Tag Archive | FLR

Two ETFs Likely To Be Hit By Increased Foreclosures

Despite a slowdown in foreclosure filings in December 2010, Irvine-based real estate database seller and tracker, RealtyTrac, expects the number of US households receiving foreclosure notices to significantly jump in 2011, putting additional stress on the US economy, homebuilders and the SPDR S&P Homebuilders (XHB) and the PowerShares Dynamic Building & Construct (PKB).

The total number of foreclosure filings in December totaled 257,747, marking the lowest monthly tally since June 2008 and an eight percent decrease from the prior month.  Furthermore, RealtyTrac suggests that this decline was driven by increased scrutiny over lenders and their practices.   Lenders in all 50 states are being investigated on whether or not banks and loan servicers used faulty documents and signatures on loan documents to execute and issue loans for those who did not qualify.  Read More…

Three ETFs Influenced By Obama’s Public Works Plan

In yet another attempt to bolster the US economy, President Obama and his administration used the long weekend to unveil a public works plan that emphasizes on transportation and infrastructure, potentially influencing the iShares Dow Jones Transporation Average (IYT), the PowerShares Dynamic Building & Construction Portfolio (PKB) and the PowerShares DB Base Metals (DBB).

This latest plan is estimated to cost as much as $50 billion over the next six years and includes rebuilding nearly 15,000 miles of road, constructing nearly 4,000 miles of railway, revamping airport runways and moderninzing the air traffic control system.  Additionally, President Obama called for an “infrastructure bank” which would focus on funding regional transportation upgrades. Read More…

ETFs To Play The Job Bill

By Kevin Grewal

 In an attempt to ignite the labor markets, Congress passed a $17.6 billion measure and sent it over to President Obama to sign into law, paving the path of opportunity in some sectors.

With unemployment lingering around 9.7%, spring break right around the corner and Congressional elections looming at the end of the year, the clock was ticking and policymakers decided to agree on the Job Bill. This Job Bill is expected to exempt businesses from paying the 6.2% payroll tax on newly hired employees who have been jobless for at least 60 days and offers a $1,000 tax credit to businesses who keep the newly hired workers employed for at least a full year. 

In addition, the bill provides an extra $19.5 billion, through subsidized state and local construction bonds, to shore up road and bridge construction and extend the federal highway program through the end of the year.  This extra funding could potentially lead to an increase in domestic demand for raw materials, such as steel, industrials and transportation services related to getting these materials to desired destinations. Read More…

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