Is it the never-ending, “New Normal” correction? Or is it the beginning of the bear’s salmon dinner?
Ironically, the financial media have decided that there are only two choices — a “new normal” or a bear market. There’s no room for¬†bullishness in the hot August heat.
Trailing P/E ratios, forward P/E ratios… does it even matter how low they are?¬†Not really.¬†When doom-n-gloom takes over, stocks can get even cheaper. Much cheaper!
Admittedly, it’s not easy for folks to maintain a shred of optimism. Many believed that¬†financial stocks were incredible bargains… and yet financials have lost money over the last year:
|Year-Over-Year Returns For Popular Financial ETFs||¬†||¬†|
|Vanguard Financials (VFH)||¬†||¬†||¬†||-1.74%|
|SPDR KBW Bank (KBE)||¬†||¬†||¬†||-4.58%|
|SPDR Select Financials (XLF)||¬†||¬†||¬†||-4.79%|
Other investors had been taken in by the prospect of world demand for oil and gas.¬†Yet energy companies have year-over-year losses as well:
|Year-Over-Year Returns For Popular Energy ETFs||¬†||¬†|
|iShares DJ Energy (IYE)||¬†||¬†||¬†||-1.00%|
|iShares S&P Global Energy (IXC)||¬†||¬†||-3.59%|
|Oil Services HOLDRS (OIH)||¬†||¬†||¬†||-7.32%|
So what can you do about it? ¬†I think you can recognize that there are a number of fairly valued ETFs across a variety of asset classes. Many of them boast¬†technical uptrends; others offer stellar income streams.
While I never advocate buy-n-hold… while I always believe in implementing a sell discipline… here are 7 ETFs that are¬†working well for my clients. Each is within striking distance of a 52-week high:
|7 Non-Treasury ETFs Near A 52-Week High||¬†||¬†|
|¬†||¬†||¬†||¬†||¬†||¬†||Approx % Below|
|iShares MSCI Malaysia (EWM)||¬†||¬†||¬†||0.00%|
|iShares MSCI Chile (ECH)||¬†||¬†||¬†||-0.28%|
|iShares S&P Preferred Stock (PFF)||¬†||¬†||-0.42%|
|iShares High Yield Corporate Bond (HYG)||¬†||¬†||-0.87%|
|WisdomTree Small Cap Emerging Market (DGS)||¬†||-1.80%|
|iShares Global Telecom (IXP)||¬†||¬†||¬†||-3.29%|
|JP Morgan Alerian MLP Index (AMJ)||¬†||¬†||-3.38%|
Disclosure Statement: ETF Expert¬†is a web log (‚ÄĚblog‚ÄĚ) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.