Bolling: Ride Defensive ETF Trades Until the Tide Turns

The other ETF is PID, which gives you exposure to stocks that pay high dividends...internationally! For example, Barclays PLC ADR(BCS Quote), Bank of Montreal(BMO Quote) and HSBC Holdings ADS(HBC Quote) are all in this ETF. PID has performed well because, by default, it benefits from the substantial slide in the U.S. Dollar. The dollars loss is the Euro's, Yen's, Real's, Yuan's gain, so an investment in PID is fortified by being "in" these currencies.

Until the lifeguard tells us that Trader Beach is open, it is not a bad idea to diversify into a bit of defensive ETF's, which may provide a place to bank your investment bucks. Don't worry, missing the beginning of a tidal change is ok. The tide is strong enough to carry your portfolio even if you miss the first few percentage points. By waiting, you can avoid some early swimmers who get caught in nasty riptides. (Sorry for all the campy aquatic references...can't help myself given the view.)