Retirement
It's Time to Consider a Coal ETF
I asked PowerShares to explain the small coal weighting for this article and the last one, but didn't get an answer. I don't think uranium exposure is negative, but anyone interested in the fund needs to know the reasons behind this strategy.
Investors who use ETFs to build portfolios based on industries can manage volatility by rotating exposure. When the market appears vulnerable to a large decline, (for example, when the S&P 500 Index has breached its 200-day moving average) it makes sense to cut positions in coal, oil sands or alternative energy. When the market appears to be recovering, it's time to reinstate those stocks. Coal stocks are going to be more volatile than large oil companies most of the time. As you manage your portfolio, keep in mind that this volatility will usually be good on the way up and bad on the way down.TheStreet Premium Services
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn MoreTo 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.
blog comments powered by Disqus
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,393.45 | 1,310.33 | 2,827.34 | 15.81 |
Oil *
101.78
|
|
DOWN
26.41 |
DOWN
2.99 |
DOWN
10.02 |
DOWN
0.44 |
10 Yr
1.58%
SPDR Gold
151.62
|
|
-0.21%
|
-0.23%
|
-0.35%
|
-2.71%
|
Data delayed 20 minutes |
Connect with TheStreet