This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Bolling: Ride Defensive ETF Trades Until the Tide Turns

You may even be able to hear a collective sigh of relief by some investment bank CEOs who are torn between telling the Street exactly how much exposure they still have and hoping beyond hope that the market for their collateralized debt obligations (CDOs), credit default swaps (CDSs) and mortgage backed securities (MBSs) finds a bid before that day of reckoning.

The day will come when it is safe to dive back into the financials. The signal will be a clear one. Headlines will read something like this: 'Home Prices on the Rise'. Now, the tide for buying is rising. The cool thing is that there will be opportunities everywhere. Billions of investable dollars are sitting on the sidelines waiting for that same bell to ring. We will be able to buy highs and sell higher. It's a trend-traders utopia. The thing is, I think this 'safe to get back into the water' bell is approaching. However, I am not ready to jump in with both feet yet.

Until the horn sounds, I think a portion of your portfolio should remain defensive. I have talked about defensive ETFs in the past. My two favorites have been, and remain, the Consumer Staples Select Sector SPDR ETF (XLP), and the PowerShares International Dividend Achievers ETF (PID).

XLP is a solid play because people will continue to buy the basic necessities, such as toothpaste, toilet paper, and deodorant, even if their home values slide and they feel the nasty sting at the pump. With this play you get exposure to Procter & Gamble (PG - Get Report), Wal-Mart (WMT - Get Report), Altria Group (MO - Get Report) and Coca Cola (KO - Get Report).

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs