It’s a well known fact that ETFs offer certain tax advantages over mutual funds. How do they come about? For more details please read “The ETF Creation and Redemption Process Explained:” Exchange traded funds (ETFs) are truly unique products with a number of advantages. One of the “pros” of ETFs is their tax efficiency, which is a direct result of …
Sunday Musings: Short-Term Correction, Long-Term Disaster?
Some have readers have pointed to Paul Farrell’s recent story titled “Obama’s ‘predictably irrational’ economic policies.” In case you missed it, here are some highlights: First: Kiss the rally good-bye, says Jeremy Grantham, legendary CEO of the $101 billion GMO money-management firm. Why? The market is overvalued 25%. A minimum 15% correction is coming in 2010, putting the Dow in …
New Money
I have discussed this before, but it’s an important subject that every investor wrestles with at one time or another: Should or should I not invest new money at this point? Reader Norm put it this way: I have been following your newsletter for some time and you saved me a lot of money last year. Would you put new …
No Load Fund/ETF Tracker updated through 12/3/2009
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpThe major indexes kept their upward bias intact and closed the week higher. Our Trend Tracking Index (TTI) for domestic funds/ETFs has now crossed its trend line (red) to the upside by +7.63% keeping the current buy signal intact. The effective date was June 3, 2009. The international index has now …
Reader Contribution
Sell stops, and especially their tracking, have resulted in a lot of reader feedback. While there are many ways to follow the high price of a fund/ETF you own, reader Kirk had this to say a few days ago: In the spirit of Thanksgiving, I am sharing a sample of an easy to use spreadsheet for Trend Tracking.Once it is …
Getting Squeezed By Low Volume ETFs
I have talked about the importance of only using ETFS with high volume to be sure that you can enter and exit at a moment’s notice. One reader had this experience: I have a comment and question about the Nov.2 column about sell stops. The comment: I ran into a different kind of problem recently with sell stops. I had …