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
TheStreet Open House

Middle-Of-The-Risk-Spectrum ETFs for Uncertainties in November

NEW YORK ( ETF Expert) -- It would be easy to blame the S&P 500's 50-point intra-day pullback from a September peak on quarterly corporate numbers alone. After all, roughly one-quarter of companies have reported and a mere 60% surpassed earnings expectations -- a "beat rate" that is lower than at any other point since the bull market began in early 2009.

Even more disconcerting? Only 40% of firms have exceeded revenue targets, demonstrating that the slowdown in sales is widespread.

At the same time, the likelihood of unimpressive quarterly results had been discussed by analysts and media pundits at great length. Are we now resorting to the easiest target to explain profit taking and risk avoidance?

There are equally compelling arguments to be made about the nature of risk-taking itself. Specifically, near-term market direction may be overwhelmed by a wider array of uncertainties than had previously existed.

For example, near-term markets had previously "priced in" little change in the White House with an Obama victory and little change in Congress with the House remaining in Republican hands. While some might argue that the race was always going to be close, it was Romney's October surprise in the debates that has revived talk about "hanging chads," "voter fraud," and a "Year 2000 scenario" in November.

Why would an uncertain election outcome be particularly devastating in 2012? Without a clear winner, resolution on the fiscal cliff issues might not be attainable at all; Congress wouldn't be able to fully negotiate with the executive branch.

Indeed, there are few uncertainties that have as much crash-provoking power as paralysis in the U.S. government. It happened in August 2011 over the debt ceiling and it can happen again over a much longer laundry list of unresolved fiscal decisions.

Keep in mind that during the summe we witnessed markets occasionally pull back. Yet, they consistently rebounded, logging a bullish pattern of "higher lows."

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!
DOW 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

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