In an almost identical performance from the prior trading day, the early rally attempt on Wednesday was rebuffed, and the major indexes ended up essentially unchanged. For the time being, it seems that selling sets in when the S&P; 500 moves to its resistance level in the 1,125 area. Even decent economic news could not prevent the slide. Maybe it’s …
Will Gold Be The Next Bubble?
If you believe the heavy hitters of the investment world, gold could be the next bubble as “Soros Signals Gold Bubble:” George Soros is helping drive up gold prices by doubling his bet in a market even he considers a “bubble” as Goldman Sachs Group Inc., Barclays Capital and HSBC Holdings Plc predict more gains before it bursts. Soros Fund …
10 Rules For Buying ETFs
I came across this article titled “The 10 Rules You Need to Know Before Investing in ETFs.” While most are well known, I was surprised to see rule # 8 “Have an Exit Strategy;” What would cause you to change your mind and re-evaluate your position? Is the reason you purchased the ETF still valid? Have the fundamentals changed? Have …
Saving A “Good” Mutual Fund From A Bad Ride
“Stupid Investment of the Week,” mentioned some good mutual funds with a bad ride in 2008. Here are some highlights: In a few weeks the worst of the stock market’s meltdown will fall off the short-term performance charts. In its place will be all of the rally, and one-year performance numbers that in some cases look downright showy. Yet investors …
Sunday Musings: Higher Interest Rates Ahead?
Reader Jim pointed to an article titled “Bracing for Higher Interest Rates.” Here are some highlights: That was the unmistakable message from the Federal Reserve last week when it increased the discount rate, the rate it charges banks for borrowing reserves. Although the move came sooner than many expected, it was a healthy step toward more normal conditions and a …
Bond ETF Bubble Protection
ETF Trends featured “How to Protect Yourself from a Bond ETF Bubble.” Here are some excerpts:It’s going to happen sooner or later: interest rates can’t remain at record lows indefinitely. The Federal Reserve at some point is going to have to step in and raise them. If you’re holding bond exchange traded funds (ETFs), you need to understand the risks …