ETF Expert

The S&P 500 pulled back 2.5% from a multi-year high of 1370. Oil has sold off more than 10% from its peak. SPDR Gold Shares (GLD) have been trading as much as 6% lower. And don’t even get us started on the dramatic drop for iShares Silver (SLV).

Other than extraordinary capital gains for defensive sectors, then, is something going on? You might call it a dollar reversal, as gains in the greenback have led to a “risk off” trading environment. Others may simply be running for shelter on economic concerns.

Anyway that you look at it, this week has belonged to Treasury Bond ETFs. And while Bill Gross expressed a long-term desire to “short” treasury bonds in his Pimco Total Return Fund, he attributed current investor desire for treasuries to global trade imbalances. Score one for the iShares 20 Year+ Long Treasury Bond Fund (TLT).

How concerned should investors be about a simultaneous craving for comsumer staples and treasuries? Would anyone dare suggest that a bear may be coming out of hibernation? Should you simply “sell in May and go away?”

Treasury ETFs Rise In Safety Trade - Tom Lydon, ETF Trends
Dividend ETFs As A Safe Harbor While Inflation Becomes a Reality - MyPlan IQ
HOLDRS ETFs With Low Fees And Low Valuations - Robert Goldsborough, Morningstar

Disclosure Statement: ETF Expert is a web log (”blog”) 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 and interested financial companies 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. Moreover, ETF Expert employees and Pacific Park Financial, Inc. representatives do not have the capability to substantiate performance or other claims made by advertisers. You may review additional ETF Expert disclosure details here.

Tags | Dividend ETFs, ETF Investing, HOLDRS ETFs, Treasury ETFs