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DIG this oil and gas ETF

"There is a very interesting situation developing in the oil and gas industry," says Mike Turner. In the Trade of the Week advisory, he looks at the Oil & Gas Ultra ProShares (NYSE: DIG).

"Even though global economies are not rapidly recovering (although they do seem to be on a positive upslope), and even though there seems to be a bit more supply than demand in the energy markets, oil and gas stocks continue to move higher. What's behind this move?

"Oil has become the inverse proxy to the U.S. dollar. As the dollar weakens, the price of oil is moving higher. With the burgeoning debt piling up in the U.S., the dollar looks to be under pressure to move lower for the foreseeable future.

Continue reading DIG this oil and gas ETF

Commodities and population growth

"Population growth will likely spur increased demand commodities," says ETF expert Doug Fabian. In Making Money Alert he looks at PowerShares DB Commodity (NYSE: DBC).

"World population growth trends suggest massive numbers of new global citizens on the way -- citizens that are going to require essentials such as food, clothing and shelter.

"For investors who want to ride this population wave, I offer you the PowerShares DB Commodity Index, an exchange-traded fund that seeks to track the performance of the Deutsche Bank Liquid Commodity index.

Continue reading Commodities and population growth

PowerShares Agiculture (DBA): Farm favorite

"There are many reasons to like the PowerShares DB Agriculture (NYSE: DBA), an exchange-traded fund that tracks agricultural commodity prices," says fund expert Doug Fabian.

In The ETF Trader, he explains, "We like the technical picture. In addition, we believe commodities are a great hedge against inflation.

"Overall, we like the patterns taking shape in the world's key agricultural crops. The price charts of crops like corn, soybeans, sugar and wheat all have given us one compelling message, and that message is it's time to buy.

Continue reading PowerShares Agiculture (DBA): Farm favorite

Money Map points to Brazil

Despite a 46% gain since adding iShares MSCI Brazil (NYSE: EWZ) to his portfolio, global expert Keith Fitz-Gerald still sees upside potential. Here's the latest from Money Map Reporter.

"History tells us that the best gains come to those who have the courage to buy undervalued companies in the face of extreme pessimism – and that sounds a lot like right now. So while we may not be at the very bottom, we are nonetheless pretty darn close.

Continue reading Money Map points to Brazil

US Natural Gas (UNG): For 'Xcelerated Profits'

"After enduring one of the worst slumps on record, we're beginning to see a rebound in all major commodities market," says Lee Lowell, adding "But one commodity stands out in particular -- natural gas."

In Xcelerated Profits Report, he explains, "This could represent the best buying opportunity in several years." Here's his review of the United States Natural Gas Fund (NYSE: UNG).

"As it so often does, it's no surprise to see the energy market leading commodities higher over the past few weeks -- specifically, crude oil and natural gas.

Continue reading US Natural Gas (UNG): For 'Xcelerated Profits'

Sector ETFs: Energize your portfolio with XLU

With the shift of power in the United States one of the hot topics is obviously America's dependence on oil and fuel consumption. During the coming administration we're likely to see a change in the energy field as new options are sought. It's likely that there will be some newcomers to the industry, but most likely the old standards will continue to pave the way for the future of energy.

I doubt that there will be any disruptive technologies to change the utilities in my lifetime. By investing in an exchange traded fund (ETF) consisting of a basket of utilities you will have a safe bet on energy. Utilities Select Sector SPDR (XLU) includes electric utilities, multi-utilities, independent power producers, energy traders and gas utilities.

You'll own companies such as Exelon Corp. (NYSE: EXC) a utility services holding company, Southern Company (NYSE: SO) who uses subsidiaries in the generation, transmission, distribution and sale of electricity, Dominion Resources, Inc (NYSE: D) a provider of electricity and natural gas to the eastern United States, and Duke Energy Corp. (NYSE: DUK) an energy company in the Americas. XLU also gives you a diversified basket of dividend paying stocks. Over the past year, XLU has paid about $1.20 which is currently a 4.3% yield on a $28 stock which down 33% this year (which means your dividend yield is higher). That's a lot better than 10 year T-Bills and the stocks in this index could appreciate as well.

Continue reading Sector ETFs: Energize your portfolio with XLU

'Growth' expert focuses on agriculture and commodities

"We think we've seen the worst and will likely see some improvement in the economy going forward," says growth stock specialist Harry Domash, editor of Winning Investing.

Among his buy recommendations, the advisor looks at two agriculture plays: Agrium (NYSE: AGU), a producer of fertilizers, and the diversified exchange-traded fund, PowerShares DB Commodity (ASE: DBC).

"Headquartered in Calgary, Alberta, Agrium is a major North American producer and marketer of fertilizers. Agrium operates plants in Canada, the U.S., and in Argentina. Its major product is nitrogen fertilizer but it also makes potash and phosphate products.

"Agrium sells to wholesalers and through more than 800 company-owned retail stores in the U.S., Canada, and South America. Its stores also sell seed and other farm supplies.

"Agrium just recently completed its acquisition of UAP Holding, which had operated 370 distribution and storage facilities North America. Everything related to agriculture is booming, and Agrium, not counting its UAP acquisition, is growing sales around 30% annually.

Continue reading 'Growth' expert focuses on agriculture and commodities

COW: Resources expert turns bullish on meat

"We're bullilsh on meats," says Eric Roseman, who notes, "I'm convinced we're finally at a turning point in 2008 as farmers continue to cull their herds. At some point, I'm expecting beef and pork prices to surge."

