ETF Expert

1. Are some sectors or industries holding up better than others? Arthur Hill at ETF Investment Outlook says that the utilities sector has served its traditional defensive purpose. Moreover, there are several industries that have shown relative strength, including Aerospace, Broker-Dealers and Oil/Gas Exploration and Production.

I’ve marveled at the upside benefits and downside protection of Aerospace/Defense for quite some time. Take a look at "Boeing’s Flat Tire Doesn’t Slow Aerospace/Defense" and/or "There’s No Need to Defend Aerospace and Defense."

2. If you are feeling like you are drowning in this market, water may be the last thing on your mind. However, Asif Suria of SinLetter.com explains why clean water for worldwide consumption may be the biggest trend of the century.

Both Asif and I agree that the best way to invest in the potential megatrend is through the Powershares Water Resources Fund (PHO), an exchange-traded fund that invests in the common stocks of the water industry. Learn more with "Invest in Water."

3. How critical is the Japanese yen in understanding the current marketplace? Tom Lydon of ETF Trends shows the near perfect negative correlation between the CurrencyShares Yen Trust (FXY) and the S&P 500 SPDR Trust (SPY).

What does it mean? Simply stated, the "yen carry trade" is very effective at letting us know where the market may or may not be heading. (Note: I talked about the yen’s effect during the first round of the global credit crisis in July/August. You may want to get a primer here.)

Disclosure Statement: ETF Expert is a web log ("blog") that makes the world of ETFs easier to understand. Pacific Park Financial, Inc., a Registered Investment Advisor with the SEC, may hold positions in the ETFs, mutual funds and/or index funds mentioned above. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.