Energy, Materials ETFs Send Bear Signals
For instance, faith in SPDR Select Sector Staples (XLP) has rarely been higher. Its uptrend remains entirely intact and it is a mere -2.5% off of its multi-year peak.
In the same manner, there are a wide variety of less volatile income producers that could be bought on the dips, from Vanguard High Dividend Yield (VYM) to Guggenheim Multi-Asset Income ETF (CVY). The 3.5%-5.5% annualized income should help to offset the persistent fears of a cataclysmic end to the investment universe. Either way, appropriate ETF hedges and intelligent stop-limit loss orders should help one rest easier about “being in.”
You can listen to the ETF Expert Radio Show "LIVE", via podcast or on your iPod. You can follow me on Twitter @ETFexpert.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts