The takeaway for investors? We will see pullbacks, corrections and volatility again... absolutely. Scandals, military action and even buyer fatigue can set major indexes back temporarily. Yet the desperate quest for yield in a zero-interest-rate world coupled with company refinancing of debt and subsequent stock share repurchasing guarantee asset price inflation in the intermediate-term. (The long-term... you're not going to want to think about it right now!)
Armed with this knowledge, there are a variety of stock ETFs that make sense on a pullback to a 50-day moving average. (Yes, I'd wait for it.) For example, PowerShares Buyback Achievers (PKW) is a savvy ETF for taking advantage of a corporations that repurchase 5% or more of their outstanding shares over the trailing 12-month period. PKW has practically doubled the performance of comparable benchmarks since the bull market began in March 2009.
Another wave that is worthy of consideration is the second coming of dot-com. While the Facebook (FB) IPO fiasco may make it seem like Google (GOOG), Amazon (AMZN), eBay (EBAY) and Netflix (NFLX), are yesterday businesses, their business models have improved dramatically over time. Many are mature enough to have survived the so-called New Economy, yet they are new enough to offer remarkable growth at fair prices. I prefer First Trust DJ Internet (FDN) over PowerShares Nasdaq Internet Portfolio; the former has a lower allocation to Facebook (and significantly greater trading volume).Follow @etfexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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