In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 1/27/2013.
The relentless march of the major market indexes into the nosebleed section continued, as the S&P 500 took out its milestone 1,500 level on the second try by closing the week at 1,503.
It’s simply amazing what the Fed’s monthly monetary pump fest of $85 billion can do as there seemingly is no end in sight as to how high we can go. Some analysts pegged the next level at the 1,560 area, which would represent a new high for this benchmark index. We may get there, but when this run ends, it will end badly in a hurry most likely caused by some black swan event.
Obviously, there is no rationale behind this move as the economy continues to chug along totally disconnected from current market levels. Nevertheless, the trend is towards higher prices until the music stops, at which point anything is possible. This is exactly the type of environment where you can get burned financially if you do not have your exit strategy in place.
Should the trend reverse, be sure to execute your sell stops. If you’re new to the sell stop idea, you can download my free e-Book on the topic here.
Over past week, we covered the following:
One Man’s Opinion: Will US Equities Rise As The Budget Deficit Shrinks?
New ETFs On The Block: iShares New Core ETFs (ISTB, IXUS, IEMG, IEFA)
ETF/No Load Fund Tracker Newsletter For Friday, January 25, 2013
Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 1/24/2013
Tech Shares Decline As Apple Slumps; S&P 500 Touches 1,500 Level; Europe Rises On Upbeat PMI Data
Tech Stocks Push US Equity ETFs Higher; Europe Rises Ahead Of US Debt Vote
7 ETF Model Portfolios You Can Use – Updated through 1/22/2013
The Relentless Equity March Continues; Europe Slips
ETFs/Mutual Funds On The Cutline – Updated Through 1/18/2013
Contact Ulli
Comments 2
Hi Ulli,
Considering the Fed’s current monetary policy, when would be the appropriate time to consider investing in a Bear ETF like TBF ProShares Short 20+ Year Treasury?
Don,
A good time would be once TBF breaks above its long-term trend line to the upside, which it recently did. If you are an aggressive investor, you can look for some limited exposure, but use a trailing sell stop. The Fed’s policies call for continued lower interest rates, and TBFs move could be just a dead cat bounce. That would also be true in case equities take a dive, which they will but the timing of it is totally up in the air.
Ulli…