ETF Updates Archive

Trading Natural Gas and UNG

If you have been reading my work over the past year you should know I don’t like natural gas. More people have lost money trying to play natural gas than any other investment vehicle out there which is why I don’t cover it very often. Many of you have been asking about Natural Gas (UNG) so here are my thoughts on it.

UNG has been in a down trend for several years and the only trades should be short positions at this time. The argument from some is that it’s undervalued and with winter just around the corner prices should go up.

Mid-Week Market Report on Equities and Metals

Its been an interesting week with stocks, commodities and currencies having a knee jerk reaction to the FOMC minutes released Tuesday afternoon. In short the Fed clearly said there must be more quantitative easing before things will get better. It was this news which triggered a rally in both stocks and commodities.

Quantitative easing is a fast way to devalue the dollar and the Fed is doing a great job at that. As long as the dollar continues to decline the stock market will keep rising.  Read more>>

Chris Vermeulen

www.TheGoldandOilguy.com

The 5 year massive bull run in Gold and Gold Stocks continues

Last August I penned an article predicting a massive five year bull run in gold and gold stocks.  I outlined my reasoning and compared this 13 year period from 2001 to 2014 to the tech stock bull from 1986-1999.

In February of this year, I again wrote an article for Kitco.com explaining the 13 year Gold Bull still had a lot more room to run.  At the time Gold had pulled back to 1040-1070 windows and I mentioned that “smart money would be accumulating” and we should look for $1300-$1325 as the objective.  That brings up forward to October of 2010, with Gold running to $1350 as recently as this morning.

We have a huge rally because we are in the 2^nd year of this final 5 year run I predicted, and this is when the general investing public becom

Active Management Comes To Emerging Market Bond ETFs

WisdomTree has introduced an addition to the ETF landscape with an active ETF in the emerging market bond category.

Emerging market bonds are a unique asset class with extraordinary characteristics which many ETF investors have made part of their portfolios for many reasons. Emerging market bonds have high absolute returns with low correlation to other markets and are high yielding vehicles.

Of the products on the market, the WisdomTree fund is the only local currency and actively managed ETF.

Lower Duration For Better Inflation Protection

TIP Securities have been around only since 1997, placing them a time period with only relatively tame levels of inflation. That being said, the need for inflation protection is very relevant, and investors now have access to five TIPS ETFs. They give investors a choice among broad based, intermediate, short-term, and long-term durations.

Gravitating towards shorter duration bond holdings in the TIPS marketplace will mean choosing a higher correlation with inflation, lower volatility, and only small yield differences. PIMCO is currently the only ETF issuer with a full family of TIPS exchange-traded products.

Duration is a measure of the average life of a bond.