With the flow of money out of “old economy” and “grandpa stocks”continuing, using corrections to upgrade our asset allocation is an essential idea. Already, we have raised cash on anticipation of a summer correction. I anticipate that the summer correction will be short and shallow, lasting no more than a few months and probably not correcting more than 10-20%.
Exchange Traded Funds
Exchange Traded Funds are all the rage among financial planners. The problem for individual investors is that the fees layer up quickly.
A financial advisor might charge about 1% to recommend money managers to clients. The money managers often charge another 1%. This is on top of the ETF fees. The combined 2% in “service” fees is a HUGE barrier to overcome.
Most people can manage an ETF portfolio very efficiently without having to overcome the layers of fees within the financial industry. Our solution is the ETF Tactical Trading service.
Fundamental Trends offers two global strategies: the Global Trends portfolio for long-term growth investors and the Global Asset Allocation portfolio for moderate risk balanced investors.
Either portfolio can be used as a stand alone strategy or as the core to build a stock portfolio around.
The Fundamental Trends ETF strategies manage for risk and search globally for opportunity. We seek to be positioned in growth assets, sectors and regions when they are value priced and rising in price.
We screen ETFs based upon several key criteria: expenses, valuation, internal holdings, methodology, growth outlook and other factors.
Our analysis of the internal fund holdings is unique and provides us a significant edge in building our strategies. See this Seeking Alpha article for an example of how breakdown funds:
For complete access to our “ETF File” reports, portfolios, trade alerts and other analysis, sign up for ETF Tactical Investing today.
A Note To Beginning Investors
ETFs are a wonderful place to start investing. However, keep it simple when your portfolio is small in order to avoid unnecessary trading costs.
There is an overriding trend in the economy that is long-term. The shift from labor and capital intensive “old economy” companies towards scalable and smart “new economy” companies. While we will always need the “old economy,” many of those stocks will not be good investments due to thin margins.
I have covered a lot of the shift to the new economy here, on MarketWatch and on Seeking Alpha. If you are a beginning investor, there is one fund that is easy to begin with. Read this ETF File from Seeking Alpha:
Once you are to the point where you’d like explore other opportunities, please do subscribe. Until then, the Fundamental Trends 401k Alert service will makes sense for you as it provides asset allocation and broad information that will help you as you begin building your financial freedom.
With another pause in the ramping up of the trade war, markets were feeling bullish Monday morning. However, that bullishness has been fading as the day went on. Maybe markets realize there was no real trade progress made. Maybe the markets are focused on other things.
(Open to the public to demonstrate the regular notes we put out on our holdings. Here we were buyers of calls on USO the last week of December 2019 and are taking profits now as a form of risk management. The “new” Fundamental Trends is in beta and making adjustments based on member feedback.) They say we should learn from our mistakes. This is one thing that “they” have right. […]
Money flows are observable and somewhat predictable for markets. In December, I discussed how money flow was negatively impacting the stock market. Here is that article: 4 Pieces of Missing Money Crushing Markets In short, outflows from liquidating hedge funds, tax-loss selling, a Fed that had ramped up QT to $50 billion a month, virtually no foreign investment (see China’s 90% plus fall off) and the permanent dribble out of […]
Summary Scaling into or out of positions when changing asset allocations eliminates the need to be perfect on trades. If you scaled out of equity heavy asset allocation from late July to late September, then scaled back in from late October to late December, you’ll be fine. Panic selling at the end of a correction turns temporary losses into permanent losses. I preach scaling into and out of positions and […]
Summary The API reported an inventory build this week, however, last week they had a huge draw. The EIA last week had a small draw and reports at 10:30AM Wednesday. It is very possible that the API numbers are fudged week to week due to when they account, so, we could see EIA with a draw. The Fed will likely be dovish tomorrow and might even surprise with no rate […]
Summary Traders trade, that’s what they do, don’t listen to their stories though. Oil is at the bottom of it’s new range, it’s an easy buy once again. The intermediate bias in oil is bullish and so is the short-term. Buy oil ETFs as futures swing back to backwardation from contango. Traders, from time to time, give us slow handed folks a wonderful opportunity. The traders will beat down or […]
Summary To protect the integrity of our picks, the focus ETFs will be found in an article within the website each month. These are the highest conviction ETFs to add to asset allocations in November 2018. Look to buy around the 200-day moving averages and when RSI falls below 30. Use the “bottom fishing” prices for second entries on any ETF that violates the 200-day moving average. Scale in using […]
Summary The PowerShares QQQ (QQQ) which tracks the Nasdaq 100 has returned the best returns among diversified ETFs over multiple time periods. QQQ primarily tracks “new economy” stocks while the S&P 500 ETFs also track old economy stocks. The current decline has reached a first support level and a small position in QQQ for those without can be taken now. This idea is specifically for investors with small positions or […]
Summary China is still an undeniably attractive place to have some investment exposure even if they do not always play nice. I have a hard time buying individual stocks because of trust issues. The KraneShares CSI China Internet ETF appears to be the best ETF for buying into Chinese tech growth. I am buying a starter position in the fund today. Long-term, we need some China exposure. It is one […]