Here, the resources expert and editor of The Commodity Trend Alert looks at an exchange-traded note with a memorable trading symbol -- iPath Dow Jones Livestock (NYSE: COW). Here is his review.

"With virtually all commodities soaring over the last several months, the meats have been a disappointment - until about ten days ago. I think we finally broke-out.

"Like the grains, livestock maintain a negative correlation to common stocks. It's a great portfolio diversification tool, especially in 2008 when equities cratered during the first quarter and most commodities rallied. Live cattle and lean hogs have been poor inflation-adjusted investments or speculations since the bull market in raw materials was set afire in 2002.

"Over the last six years, live cattle and lean hogs have gained just under 30% in nominal terms, or up barely 4% adjusted for inflation. That pales compared to the huge gains logged by the base metals, precious metals, the grains and other commodities.

Continue reading COW: Resources expert turns bullish on meat

Best bets from big block traders

"Some 20,000 or more million-dollar block trades are made each day," says Peter Way in Block Traders ETF Monitor, which assesses the activity of these trades. Here's some current top "big block" bets.

"Since it's these big dollar pressures that move markets, we want to know what they are likely to do next. Our analysis determines what the pros' expectations are for the coming prices of stocks, from the way
they protect investments they have or are making.

"Based on our proprietary analysis of this big block activity, we determine the prospects for each ETF sector to determine where prices will be in the next 3 months. We seek the best balance of upside risk and downside exposures.

"We don't want to buy anything that doesn't offer a net payoff of better than 5% over three months, or an annual rate of +22%. International and global ETFs. and emerging markets still hold appeal, with MSCI Brazil iShares (NYSE: EWZ), the best bet.

"Where's the beef? Must be in MOO, the Market Vectors International Agricultural ETF (ASE: MOO). Prospects for it are the best combined odds & payoffs in the group.

"The ETFs that have been providing the most reliable and productive gains of late have been in commodities. Without any leverage, there are currently a number that appear attractive, given the volume market-makers' appraisals. The PowerShares DB Agricultural Index ETF (ASE: DBA) outranks just about all of the 2,500 issues we cover. PowerShares DB Commodities Index ETF (ASE: DBC) also offers strong buy credentials."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Nate Pile's portfolio hedges

"The current environment is one of the most challenging I have seen in the twenty years I have been following the market," says Nate Pile, who has added some ETF hedges to his Nate's Notes portfolio.

"I am also introducing two ETFs this month that can be thought of as 'indirect hedges.' Rather than being a 'short' fund, we are choosing funds that track commodity prices, which in turn, will provide a hedge against any market declines that may result from investor concern about rising inflation.

"In addition, these two new ETFs is may appreciate in value even if the market does rally from here. I actually think there is a very good chance we will make money on these 'commodity ETFs' regardless of what the stock market does next. Anyhow, without further ado, I present to you the following two ETFs:

"The PowerShares Deutsche Bank Commodity Index Tracking Fund (ASE: DBC) is designed to reflect the performance of the Deutsche Bank Liquid Commodity Index, an index that tracks six important commodities (current index weightings approximated in parentheses): light crude (33%), heating oil (19%), wheat (14%), corn (12%), aluminum (12%), and gold (10%).

Continue reading Nate Pile's portfolio hedges

DB Agriculture ETF (DBA): Growth for 'any portfolio'

"We're adding a position in one of our favorite ETFs for 2008: the PowerShares DB Agriculture Fund (NYSE: DBA), which provides investors with an alternative way to invest in the agricultural sector," says technical analyst and contrarian investor Chris Johnson.

The money manager and editor of Insightful Investor explains, "We feel a long-term position in DBA is appropriate for any investor's portfolio." Here is his review.

"One of the areas of the economy that we have been outwardly bullish on is the agricultural group. From a fundamental perspective, the 'ag play' is in full force, as demand and supply remain imbalanced. This has been a fantastic catalyst for a number of stocks that have to do with the agriculture sector, as we have heard in the news quite a bit lately.

"While we like the environment that this creates for a number of stocks, there is one agricultural investment that we do not hear trumpeted in the media as much as one might expect. We're referring to an investment in agricultural products, not the companies that help to produce the products.

Continue reading DB Agriculture ETF (DBA): Growth for 'any portfolio'

Best Stocks for 2008: Bet on commodity bull with DB Commodity ETF (DBC)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"The commodity bull market has a long way to run, powered by explosive growth in the BRIC (Brazil, Russia, India, China) countries," says Sean Broderick, resource stocks editor for Money & Markets.

"My top conservative pick to play the broad commodities bull market is the broad-based exchange-traded PowerShares DB Commodity Index Tracking Fund (NYSE: DBC).

"As an ETF, it is like a mutual fund. However, ETFs usually have lower costs than a mutual fund and you can buy and sell an ETF throughout the day, whereas a mutual fund trades once a day.

The PowerShares DB Commodity Index Tracking Fund has a long name but a simple idea -- the fund invests in commodities: crude oil, heating oil, aluminum, gold, corn and wheat. DBC invests in that basket of commodities by purchasing futures contracts. It rebalances annually to 35% crude, 20% heating oil, and 10% to 12.5% of the other four."

Symbol Lookup
IndexesChangePrice
DJIA-17.2410,433.71
NASDAQ-6.832,169.18
S&P 500-0.591,105.65

Last updated: November 25, 2009: 02:58 AM

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