A few days ago, I wrote that the media does not like to include bear markets when reporting performance comparisons between mutual funds/ETFs and the S&P; 500.Of course, I can’t read every financial paper in the universe, so my view is limited to those that I do read. Reader (and client) Nitin pointed out an article in the NYT that …
ETF/No Load Fund Archives: Revisiting The Basics Of Trend Tracking
Some people are using the basic ideas of trend tracking in their investment approaches without even being aware of it. I was reminded of that yesterday as I was reading Random Roger’s blog. Here are a few points he addressed, which are the essence of our trend tracking methodology. His points are excellent and he says, among other things, that: …
ETF Assets Reach almost $500 Billion
With new ETFs being brought to the market as fast as regulatory approval can be obtained, investors are gobbling them up at blazing speeds. Total assets held in ETFs are approaching the $500 billion mark. Considering that it’s been only 4 years ago, that I wrote the article “No Load Mutual Funds Or Exchange Traded Funds?” designed to familiarize many …
Technical Analysis: Is It Time To Take Profits?
I am in favor of any investment methodology that uses some type of reasoning for getting into an investment and, more importantly, getting out of it to either take profits or to limit losses. Any such approach is better than the mindless “Buy & Hope—things will somehow work out in the long-term” way of thinking. While I am admittedly biased …
Mortgage Backed Securities: Can They Affect Your Mutual Fund/ETF Investments?
Even though I am not specifically looking for it, I seem to come across articles dissecting the potential effects of either the SubPrime Loan debacle or the real estate bubble. This latest one offers a sobering analysis of losses sustained from mortgage backed securities (MBS). While it has been estimated that so far some $100 billion has been lost, the …
Trend Tracking And The S&P 500
With the S&P; 500 having finally closed above the 1,500 level for the first time since Sept. 7, 2000, let’s look at a bit of recent history. Incidentally, that date occurred just 1 month prior to our Trend Tracking Index giving an all out sell on Oct. 13, 2000. This broad based index made its all-time high of 1,527 on …