ETF Expert

On the one hand, it is easy to explain the increasing risk averse behavior of stock market investors. High oil prices are killing ground/air transportation. Bad loans are cremating financial institutions. And more recently, "invincible" tech has fallen precipitously on the notion that "all of the other guys" may not be able to upgrade their technology systems.

And yet, there doesn’t seem to be a willingness to throw in the towel completely. Perhaps investors are stubborn, stupid or both. Perhaps they don’t see how dreadful the "credit crisis" is worldwide. Or perhaps we’ll get by with a little help from our Fed.

Of course, bear market doom sayers point to European markets hitting 2-month lows. Bull market cheerleaders point to European markets still garnering gains of 12% on the year. Doom-n-gloomers note that the S&P 500 is a mere 3 percentage points higher than the lows set on August 15. Stock enthusiasts express confidence that more rate cuts will help the S&P finish 2007 strong.

Suffice to say, stocks are at a crossroads. Neither side wishes to give in… not the bulls or the bears.

Nevertheless, there’s one investment that’s outperforming the rest. The iShares Global Consumer Staples Fund (KXI) has outpaced the S&P 500 (SPY) and the S&P Europe 350 (IEV) over 1 year. Global Consumer Staples (KXI) is even more impressive over the turbulence of the last 6 months.

   
That’s correct. Toothpaste, toilet paper and tobacco have been smoking. (Pardon the pun.)

Fresh 52-week highs in this environment? How can one resist cleaning up with a bit of Global Staples (KXI) in the hamper?

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.