How To Use ETFs To Profit From The Bubble Of All Bubbles
James Altucher, managing partner of Formula Capital, says we are setting the stage for another bubble. James notes that the stimulus has barely hit yet (less than 10% spent) and the economy is probably already stabilizing. He poses the question, “What happens in a stable economy with another $700 billion in stimulus still scheduled to rain down on it?” He sees the makings of a new bubble (3.0) the “bubble of all bubbles.”
James writes in the WSJ this morning:
“It may end badly, but if you are a financial adviser the key is to get in front of it fast and early. Where will the bubble appear? We don’t know. It’s like a game of musical chairs. It can sit down anywhere. But my guess: non-U.S. currencies. Green companies of any sort (thanks to the specific green provisions of the Obama plan, plus the fact that the world has probably passed its peak oil point); and biotech (thanks to an aging world population obsessed with living forever).”
The Euro’s Demise Has Been Set in Motion: Are you protected?
"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."
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James gives his recommendations on how to capitalise on the impending bubble of all bubbles. James states, “I’d stick with exchange-traded funds for these industries. I like the PowerShares WilderHill Clean Energy fund (PBW), as well as the First Trust Nasdaq Clean Edge Green Energy fund (QCLN) (Wow, they got “Clean”, “Green” and “Energy” in there). For biotech, go with Biotech HOLDRs (BBH), and SPDR S&P Biotech ETF (XBI) to get the full survey of biotech, large-cap and small.”
For James’ full story click: HERE
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