Investors are always looking for the next 'big thing.' In the late 90s, technology was the opportunity of the decade. From 1995 to 2000, the Nasdaq soared from below 800 to above 5,000. From 2002 to 2007 the S&P 500 (SPY) and Dow Jones (DIA) nearly doubled. Real estate prices in some areas more than quadrupled, while broad based real estate ETFs like the SPDR Dow Jones REIT ETF (RWR) and iShares Dow Jones US Real Estate ETF (IYR) nearly tripled from 2000 to 2007
If you missed out on any of the above mega themes, don't sweat it. The Nasdaq (QQQQ) has since plummeted, as did the Dow and S&P. Real Estate ETFs have given up all of this century's gains.
Where is the next bull market?
An old Wall Street adage says that there is always a bull market somewhere. As it turns out, this is yet another piece of Wall Street wisdom that has been proven wrong. In 2008, the only bull market to be found was in short ETFs. The key question is whether investors should be looking for the next new bull market, or get used to a prolonged bear market while figuring out how to prosper along the way.
Full Story: http://finance.yahoo.com/news/How-to-Profit-from-New-etfguide-15328779.html?.v=1 How to Profit from New Investment Mega Trends
Investors are always looking for the next 'big thing.' In the late 90s, technology was the opportunity of the decade. From 1995 to 2000, the Nasdaq soared from below 800 to above 5,000. From 2002 to 2007 the S&P 500 (SPY) and Dow Jones (DIA) nearly doubled. Real estate prices in some areas more than quadrupled, while broad based real estate ETFs like the SPDR Dow Jones REIT ETF (RWR) and iShares Dow Jones US Real Estate ETF (IYR) nearly tripled from 2000 to 2007
If you missed out on any of the above mega themes, don't sweat it. The Nasdaq (QQQQ) has since plummeted, as did the Dow and S&P. Real Estate ETFs have given up all of this century's gains.
Where is the next bull market?
An old Wall Street adage says that there is always a bull market somewhere. As it turns out, this is yet another piece of Wall Street wisdom that has been proven wrong. In 2008, the only bull market to be found was in short ETFs. The key question is whether investors should be looking for the next new bull market, or get used to a prolonged bear market while figuring out how to prosper along the way.
Full Story: http://finance.yahoo.com/news/How-to-Profit-from-New-etfguide-15328779.html?.v=1 Reports that leveraged ETFs will disrupt market are overblown
Leveraged exchange traded funds are clearly not for everyone, especially if you are of the buy-and-hold mind-set. But claims that these feisty newcomers threaten to ignite extreme market volatility don't quite add up.
This particular brand of ETF is designed to give short-term traders leveraged long or short exposure to a variety of indexes. Financials weak, AIG chief throws in the towel
U.S. financial stocks were little changed on Friday, with shares of American International Group the biggest loser after the company said its chief executive will resign.
The Financial Select Sector SPDR (XLF) , which tracks the financial stocks in the S&P 500, slipped 0.2%.
American International (AIG) said late Thursday that Chief Executive and Chairman Ed Liddy will leave after replacements are found. AIG also said it plans to split the roles of chairman and chief executive at the giant government-owned insurer.
Full Story: http://www.marketwatch.com/story/financials-weak-aig-chief-throws-in-the-towel?siteid=yhoof Can Nanotechnology ETF Make A Comeback For Investors?
How long has it been since nanotechnology was on the tip of everyone’s tongue as the next great speculative investment frontier? It seems like ancient history. But we have seen news from Altair Nanotechnologies Inc. (NASDAQ: ALTI), IBM (NYSE: IBM), Harris & Harris Company, Inc. (NASDAQ: TINY), and Nanosphere, Inc. (NASDAQ: NSPH) this week. We have even seen a bit of a move in the PowerShares Lux Nanotech (NYSE: PXN) ETF that tracks nanotech this week.
