Continue reading Schwab's bad advice about sector investing

Schwab's bad advice about sector investing originally appeared on BloggingStocks on Wed, 03 Jun 2009 15:20:00 EST. Please see our terms for use of feeds.

During the last eight months, with the market bouncing up and down, there have been times when I did not look too smart buying stocks through it all.

Of course I looked the most foolish on March 9, when I wrote the prophetic Nostradamus was a punk! Have we reached bottom? Some folks were commenting that they were staying in cash until the DJIA dropped to 5,000. Today that looks highly improbable, even if the market gives something back over the next few months.

There must be some readers that also have contrarian instincts and made good money this year. This is a reminder to take something off the table. It's time to book some gains. We all did great in 1999 and 2000 only to give it all back and then some. Don't let that happen to you again!

Continue reading Serious Money: ETF that's better than cash

Serious Money: ETF that's better than cash originally appeared on BloggingStocks on Wed, 20 May 2009 15:20:00 EST. Please see our terms for use of feeds.

With President Obama at the helm it seems as though the light might be shining on the economic horizon. If you're of this opinion then now might be a good time to invest some of your hard earned savings in the banking industry.

But what banking firm do you decide to go with? Rather than selecting just one bank, how about hedging your bets by investing in many diverse banks from all over the country? An exchange traded fund (ETF) is a great way to do just that. By investing in the ETF PowerShares Dynamic Banking (PJB) you get shares of several different banks. PJB seeks to replicate the Dynamic Banking Intellidex index and invests at least 90% of assets in common stocks that comprise that index. Among their holdings in the PJB ETF are BancFirst Corporation(NASDAQ GS: BANF) BancFirst's holding company, Capital Federal Financial(NASDAQ GS: CFFN) the holding company for Capitol Federal Savings Bank, and Northern Trust Corporation(NASDAQ GS: NTRS) Northern Trust Company's holding company.

Continue reading ETF Portfolios: Is it time to invest in banks? Then buy PJB.

ETF Portfolios: Is it time to invest in banks? Then buy PJB. originally appeared on BloggingStocks on Mon, 04 May 2009 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Today's technical outlook: Markets desperately seeking support

Today's technical outlook: Markets desperately seeking support originally appeared on BloggingStocks on Fri, 06 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

Continue reading ETF Stocks: Can you beat SPY? How to benchmark your performance

ETF Stocks: Can you beat SPY? How to benchmark your performance originally appeared on BloggingStocks on Fri, 13 Feb 2009 16:40:00 EST. Please see our terms for use of feeds.

The old adage to new investors has always been to invest in something that you use or believe in. Right now, you're probably reading this online and there's a good chance you got online through a broadband connection, so why not invest in the companies that continue to supply equipment for the growth of the broadband revolution?

The exchange-traded fund (ETF) Broadband HOLDRs (NYSE: BDH) is a great way to invest in the broadband industry without having to select one company. BDH consists of about 22 companies that develop, manufacture and market products and services that facilitate the transmission of data, video and voice more quickly and efficiently than traditional telephone line communications.

Continue reading ETF Stocks: Use BDH for a play on broadband technologies

ETF Stocks: Use BDH for a play on broadband technologies originally appeared on BloggingStocks on Fri, 13 Feb 2009 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Chip sales fall 22% in December

Chip sales fall 22% in December originally appeared on BloggingStocks on Wed, 11 Feb 2009 08:45:00 EST. Please see our terms for use of feeds.

One of the buzzwords that is currently in vogue in the investment community is biotechnology. This is a broad-based field that covers technological applications in any biological system, meaning humans, animals, agriculture, and medicines. This is a booming science and the investment field offers many opportunities for wealth accumulation.

If you don't want to spend countless hours trying to understand not just financials, but scientific and technical jargon that biotech companies harbor, exchange-traded funds (ETFs) may be the better choice for investing in the biotechnology industry.

An ETF is similar to buying a share of a company, but instead of getting one particular company you're investing in a bundle of companies within a particular field or specialty. It's a great way to invest in something you believe in while still hedging your bets and having a bit of diversity.

Continue reading A defensive investment: Biotechnology ETFs

A defensive investment: Biotechnology ETFs originally appeared on BloggingStocks on Sat, 07 Feb 2009 13:10:00 EST. Please see our terms for use of feeds.

