It follows that the best assets for a ”risk-neutral” September-October may be the inflation-fighters (e.g., real estate trusts, inflation-protected treasuries, oil, precious metals, etc.). They have the potential to appreciate in price, whether the central banks act or keep promising to do so. They also have the potential to do well if stocks or treasuries struggle for direction.
Inflation-fighting ETFs have been low-risk superstars since the Fed extended ”Operation Twist” on June 21. Using stop-limit loss orders for protection, you might consider adding one or more of these 5 to your portfolio today:
|“Risk-Neutral” Inflation-Fighting ETFs (6/21-8/28)|
|PowerShares DB Commodity Index (DBC)||17.6%|
|SPDR Gold Shares (GLD)||6.4%|
|Vanguard REITs (VNQ)||5.9%|
|SPDR DB International Gov Inflation Protected (WIP)||3.9%|
|iShares Barclays TIPS Bond Fund (TIP)||1.8%|
You can listen to the ETF Expert Radio Show "LIVE", via podcast or on your iPod. You can follow me on Twitter @ETFexpert.