I will admit that I tend to have a permanent bias towards the downside. However, I think that this market just does not want to go down. The S&P 500 keeps hitting support and bouncing despite earnings, crisis, politics, etc. It seems that bearish traders are getting a little tired. (more…)
Shorting China’s Growth – FXI
There isn’t much data due this week, but I am very interested in the Chinese economic announcements due on Thursday. The downward trend has been accelerating and I think that will be the catalyst for a break on FXI below $32 per share. (more…)
The Dark Side of Currency ETFs
Whenever an investment sounds too good to be true, it probably is. This is the cautionary tale we tell with the introduction of a batch of currency ETFs. We help you identify the difference between legitimate currency ETFs and those ETFs that only exist to generate fees.
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ETFs or ETNs? Choose Exchange-Traded Funds
ETFs and ETNs can both serve the same purpose in your portfolio, but they're structured differently and we point out a few reasons why you may want to stick with ETFs.
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Understanding ETFs and Mutual Funds
Exchange Traded Funds and Mutual Funds both offer investors some distinct advantages and disadvantages. We discuss the relative benefits of each and help you understand what they offer investors.
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What is a Fund of Funds?
There is a relatively unknown subsection of the investment marketing industry called Funds of Funds (FOF). Recently these collective investment schemes have had some light shown on them as the Madoff scandal continues to disrupt the financial markets. Many of Madoff’s investors were actually FoFs. In this article I will explain what FoFs are and why they are generally a bad idea. (more…)
Do You Need a Dealer to Trade Forex?
Currency ETFs can be used to profit from a falling dollar or a stronger yen. Learn how to trade currencies without having a futures or forex account.
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How to Trade the U.S. Dollar Index
The U.S. Dollar fell dramatically against other global currencies in 2010 and the trend is likely to continue in 2011. Deficit spending, war and a Fed that is flooding the market with dollars to assist the banking market could cause accelerating rates of inflation and continued currency weakness. Inflation can be a very bad thing for savers and investors holding stocks or other assets denominated in dollars. However, it is easy to turn this problem into an opportunity over the next year. To understand how to take advantage of the trend in the dollar, here are a few concepts to remember: (more…)
How to Buy Gold in Your Brokerage Account
Buying gold in your traditional brokerage is less expensive and much more flexible than buying the physical commodity. Learn more in this video.
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Commodity Stocks vs. Commodity ETFs – Which is Better?
Commodities can have great trends and represent a diversification alternative for longer term profit opportunities. However, very few individual investors are willing to trade futures, which is traditionally how traders get access to that market. There are some excellent low cost alternatives to futures but which method is best really depends on what your investing objectives are. (more…)