This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

While many have jumped on the gold bandwagon, Jim Lowell is taking the opposite approach, selected a bearish gold fund as a top pick for the coming year.

The editor of The ETF Trader looks to Proshares UltraShort Gold (GLL); should gold bullion decline in value, this 2X leveraged fund would be expected to rise twice as much.

Continue reading Top Picks for 2010: Proshares UltraShort Gold (GLL)

Top Picks for 2010: Proshares UltraShort Gold (GLL) originally appeared on BloggingStocks on Sat, 09 Jan 2010 09:00:00 EST. Please see our terms for use of feeds.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

Given his view that market risk is rising, Ken Kam has chosen a top pick for 2010 that is not necessarily selected in the hope of gains; rather, he chooses a "short" position for its role in hedging one's portfolio.

The Marketocracy analyst looks to the ProShares UltraShort Russell 2000 ETF (TWM), which seeks twice the inverse performance of the Russell 2000 index. For example, if the Russell 2000 index falls by 1%, this ETF would expect to rise 2%.

Continue reading Top Picks for 2010: UltraShort Russell (TWM)

Top Picks for 2010: UltraShort Russell (TWM) originally appeared on BloggingStocks on Wed, 30 Dec 2009 08:00:00 EST. Please see our terms for use of feeds.

For 26 years, at the start of each year, I've conducted an annual survey of newsletter advisors, asking for their favorite investment for the coming year. Until 2 or 3 years ago, their responses were almost always individual stocks and an occasional mutual fund.

Increasingly in recent years, many advisors have found their favorite positions to be exchange traded funds, whereby they can invest in a sector, region, or strategy without the inherent risk of an individual company. Indeed, in this year survey of 75 advisors, fully 1 out of 5 advisors chose ETFs.

ETFs were a popular choice for those seeking global exposure. Mark Salzinger, editor of The Investor's ETF Report, selects the S&P China SPDR (NYSE: GXC) as his favored play. (Read the full article here.)

Nick Vardy sees opportunity in China, but also sees potential in a broader range of emerging global markets. The editor of Global Stock Investor looks to the iShares MSCI Emerging Markets (ASE: EEM) as his top idea for 2009. (Read the full article here.)

Carl Delfeld of Chartwell Advisors also wants to own a basket of emerging markets stocks, but only small caps. His pick is the WisdomTree Emerging Market Small Cap (NYSE: DGS). (Read the full article here.)

Jim Lowell takes a similar view -- chosing global small caps -- but adds a further restriction. His recommended ETF limits its holdings to dividend paying stocks. Hence, the top pick in his Marketwatch ETF Trader is the WisdomTree International Small Cap Dividend (NYSE: DLS). (Read the full article here.)

ETFs an also be used to play a specific sector, such as consumer stocks. Leonard Goodall sees upside in companies making the "basics" such as soda, toothpaste and soap. In his No-Load Fund Investor, his top way to play this trend is the Consumer Staples ETF (NYSE: XLP). (Read the full article here.)

In addition to using ETFs to invest in a region, country or sector, these vehicles can also be used to invest in a certain strategy. For example, Tom Bishop, editor of BI Research, chooses the PowerShares Value Line Industry Rotation ETF (NYSE: PYH), which rotates its holdings to only include stocks that earn Value Line's top investment rating. (Read the full article here.)

Doug Fabian, editor of Successful Investing, looks to PowerShares DB Crude (NYSE: DXO), an exchange-traded note. While this leveraged position goes up twice as much as the underlying index when it rises, it also goes down twice as much when the index declines. (Read the full article here.)

Paul Tracy, editor of StreetAuthority Market Advisor takes a similar approach, but rather than speculate on the price of oil and gas, he looks to ProShares Ultra Oil & Gas (NYSE: DIG), which invests in a basket of stocks operating within these sectors. (Read the full article here.)

The most popular choice in this year's survey was ETFs investing in gold. Both Vivian Lewis, editor of Global Investing, recommends the SPDR Gold Trust (NYSE: GLD); it's price reflects 1/10th of an ounce of gold. (Read the full article here.)