Continue reading ETF Funds: Hedge your home heating bills with UNG

ETF Funds: Hedge your home heating bills with UNG originally appeared on BloggingStocks on Thu, 29 Jan 2009 18:00:00 EST. Please see our terms for use of feeds.

The major indices continue to test their November lows, with the Dow making an intraday penetration that -- had it stuck -- would no doubt have led to an immediate test of the bear market lows.

But, again, the markets held above the fragile support line at Dow 8,000 and the S&P 500's support zone at 800-820.

How long this support will hold is anybody's guess, but Friday's reversal from a crushing opening was impressive despite its lack of convincing volume.

With all of our internal indicators grossly oversold and sentiment clearly bearish, the market should rally from its current support.

For that reason, traders should grab their favorite long 2x exchange-traded fund (ETF) and, despite the risk, go for a trade that could result in a profit from a 400- to 500-point advance in the Dow.

2x ETFs target two-times the daily return of the underlying index. My favorite trade for today is the Ultra QQQ ProShares (NYSE: QLD).

However, the market does not always accommodate our most ardent wish, so despite the likelihood of a rally, traders must set stop-loss orders under last week's lows or take on an enormous risk of loss.

A daily close under the intraday lows of last week would most certainly lead to a test of the November low and could even lead to a general market rout.

So, be careful out there and only risk what you can afford to lose.

Sam Collins is a contributor to OptionsZone.com.

Today's technical outlook: Market may rally big originally appeared on BloggingStocks on Mon, 26 Jan 2009 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Go Green with Low Cost ETF Funds: EVX

Go Green with Low Cost ETF Funds: EVX originally appeared on BloggingStocks on Fri, 23 Jan 2009 14:45:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"The great stock pick for 2009 is not a stock -- it is a high risk, extremely volatile ETF," says short-selling expert Michael Shulman, whose work is designed for sophisticated investors.

In his ChangeWave Shorts advisory, he explains, "The Proshares UltraShort Financials (NYSE: SKF) is an inverse double ETF; in other words it moves twice as much -- and in the opposite direction -- from the Dow Jones Financial Index."

The advisor explains, "When the Dow Jones Financial Index goes down 1%, this ETF goes up 2%. High risk, high reward, very high volatility.

"The range in 2008 was $87-$304. You have been warned -- but please, keep reading, because even if you don't buy this ETF, consider my suggestion a warning not to buy financial stocks in 2009.

Continue reading Top Stock Picks '09: ProShares UltraShort Financials (SKF)

Top Stock Picks '09: ProShares UltraShort Financials (SKF) originally appeared on BloggingStocks on Sun, 11 Jan 2009 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Sell your marginal stocks and upgrade with DIA - an ETF betting on America

Sell your marginal stocks and upgrade with DIA - an ETF betting on America originally appeared on BloggingStocks on Thu, 18 Dec 2008 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Sector ETFs: Build a Strong Foundation with XHB

Sector ETFs: Build a Strong Foundation with XHB originally appeared on BloggingStocks on Mon, 15 Dec 2008 18:50:00 EST. Please see our terms for use of feeds.

Word is that retailers will be having a very cold holiday season this year. In fact, MasterCard has noted that sales of apparel, shoes, and appliances dropped considerably in the first two weeks of November. Consumers are being a little thriftier when it comes to extras as they're worried about unemployment and the recent news of a financial crisis. But no matter what's going on in the economy, there are just things that people need, staple items.

An investment in staples means you're banking on something that people are always going to need and will always purchase, no matter what the economy forecast is. Consumer Staples Select Sector SPDR (NYSE: XLP) is an excellent way to invest in a variety of staples in one single investment purchase. This exchange traded fund (ETF) includes companies from food and drug retailing, beverages, household products and personal products. Items that are clearly essential to daily living.

With a single stock -- XLP you will get shares of such noted companies as the Coca Cola Co. (NYSE: KO), Colgate Palmolive (NYSE: CL), Kraft Foods Inc. (NYSE: KFT), PepsiCo Inc. (NYSE: PEP), Procter & Gamble Co. (NYSE: PG), and Wal-Mart Stores (NYSE: WMT). These are all well-known household names that will continue to be market leaders in any financial environment. If you want to invest in things that people need, XLP is a sound choice.

