The focus of this article is investing risk or the relative investment potential of the ETF. This risk is much more difficult to asses because it requires researching the investment potential of the ETFs holdings.
As I wrote in “Don’t Be Fooled: Get Short Now”, the euro is not that different from Enron, WorldCom or the Madoff fund. All of these organizations were able to pretend they were profitable or solvent long after they were insolvent.
Now markets are finally acknowledging the intractability of the Euro debacle.
I have a pair trade (i.e. long/short) ETF strategy for investors who want to maximize upside potential and minimize downside risk in Technology stocks.
I discuss my market outlook and top stock picks in this interview today.
In general, I think most of the 2012 gains are behind us. I do not expect a major
With so much written about Apple (AAPL), I am amazed that so few have focused on the most important driver of its stock price: the company 270% return on invested capital (ROIC).
Investors are good at picking funds with low costs. They are not good at picking funds with good stocks. Both are required to maximize opportunity for success.
The Large Cap Blend investment style ranks first out of the twelve investment styles as detailed in my style roadmap. It gets my Neutral rating, which is based on aggregation of fund ratings of all 1222 funds in the style.
The market decline experienced thus far is closer to its beginning rather then its end. Today’s refreshing market rise is likely just a flash in the pan.
The market needs to go down again before it can sustain any future rise.
The consumer staples and information technology sectors are tops among the ten major sectors. Both get our “attractive” rating. Our Sector Roadmap report ranks and rates all of the 10 sectors. It also benchmarks all sectors against the S&P 500, which gets our “neutral” rating and the Russell 2000, which gets our “dangerous” rating.
Yes, RIMM is losing market share and fast. Yes, RIMM’s Blackberry Playbook tablet is a dud. Yes, the stock has been a stinker recently. And yes, none of what I wrote at the beginning of this article would matter if the stock were not super cheap.
I am not a smoker or tobacco user, and I do not like to be around smokers. However, that prejudice does not blind me from the fact that Lorillard, Inc. (LO) is a “very attractive” stock. I recommend investors buy it as well as the following ETFs because of their large allocations to LO and their attractive-or-better investment ratings...
Our top picks for ETFs for the Information Technology sector are: Internet Architecture HOLDRS (IAH) and Semiconductor HOLDRS (SMH). We also rate the investment merit of the top-12 tech sector ETFs.