We like to pick growth Exchange Traded Funds that are tied to some long-term cyclical positives around the world. We think that the following ETFs are either good investments or good ticker symbols to put on your watch list as you manage your portfolio.
Here are our five favorite ETFs for growth:
FRAK – small, focused on natural gas infrastructure
PBW – clean energy
VEGI – global food companies
DXJ – Japanese stocks
EEMV – conservative stocks in the emerging markets
As always, if you have questions about the state of your portfolio, how to use ETFs or market action, email questions or concerns to askdoug(at)dougfabian(dot)com.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Right now, the Federal Reserve is in the market because the economy would not be able to grow without its involvement. We have a situation where interest rates are artificially low and so people are wondering what to do with their savings accounts and CDs – how do you make money on your savings without interest?
We continue to believe in the bond market for investors, but we know that it’s tempting to get into stocks because of dividend yields. Many investors are afraid of a bond market bubble and so hesitate to invest in bonds. However, we will say it again – we believe that bonds are the place to be for the majority of your portfolio.
Even if bonds do decline, you’re still getting an income stream and you are not exposed to risk and losses like in the (right now, very volatile) stock market. There are decent income streams available in the bond market, you have to be wise about what you buy and why. Also, you don’t have the downside risk in bonds that you have in the stock market.
For more information, please check out this excellent article and presentation by Jeff Gundlach. We think that he makes some excellent points and we encourage you to take this advice seriously. If you have questions about how to use bonds in your portfolio, please call our offices at 800-391-1118.
This is a podcast summary. For more information, please listen to the entire broadcast here.
When you think about your portfolio, it can be easy to lose focus on what’s important and your goals. Just because there are some scary trends out there doesn’t mean that you can’t succeed and have the life you want. As you think about your portfolio, here are some important steps to remember as you invest:
Know what you need and keep your objectives in mind.
Take inventory of your assets
Take action
Don’t approach your long-term goals with fear – stay positive and continue to be smart, consistent and motivated as you work toward your financial goals.
See Doug live this week and next, in Santa Barbara and Las Vegas, respectively. Please get more information here.
We heard a new acronym this week: TINA, which stands for “There Is No Alternative” (to equities). CNBC and other media outlets are touting the wisdom of TINA, and refusing to see any bad news for equities.
It’s interesting to note that, for the first time in 17 years, the market has not had a 5% correction from January to May. This is an incredible grind higher, but we have not seen any real opportunities to enter this market, and the fundamental instability concerns us.
The economy is not doing all that well, but, as we just mentioned, the media and the markets see negative news as a positive these days, because it means that the Federal Reserve will continue its Quantitative Easing policies. There’s a tremendous amount of faith in the central banks out there, and we all know that this is going to end in an ugly way.
Risk is very high right now. We are seeing unprecedented heights, particularly with the fundamental economic weakening around the world. Remember, fads (tech stocks and real estate, to jog your memory) do not always serve individual investors well, so be very cautious with your investments and know where your risk is.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Strategies are very important to us and we think that every investor should have one – particularly when it comes to the issue of legacy.
How do you want to be remembered, and what’s most important to you? Most people want to make sure that their loved ones, favorite causes and estates are taken care of. It’s very important to have a living trust, in order to avoid a long, painful and expensive experience for your family in probate court.
You want to pass on your assets to your children and grandchildren, and you want to avoid NIGO – a financial insider’s acronym for “Not In Good Order”. If something is messed up – a signature missing, a plan out of alignment, a trust written in order to keep your legacy intact and in good standing for your heirs and loved ones.
If you’ve built up a sizable portfolio, you owe it to yourself, your loved ones and your values to have clarity about your legacy and your expected tax burdens and concerns for the future. Call us today to discuss your needs, legacy, charitable wishes and hopes for your future, at 1-800-391-1118.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Even with the backdrop of weak economic news, nothing seems to bring the market down. This is because of massive central bank influence, and it’s incredible to watch these organizations around the world as they buy bonds and continue various methods of quantitative easing.
“Sell in May” strategies are in effect right now, and it’s a fascinating phenomenon to watch, so keep your eyes open for that.
There’s not a lot out there today for growth, we’ll be honest. A lot of investors are hiding out in “safe” consumer stocks like Johnson & Johnson, Costco and Coca-Cola. However, one of these days the wind will change, and these companies are not good growth choices, because their recent growth is an emotional one, not a logical one.
These are just items to keep on a watch list and be aware of. For more information on these topics, we encourage you to attend one of Doug Fabian’s live presentations (there are two coming up in May 2013, you can see more information on those here) and continue listening to our podcast.
Three unusual things happened last week in the markets, which illustrate this point:
Twitter flashcrash: The Associated Press Twitter account was hacked, and a false tweet was sent out, describing an explosion at the White House. It took three minutes for the AP to retract this false story, but in that time, the stock market crashed about 1%. Twitter is a new medium for instant action and this kind of technology creates volatility.
The Charles Schwab brokerage site was down for about 24 hours – blocking access to brokers. Again, this was just a glitch, but it proves that technology is a factor in our financial lives.
The Chicago board options exchange went down for about three hours as well. Another example of the havoc wreaked by even minor disturbances in service.
Mark Cuban, the owner of the Dallas Mavericks and a well-known technology mogul, had a great quote about the fallout from the AP Twitter event last week (read his full comments here): “What’s going to happen when there’s a real event? Do you really thing that there’s going to be any bids at all?” he said. “All we have are circuit-breakers that we hope will work. And then after the circuit breakers, what happens?”
We agree, and believe that it’s important that you have diversification and safety in your portfolios. In this day and age, we are dependent on technology. This dependence adds volatility to an already unstable market, and it’s important for investors to be aware. Our advice is this: plan for these events ahead of time, realize that changes are inevitable and preparation is invaluable.
This is a podcast summary. For more information, please listen to the entire broadcast here.
We are in correction mode in the stock market – however, there are opportunities beginning to emerge, and we need to watch out for those to advance our portfolio success.
There’s a lot of worry about a global slowdown, but there isn’t any inflation going on, which is an interesting development. This is a risky and fascinating time to be investing, and it’s important to be watchful and educated on these matters.
Doug will be speaking live on May 9 in Santa Barbara for the American Association of Individual Investors. For ticket information and more details, please call our offices at 800-391-1118.
Also, Doug will be presenting at the Money Show on May 14-15 in Las Vegas. See the Money Show website for ticket information – we look forward to seeing you at one of these events!
As always, if you have questions about the state of your portfolio or market action, email questions or concerns to askdoug(at)dougfabian(dot)com.
Don’t forget about our podcast! For more information about our investing perspectives, listen to the broadcast here.
