I do not know when the markets will decide that 1% revenue growth eventually hinders future earnings. I cannot predict when short-sellers and profit takers will make bearish prognosticators appear brilliant. I certainly do not know if Europe's deepening recession or the next
the ongoing currency wars
will be at the root of the next stock market correction. Nevertheless, pullbacks are as inevitable as a disgruntled relative complaining at a family get-together. It's going to happen.
I recommend that an ETF enthusiast put together a list of stock ETFs that he/she would like to own if the prices were 5%, 10% and/or 15% lower. At a 5% discount from current prices, I like investments such as
iShares High Dividend Equity
iShares MSCI Emerging Market Minimum Volatility
GlobalX Super Dividend
At a 10% discount from current prices, I might consider broader market assets like
iShares Mid Cap Value
WisdomTree MidCap Dividend
iShares MSCI Hong Kong
And at a 15% discount, when one needs to recognize the genuine possibility of a correction becoming a ferocious bear, I may be keen on those stock ETF assets that held up significantly better under fierce volatility and negativity. In all instances, I will employ
stop-limit loss orders
to protect against the possibility that losses accelerate.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.