Debt Disorder Takes a Toll on Dividend ETFs

Roughly one hour before bond and stock markets closed on Monday, 7/25/11, congressional Democrats expressed that the House Republican debt plan was a “non-starter” in the Senate. Wince! Six hours later, President Obama spoke to the American people about a potential catastrophe that could see interest rates on credit cards, mortgages and car loans skyrocket. Yikes! And one hour before the markets finished on Tuesday, 7/26/11, the White House threatened the possibility of vetoing the Boehner 2-step approach. Geez! In spite of the scary public discourse, neither the bond market nor the stock market have taken the bait yet. Indeed, I’ve discussed the probability that markets would remain relatively calm in earlier features. (See “Bond ETFs Predict Debt Ceiling Will be Raised Without Incident” and/or “Debt Ceiling ETFs: A Different “Gang of Six.”) Who has profited the most from the high profile political theatre? Those who chose to combine ”Fear... Read more