SCHX News and Press, Schwab U.S. Large-Cap From 02/15/22

The stimulus payments led to a short-term boost in PCE, corresponding with increased economic growth. However, stimulus-fueled activity has a dark side. Economic stagnation arrives as expected as the sugar rush of liquidity continues to fade from the system. When it comes to the s...

Canada sheds 200,000 jobs in January amid omicron wave. U.S. consumer prices rise at fastest rate in 40 years. Are brighter days ahead for U.S. small cap stocks? For further details see: Red-Hot: U.S. Inflation Surges At Blistering Pace

While US large caps have also struggled lately, they’ve fared far better than their smaller counterparts. Over the past year, much of the Russell 1000’s outperformance is attributable to its bigger exposures to technology and consumer discretionary industries. The sm...

There’s an important disconnect between stocks and bonds today. Specially, I am looking at two fundamental indicators for evaluating long-term interest rates. The first is the performance of small cap stocks relative to large caps. Typically, this ratio has moved in concert wit...

Conventional wisdom holds that the U.S. economy is overheating. The jury is still out, but the latest reading on the Atlanta Fed’s GDPNow real-time growth measure is pretty grim. Economic spirits might change dramatically in the next few months, with corresponding changes i...

The expected risk premium for the Global Market Index edged down in January from the previous month’s estimate. Using short-term momentum and medium-term mean-reversion market factors to adjust the forecast reduces GMI’s ex-ante risk premium to an annualized 5.4%. Th...

Today, very few investments generate income sufficient to meet reasonable future expenses after inflation and taxes. The inability to meet current and future expenses from dividend and interest payments is a sign of a highly priced market. This is the season where politicians and corp...

In addition to my array of systems of long and short leading indicators, I also have an alternative, fundamentals-based “consumer nowcast”. This system looks at the array of devices consumers have at their disposal to assist increased spending. When those systems are...

Sector rotation and rolling corrections continue, further complicating the investment backdrop. As the Fed starts to “taper”, no one can claim they were shocked. The interest rate situation is an entirely different story. Fear and Greed are the two emotions that tell...

SCHX is a $34.4 billion fund that is supposed to track the performance of 750 public U.S. bellwethers. The fund has a razor-thin expense ratio, relatively low risk, and robust asset flows. As a U.S. large-cap play, SCHX scores poorly against value indicators, with the growth metri...