.  Investor appetite for corporate bonds—particularly investment-grade corporate bonds—is seemingly insatiable despite near record low yields and persistently poor performance. Corporate bond ETFs posted steady inflows in the past year even though the average fund delivered a net price decline in this period.   Most recently, Corporate bond ETFs issued $641 million (0.8% of assets) in the past month and $6.2 billion (7.9% of assets) in the past three months.  The year-to-date inflow now totals a staggering $21.6 billion (27.5% of assets).  It is amazing how eager investors are to lend money to...

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Posted by on Nov 22, 2013 in AdvisorShares, Market Insight, TrimTabs

Float Research: Demand Indicators Point to Jolly Holiday Season for U.S. Equity Investors

Float Research: Demand Indicators Point to Jolly Holiday Season for U.S. Equity Investors

Minyi Chen, CFA, Chief Operating Officer of TrimTabs Investment Research and Portfolio Manager of AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) shares recent fund flow trends. Demand Indicators Point to Jolly Holiday Season for U.S. Equity Investors.  ETF Flows Turn More Encouraging for Short Term. Our demand indicators suggest the stock market party can keep right on rolling through the holiday season.  Reflecting the impact of ongoing Federal Reserve stimulus, our demand indicators remain very favorable for the intermediate term and have turned more favorable for the short term.  Any market dips should be treated as buying opportunities. ETF flows have turned more auspicious for stocks in the short run.  Investors in leveraged ETFs, who tend to be poor market timers, turned more pessimistic.  They pulled 0.6% of assets out of leveraged long ETFs in the past week and added 0.4% of assets to leveraged short ETFs. Another encouraging sign is that U.S. equity ETF flows have subsided.  These ETFs issued $1.5 billion (0.2% of assets) in the...

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Posted by on Nov 7, 2013 in AdvisorShares, Market Insight, TrimTabs

AdvisorShares Weekly Market Review – Week Ending 11/1/2013

AdvisorShares Weekly Market Review – Week Ending 11/1/2013

 Highlights of the Prior week For the week of October 28 – November 1 A Mixed Bag As the government caught up on delayed economic reports due to the shutdown, the markets delivered mixed results across asset classes and geographies for the week.  The Federal Open Market Committee (FOMC) meeting announcement last week did not change monetary policy.  For the month of October, Domestic Equity markets continued their trend for the year with robust gains driven by a strong Q3 earnings season. Most equity markets are up double digits year to date, outside emerging markets, with domestic markets being the strongest performer for the year. TrimTabs Investment Research and Portfolio Manager of AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) reported that investors pour $54.2 billion into equity based mutual fund and ETFs for the month of October, the third highest inflow on record. Bond mutual funds and ETFs posted their fifth consecutive month of outflows.  TrimTabs’ research suggests that the equity markets are due for a pause from...

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Posted by on Nov 6, 2013 in AdvisorShares, Market Insight, TrimTabs

Float Research: Investors Pour $54.2 Billion into All Equity MFs and ETFs in October

Float Research: Investors Pour $54.2 Billion into All Equity MFs and ETFs in October

Minyi Chen, CFA, Chief Operating Officer of TrimTabs Investment Research and Portfolio Manager of AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) shares recent fund flow trends.   – Investors Pour $54.2 Billion into All Equity MFs and ETFs in October, Third-Highest Inflow on Record.  Bond MFs and ETFs Post Fifth Consecutive Monthly Outflow. – New Offerings Surge to $23.6 Billion in Past Two Weeks, and Dealogic Reports $4.3 Billion Already Scheduled for This Week. ETF flows suggest stocks will have a tough time moving much higher.  Inflows into leveraged short ETFs stopped in the past week, which is a cautionary sign from a contrarian perspective.  Even more worrisome, investors are pouring money into equities.  All equity mutual funds and ETFs received $54.2 billion in October, the third-largest inflow on record.  All three of the largest monthly inflows into all equity funds have occurred this year, and this year’s inflow of $286 billion into all equity funds is the biggest since 2000.  When fund investors are as upbeat as...

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Posted by on Oct 30, 2013 in AdvisorShares, Market Insight, TrimTabs

Float Research: Fund Flows Shift Dramatically This Year as Investors Embrace Risk

Float Research: Fund Flows Shift Dramatically This Year as Investors Embrace Risk

Minyi Chen, CFA, Chief Operating Officer of TrimTabs Investment Research and Portfolio Manager of AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) shares recent fund flow trends.   Fund Flows Shift Dramatically This Year as Investors Embrace Risk.  All Equity Funds Get $281 Billion, Biggest Inflow since 2000.  Bond Funds Redeem $24 Billion, Biggest Outflow since 2000. The Federal Reserve has been trying for almost five years to coax savers and investors into stocks by printing money to inflate the prices of assets in general and U.S. stocks in particular.  The Fed finally seems to be succeeding.  We are witnessing the biggest shift in fund flows since the crash of 2008. On the one hand, investors have flocked to equities.  The inflow of $281 billion into all equity mutual funds and exchange-traded funds this year through Monday, October 28 is the biggest annual inflow since the height of the technology stock bubble in 2000, when $324 billion flowed into equity funds.  Breaking flows down, U.S. equity MFs and ETFs...

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