This week was actually more nanotech-related news than we have for some time even if there is still no clear direction on which way the political environment will treat nanotech in the months and years ahead....... ETF Death Toll Climbs To 113: On Pace To Set Another Record For Closures In 2009
May 18 was the last trading day for 19 ETFs from PowerShares. If you did not sell your shares by the deadline, you now get to experience the ETF liquidation process first-hand Everyone Is Talking About The Fear Of Inflation!
As inflation worries still nag at investors, ETF issuers continue to offer a variety of methods to invest in gold. The latest issue of Scottsdale Futures and Options Limited’s PowerShares Momentum Tracker examines Momentum Tracker DB Gold (DGL), an ETF that aims to give small investors a sophisticated exposure to the price of gold.
“While gold has inspired both issuers and investors alike in recent months,” noted publisher Dan Rillon, “results have been mixed on our Commodities Momentum Table.” Momentum Tracker publishes a weekly ranking of Momentum Tracker ETFs, where position on the table is determined by a momentum formula that utilizes relative strength indicators. John Paulson Betting Big On Gold ETF
As we head into Memorial Day weekend, we are also closing the books on one of my favorite investing holidays -- the time period for most money managers to file their 13-F with the SEC is pretty much coming to an end. These filings are an incredibly valuable tool, providing insight into the thoughts and actions of some of the best investors on the planet. I have written about the moves by some of my favorite investors recently and I want to finish out the week by examining a few others.
John Paulson has very quickly become something of an investment legend. After a 500%-plus return in 2007 shorting mortgage-backed securities, he followed it up by earning better than 35% in the difficult 2008 period. In the first quarter of 2009, he appears to be betting big on gold. Active ETFs Prove Slow To Gain Assets
Actively managed exchange-traded funds haven't attracted assets as quickly as some have expected, but that hasn't slowed the race to expand ETFs beyond their index-tracking roots.
Most ETFs defined as actively managed are still quantitative and formulaic. Still, the first to qualify as actively managed in the traditional sense -- using analysis and known stock pickers -- have already come to market, and more are on the way.
ETFs are baskets of securities that trade like individual stocks. Their structures generally offer cost and tax advantages over conventional mutual funds as well as more transparency because they disclose their holdings daily. Hyperinflation? ETF Options
Methods to protect or hedge oneself against the upcoming hyperinflationary phase
Solution 1
As we stated last week one of the simplest and easiest methods would be to open an option for those who cannot or do not want to travel will to invest via currency ETF's
FXY= Japanese Yen FXF= Swiss Franc, FXE= Euro FXC= Canadian Dollar
FXA= Australian Dollar FXS= Swedish Krona
Finally, the last option would be to open a Pay Pal account, fund it and then activate the currency option feature. Right now they offer the Euro, Canadian dollar, Swiss Franc and British Pound.
Solution 2 Successful Financial Markets Day Trading ETFs
Judging from the contents of an increasing number of emails more and more investors are choosing to "actively" trade the market rather than "buy and hold." In the main, this is due to the fact that in a bear market the latter strategy creates losses that are difficult to accept long term. However another reason is that with limited business opportunity available investors are seeking "income" rather than capital gain from their investments.
Accordingly I set out below some parameters to help these new "traders" avoid the worse pitfalls and hopefully guide them towards the mindset required for long term success. Tactical Investing: Pick ETFs or Stocks?
Before sifting through the investment universe for the most appropriate tool for the job, investors should be able to answer one central question: What is my investment thesis? For long-term core positions, there's a good chance that investors can get the exposure they seek through exchange-traded funds. However, when thinking about shorter-term tactical bets (or satellite positions), the line gets blurred. Usually, the decision boils down to which ETF is the best tool for the job. At other times, the right tool might not be an ETF at all but, rather, a stock. Regardless, the key is to match the thesis with the investment vehicle that most closely correlates with your conclusion. 3 Strategies to Make Your Life Less Taxing
Use the Right Financial Products
Most broad-based index ETFs are very tax-efficient, meaning they distribute little to nothing in capital gains. This is one of the reasons index ETFs should be the foundation of most investment portfolios.
