Home

Forgot?

Financial Inbox

October 22, 2014
Weekly ETF Report

Snap Back: Is the Correction Over? After last week’s severe drubbing in stocks, the mass of buy-and-hold investors out there is starting to let out a huge sigh of relief. I can’t say that I blame them, especially after last Wednesday’s huge 460-point intraday Dow drop. Since then, the market has made a notable comeback, but does this mean that the correction is over? I dare say not. In fact, it’s typical to see a “snap back” rally in markets, particularly after a sharp correction that’s taken the major indices down below their long-term, 200-day moving averages. It should go without saying that markets rarely go straight down, so to see a settling and a subsequent rebound in this market is something to be expected. To put things into perspective, consider the chart here of the Vanguard Total World Stock ETF (VT). As you can see, equities have seen a nice rebound off of last week’s lows. However, we also can see that stocks remain in a downtrend, trading below key support at the 200-day moving average. One thing that helped markets gain a bit of ground last week was chatter from Federal Reserve officials hinting that there could be a continuation of quantitative easing (QE). One official even suggested that the market pullback could be a reason to keep printing more money. My fear here is what this market is going to do if and when the Fed finally does end QE and when interest rates finally start to creep […]

October 17, 2014
Successful ETF Investing

This content is for paid subscribers only. Click here to subscribe.

October 15, 2014
Weekly ETF Report

The Easiest Way to Get to the Exits As I write today’s Weekly ETF Report, the Dow Jones Industrial Average is down more than 450 points, or 2.8%, and it now has fallen forcefully below the 16,000 level. The selling in the Dow isn’t unique, as we’ve seen big declines in nearly every major domestic market index, as well as in virtually every major equity market around the world. With everyone seemingly packing up and rushing to get out of equity positions, things are getting rather crowded at the exits. I’ve written and spoken at length for years about why I love exchange-traded funds (ETFs). Two key reasons why are that ETFs are both simple to understand and easy to use. It is the ease of use aspect of ETFs that I really love, especially when everyone is racing for the crowded exits. Because ETFs allow you to sell at any time, and with just a few clicks of your mouse, they are much more efficient in terms of allowing you to get out of positions before any real damage is done. It was this ability to buy and sell ETFs intraday that actually began my love affair with these versatile investment vehicles some 15 years ago. You see, back in 1999 we were in a roaring bull market, a bull market that I knew wouldn’t last much longer. At that time, mutual funds were all the rage, and greedy investors were blinded to the fact that the market was […]

October 10, 2014
Successful ETF Investing

Successful ETF Investing
Subscribe Today

Free Content »

What We Can Learn from the 'Snap Back' Rally

October 22, 2014

Snap Back: Is the Correction Over? After last week’s severe drubbing in stocks, the mass of buy-and-hold investors out there is starting to let out a huge sigh of relief. I can’t say that I blame them, especially after last Wednesday’s huge 460-point intraday Dow drop. Since then, the market has made a notable comeback, but does this mean that the correction is over? I dare say not. In fact, it’s typical to see a “snap back” rally in markets, particularly after a sharp correction that’s taken the major indices down below their long-term, 200-day moving averages. It should go without saying that markets rarely go straight down, so to see a settling and a subsequent rebound in this market is something to be expected. To put things into perspective, consider the chart here of the Vanguard Total World Stock ETF (VT). As you can see, equities have seen a nice rebound off of last week’s lows. However, we also can see that stocks remain in a downtrend, trading below key support at the 200-day moving average. One thing that helped markets gain a bit of ground last week was chatter from Federal Reserve officials hinting that there could be a continuation of quantitative easing (QE)....

Recent Video alerts
Successful ETF Investing
Subscriber Tools »

Welcome to Successful ETF Investing

Investors have become complacent. Stocks are near all-time highs. Volatility is low. It's almost like investors are blind to the three coming catastrophes that can crash the market 30% or more in 2013:...
Current Recommendations
Fund Allocation
abc
25%
def
25%
ghi
25%
jkl
25%
Name Ticker Date Buy Price Stop Price
number 1 abc 08/30/2009 19.74 17.74
number 2 def 10/13/2009 19.72 17.72
number 3 ghi 05/15/2009 19.35 17.35
number 4 jkl 03/30/2009 20.08 17.08