The likely effect? Higher stock prices and higher commodity prices. After all, the S&P 500 is sporting a 7.4% earnings yield (E/P) at a time when the 10-year note is just 2%.
Here are 3 ETFs that I continue adding to client accounts:
ALPS Alerian MLP ETF
(AMLP). Can the moat be any wider? There are no viable competitors to the limited number of "toll-road" transporters of oil/gas. Better yet, the 6% annual cash flow is as reliable as anything in the investment universe. Moreover, the federal regulation of
is mild (if not downright supportive).
(GXC) Inflation in China has cooled off dramatically, but so has growth. China will need to begin the process of easing/stimulating growth once more. I already began buying shares in the 50s and 60s. With GXC pulling back from its monthly peak of 70 to 65.5, put it on your "list."
PowerShares S&P 500 Low Volatility
(SPLV) You can't argue with a strong technical uptrend or an anticipated yield greater than 3%. This ETF seeks investment results that correspond to the price and yield of the S&P 500 Low Volatility Index, which consists of the 100 stocks from the S&P 500 with the lowest realized volatility over the past 12 months.
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