Morningstar recently conducted a survey on capital gains distributions for stock ETFs across 27 broad-based indexes. The study showed only two ETFs made capital gain distributions over the past 5-years while just one ETF made distributions over the past 10-years. Popular funds like the Dow DIAMONDS (NYSEArca: DIA), iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM), iShares MSCI EAFE Index Fund (NYSEArca: EFA), Vanguard Total Stock Market ETF (NYSEArca: VTI), and the SPDRs S&P 500 (NYSEArca: SPY) continue to lead the pack in low tax distributions.
Full Story: http://www.etfguide.com/commentary/548/3-Strategies-to-Make-Your-Life-Less-Taxing/ Gold hits fresh 2-month high as dollar wilts (GLD)
Gold climbed to a fresh two-month high of $957.50 an ounce in Europe on Friday, extending the previous session's near 2 percent gains, as investors bought the metal as a hedge against dollar weakness.
Silver prices posted the biggest gains among precious metals, however, climbing to a nine-month peak of $14.79 as investors turned to the metal as a cheaper alternative to gold.
Spot gold was bid at $956.95 an ounce at 1207 GMT, against $953.40 an ounce late in New York on Thursday. U.S. gold futures for June delivery on the COMEX division of the New York Mercantile Exchange rose $6.20 to $957.40 an ounce.
Simon Weeks, director of precious metals at the Bank of Nova Scotia, said the majority of gold's gains were dollar-related, with investors "buying hard assets as opposed to hard currency".
"Physical (buying) has been okay, but I expect a big increase in the open interest on the long side on the COMEX," he added.
The dollar continued its slide on Friday, reaching a five month trough against a basket of currencies as fears over U.S. sovereign ratings accelerated a drive away from the unit.
Ratings agency Moody's Investor Services said on Thursday it was comfortable with its U.S. rating but that it was not guaranteed forever, while Standard & Poor's cut its outlook on Great Britain to negative from stable.
Fears over the economic outlook and the financial system fuelling interest in gold as a haven from risk.
Full Story: http://www.guardian.co.uk/business/feedarticle/8520758 The ETF Reflation Trade Portfolio
We had technological difficulties in Maine, however, and couldn't get the satellite hookup going in time.
Even so, I thought it might be interesting to share the portfolio we were going to discuss. It brings up both an important as well as an interesting topic.
According to Wikipedia, "Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes. It is the opposite of disinflation. It can refer to an economic policy whereby a government uses fiscal or monetary stimulus in order to expand a country's output."
Reflation is not necessarily good or bad, of course. The response from the Fed, the Treasury and Congress over the past few quarters probably saved us from a more crushing recession/potential depression. BetaPro Proposes Change Of Underlying Index For Four ETFs (Canada)
BetaPro Management Inc. will hold special meetings of unitholders on July 24 to consider changing the underlying index of four exchange traded funds, the company said Thursday.
“The proposed changes are in response to market demand and should in both cases significantly improve the market liquidity of these ETFs,” says Howard Atkinson, president of Toronto-based BetaPro.
At the special meetings, unitholders of Horizons BetaPro DJ-AIG Agricultural Grains Bull Plus ETF and Horizons BetaPro DJ-AIG Agricultural Grains Bear Plus ETF will be asked to consider revising the investment objectives of the two ETFs by replacing the Dow Jones-UBS grains subindex with the S&P Agribusiness North America index.
The S&P Agribusiness North America index is designed to provide liquid exposure to the upstream and downstream supply chain of the agribusiness sector. The index includes some of the largest publicly traded agribusiness companies trading on the U.S and Canadian exchanges. By moving to an equity based agricultural index, BetaPro believes the HBP Agri ETFs may benefit from improved market liquidity because public trading of the equity issuers in the index and exchange will close at the same time.
Full Story: http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=49443&cat=146&IdSection=146&PageMem=&nbNews=&IdPub= 