Mary Anne Aden, editor of The Aden Forecast, also selects the SPDR Gold Trust (NYSE: GLD) as her top investment ideas for the coming year. (Read the full article here.)

Mark Leibovit, market timer and editor of VRTrader, holds a long-term bullish view on gold and opts for upside leverage. His top pick is the PowerShares DB Gold Double Long (NYSE: DGP). (Read the full article here.)

Pamela Aden, co-editor for The Aden Forecast, also sees upside potential in gold but prefers to invest in the companies that mine for the precious metal. Her top pick is the Market Vectors Gold Miners (NYSE: GDX). (Read the full article here.)

For greater leverage (and higher risk), Steve Rawls, editor of Tipping Point Stocks, suggests the ProShares Ultra Gold (NYSE: UGL), which moves twice the rate of the underlying London gold price. (Read the full article here.)

Mike Larson, editor of Money & Markets, sees downside risk in financial stocks. But rather than try and select which stock might fall, he opts for a basket of financial players with the ProShares Trust Short Financials (NYSE: SEF). As an "inverse" fund, this moves in the opposite direction of the underlying index. (Read the full article here.)

And for even higher risk and volatility, Michael Shulman, editor of ChangeWave Shorts, looks to the ProShares UltraShort Financials (NYSE: SKF), an inverse double fund. Not only does it move in the opposite direction of financial stocks, but it moves twice as much. (Read the full article here.)

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

15 favorite ETFs for 2009 originally appeared on BloggingStocks on Fri, 16 Jan 2009 14:00:00 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.

For those comfortable with a short position, Mike Larson looks to ProShares Trust Short Financials (NYSE: SEF) as his top 2009 pick. In Money and Markets, he looks at the inverse ETF.

"ProShares Trust Short Financials is an inverse exchange-traded fund. The ETF is designed to rise in value when the underlying index it references, the Dow Jones U.S. Financials Index, declines.

"As of September 30, the Dow index was weighted 42.5% in banks. General financial firms were the next highest weighting at 23.4%, followed by Real Estate Investment Trusts at 13.4%, non-life insurers at 13.1%, and life insurers at 6.9%.

"The top companies in the index were JPMorgan Chase (8.1%), Bank of America (8.1%), and Wells Fargo (5.9%).

Continue reading Top Stock Picks '09: ProShares Short Financials (SEF)

Top Stock Picks '09: ProShares Short Financials (SEF) originally appeared on BloggingStocks on Fri, 09 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

"We see the growing risk of a watershed decline very soon," warns Martin Weiss, editor of The Safe Money Report. For those looking to speculate on a downside move, or to hedge an otherwise long portfolio, the advisor looks at several inverse ETFs which benefit from a drop in stocks.

"With a new, potentially bigger wave of the credit crisis sweeping Wall Street, and with the latest energy price surge gutting corporate profits, the U.S. stock market is poised to suffer a far sharper and deeper decline.

"Our near-term forecast: A rapid fall - perhaps including a crash - to the market's 2003 lows: 7200 on the Dow, 770 in the S&P 500 Index, and 1100 in the Nasdaq Composite Index.

"That's too much, too fast for you to just 'ride it out' as many on Wall Street are recommending. oreover, it's too soon to say if those levels will be the final bottom; the market could fall even further.

"With the exception of of selected resource companies, we recommend unloading nearly all stocks. In addition, we suggest buying inverse ETFs, which rise in value when the market falls. Here are our highest priority recommendations:

UltraShort Real Estate ProShares (ASE: SRS)
UltraShort Technology ProShares (ASE: REW)
Short Dow 30 ProShares (ASE: DOG)
UltraShort Consumer Services ProShares (ASE: SCC).

"These four are inverse ETFs - exchange-traded funds that you can buy and sell just like any other ETF or stock, but with one critical difference: They go up in value when the market index they're tied to goes down. And we think they're ideal for this situation."

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

Inverse ETFs: Four ways to bet on a market decline originally appeared on BloggingStocks on Mon, 28 Jul 2008 10:10:00 EST. Please see our terms for use of feeds.