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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

7 ETFs on Investors' Holiday Wish List

Stocks in this article: IEO YAO IGE RSX IYT VWO IYM

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( ETF Expert) -- In my Oct. 27 commentary, 3 Reasons Stock ETF Investors Should Continue To Tread Lightly, I pointed to the fact that the monthlong stock surge had not come from the spectacular earnings season; in fact, the average return for individual securities on the session following a third-quarter earnings report was -0.21%, suggesting that the entire October run-up emanated from enthusiasm for pan-European cooperation.

It follows that articles that primarily attribute falling equity markets to the U.S. Super Committee's failure to reach an accord are misleading. Granted, political dysfunction does increase uncertainty about the future, and the markets can't stand uncertainty. Nevertheless, the only real thing moving the benchmarks has been the outlook for debt crisis containment in Europe.

Need proof? As recently as September, many economists were predicting a U.S.-based recession based on U.S. data points. Yet that talk has been placed on the back burner after phenomenal earnings growth, a seven-month low in unemployment claims and GDP economic acceleration.

(Note: GDP growth in the U.S. is far from superb. However, we should recall that it has gone from 0.4% in Q1 to 1.3% in Q2 to 2.0% in Q3. The average GDP forecast for Q4 GDP growth currently exceeds 3%.)

Follow TheStreet on Twitter and become a fan on Facebook.

With a number of building blocks in place -- stellar E/P yields, historically attractive P/Es, healthy corporate balance sheets, accelerating U.S. GDP growth, subsiding inflation in some emerging markets -- why have markets shed 100 points on the S&P 500 in a matter of weeks? What's behind the 8% pullback from recent highs and 12.5% since April of 2011?

The answer is as simple as a chart of the Currency Shares Euro Trust (FXE). The euro-dollar via FXE tumbled in September, as did stock assets. FXE rebounded sharply in October, as did stock assets.

Unfortunately, the European Union's chances for preventing its debt woes from going viral appear to be waning. Specifically, in November, FXE is on the decline once more.

FXE 50 Day

In my estimation, I would stick with the low volatility ETFs and non-cyclicals if FXE remains below a 50-day moving average. In this regard, I've been advocating funds like PowerShares S&P Low Volatility (SPLV) and JP Morgan Alerian MLP (AMJ).

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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