Continue reading Sector ETF Portfolios: Invest in the Necessities of Life with XLP

Sector ETF Portfolios: Invest in the Necessities of Life with XLP originally appeared on BloggingStocks on Sat, 13 Dec 2008 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Sector ETFs: Energize your portfolio with XLU

Sector ETFs: Energize your portfolio with XLU originally appeared on BloggingStocks on Fri, 05 Dec 2008 16:30:00 EST. Please see our terms for use of feeds.

Continue reading Retail Rally? Open the Door with RTH - A Sector ETF

Retail Rally? Open the Door with RTH - A Sector ETF originally appeared on BloggingStocks on Thu, 04 Dec 2008 14:58:00 EST. Please see our terms for use of feeds.

Q. John, are we at the bottom yet (in equity markets) and what do you see for world markets in the next 12 months?

A. The US economy has substantially worsened in recent months; and the US and global economies are now in the early stages of a significant recession.

In early 2007, the problem was confined to the leveraged loan market as banks revealed their $300 billion in toxic loan commitments to US private equity deals. This was an isolated capital market problem, which had not materially impacted GDP. But in September 2008, the safety of money market funds came into question, seriously frightening individuals into taking cash from their bank accounts, putting all spending on hold and hoarding cash. Since then, GDP has been in serious decline.

Ironically, beginning in March 2008, the Federal Reserve's series of liquidity measures, designed to provide cash to troubled Wall Street institutions, made this situation worse. They sold Treasury bills simultaneously, withdrawing reserves from the banking system, resulting in less than a 1% annual rate of growth in bank reserves and the monetary base in the 12 months leading up to September 2008. Since the September crisis, both reserves and the monetary base have more than doubled, which will eventually solve the problem. But the Fed was very late to the party.

Continue reading Global Q&A: A rocky road, but profits ahead

Global Q&A: A rocky road, but profits ahead originally appeared on BloggingStocks on Thu, 04 Dec 2008 12:55:00 EST. Please see our terms for use of feeds.

Whether it's a recession or an economic boom, one thing doesn't change, the need for energy. And until technology leaps ahead, coal is the largest producer of fuel for the generation of electricity in the world. It's also the most abundant fossil fuel in the United States. Coal is obviously not recession immune as people tighten the reigns on their lives and cut back on electricity consumption, but the shear necessity of electricity makes the coal industry fairly resistant. An investment in an exchange traded fund (ETF) that is centered on the coal industry is a great way to hedge your bets by investing in a pool of successful companies in the coal field.

Market Vectors Coal ETF (NYSE: KOL) seeks to replicate the price and yield performance of the Stowe Coal index, which provides exposure to publicly traded companies worldwide that derive greater than 50% of their revenues from the coal industry. With KOL you'll own shares of some of the most noted coal companies in the world, including Arch Coal Inc. (NYSE: ACI), which specializes in steam and metallurgical coal; CONSOL Energy Inc. (NYSE: CNX), a large provider of fuel for electricity in the United States; Alpha Natural Resources Inc. (NYSE: ANR), another leader in steam and metallurgical coal; and Peabody Energy Corp. (NYSE: BTU), an exploration miner and coal producer worldwide, as well as several other highly rated coal companies across the globe.

Market Vector charges only a 0.65% fee, a fraction what a professional money manager would charge you to analyze research and pick coal mining stocks with this level of global reach. Recently KOL has gone through a typical correction for this commodity sector, but then suffered a greater hit as Asia saw a 20% decline in spot prices for thermal coal. The result? A better deal for those currently willing to dive into coal as an investment. KOL is up 14%, so maybe there's some light at the end of the mine.

Continue reading Commodity ETF investing: Own 42 coal mining companies with KOL

Commodity ETF investing: Own 42 coal mining companies with KOL originally appeared on BloggingStocks on Sat, 22 Nov 2008 13:10:00 EST. Please see our terms for use of feeds.

Continue reading Hedge Inflation with two gold ETF ideas: GDX and GLD

Hedge Inflation with two gold ETF ideas: GDX and GLD originally appeared on BloggingStocks on Wed, 19 Nov 2008 17:15:00 EST. Please see our terms for use of feeds.