This Day On The Street
Continue to site
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

The ETFs You Should Be Buying (or Waiting to Buy) in May

NEW YORK ( ETF Expert) --This week, the S&P 500 closed at an all-time record peak. Yet, very few folks seem to be talking about "selling high and buying low."

If anything, a number of respectable analysts cheerily predict that any efforts to sell into market strength in May will be met quickly with a steady demand for buying into weakness.

The case for the endless stock rally hinges on the activity of the world's central banks. Many contend that the U.S. Federal Reserve, the Bank of Japan as well as the European Central Bank have been far more aggressive than they were in earlier years of the market's rebound. Officials in charge of monetary policy have added hundreds of billions in bonds to bloated balance sheets, pushing yields lower and increasing risk appetite. Moreover, some countries are taking stakes in equities to further push asset prices higher.

Nevertheless, the pundit community may be ignoring the probability that central bank decisions are largely factored into the last 11 months already. The S&P 500 has gained ground in six consecutive months, 10 of the last 11. Additionally, the S&P 500 has powered ahead without a 5% correction for more than 100 trading days... a rather uncommon actuality for any bull run.

Equally compelling is the fact that a 5% pullback has occurred at least one time in the first five months of every year since 1996.

Is the ancient news of central bank liquidity so powerful that it can override historical trading patterns, weak corporate revenue, a slowdown in global growth, serious debt troubles in the eurozone and the wisdom of "sell high, buy low?" While those with significant cash on hand may feel like they have been waiting on Mr. Godot or Mr. Guffman, they should recognize that Mr. Market's "Hyde-side" always appears. My thought is that he will appear sooner, although admittedly he may arrive later... much later.

If you have been more conservative, and if you have not captured as much of the 10%-11% year-to-date upside that an all-stock portfolio might have provided, consider the history of the S&P 500.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs