Last September, I said the new PowerShares Global Coal Portfolio(PKOL Quote) was well-constructed but poorly timed in light of the bear market. Now, it might be a good time to revisit this exchange traded fund.
Coal stocks are generally more volatile than large oil companies. Adding more potential volatility to a portfolio during a bear market is probably a bad idea. Instead, investors should boost volatility after a big decline or as stocks rise. The market might be at that point now. In that first article, I compared the PowerShares Global Coal Portfolio to the Energy Select Sector SPDR Fund(XLE Quote), noting that the PowerShares fund would decline more in a down market. That trend played out, but the coal fund has since rebounded, soaring 69% this year as the SPDR fund rose 1.7%.
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,465.23 | 1,110.74 | 2,177.91 | 32.68 |
Oil *
78.60
|
|
UP
31.52
|
UP
5.09
|
UP
8.73
|
DOWN
0.49
|
10 Yr
3.27%
SPDR Gold
116.45
|
|
+0.30%
|
+0.46%
|
+0.40%
|
-1.48%
|
Data delayed 20 minutes |















