5 Stock ETFs for the 2011 Global Economy

NEW YORK ( ETF Expert) -- Many of the major financial publications and news services are clamoring for 2011 predictions. I've already fielded requests from WSJ, Dow Jones and Investor's Business Daily.

It doesn't seem to matter that I am not, nor have I ever been, a "buy-hold-n-hoper." The media have deadlines. They want my picks. And calendar-year prognosticating is a time-honored tradition for capturing more readers.

Okay... so I play the game. In fact, I played it so well in 2010, my " Lazy 7" ETF Portfolio dramatically outperformed the S&P 500.

At this point, I'm ready to give a number of ETFs that should benefit from peering into my crystal ball. In fact, I'll give 5 ETFs that I like quite a bit, stop-loss limit orders notwithstanding.

However, if you're looking for the "Lazy 2011 Portfolio, you'll need to wait until Dec. 31. A portfolio requires diversification through non-correlating assets, especially if it has to be held for 12 months. So for now, let me offer 5 ETFs that should benefit from a global macro-economic perspective --not as a portfolio, but as a list. (Note: In essence, this is the same list that I am providing to the financial journalists in the mainstream media.)

1. Market Vectors Coal ( KOL)

2. SPDR Oil/Gas Equipment Services ( XES)

3. iShares DJ Technology ( IYW)

4. Global X China Consumer ( CHIQ)

5. iShares Chile ( ECH)

The sovereign debt crisis in Europe, Japanese deflation and pockets of economic uncertainty in the U.S. (e.g., housing, unemployment, etc.) will lead developed economy central banks to maintain "loose" monetary policies. In essence, this means the mature economies will continue endeavoring to "reflate" to support the global industrial cycle. As long as the Fed and others are reflating, early business cycle stock ETFs should be the biggest beneficiaries, from Market Vectors Coal (KOL) to SPDR Oil & Gas Equipment Services (XES) to iShares DJ Technology (IYW).

Of course, the real growth is in the emerging markets... and Chinese consumerism will carry the lion's share of world GDP growth. Yet China has been tightening monetary/fiscal policy to keep inflation in check. I believe they will be successful, but in so doing, it will give fits and starts to emerging market equities. I still like Global X China Consumer (CHIQ) as a potential stock ETF for the theme.

Finally, while 2011 should be a strong year for the equity markets, nobody should expect a non-volatile ride. There are reasons to fret the debts of mature economies, and the possibility of rising bond yields to satisfy the increased risks associated with mature economy bond ownership. I intend to profit through lower-risk emerging markets like iShares Chile (ECH), just as I profited from ECH in 2010. The country has terrific growth prospects as well as a superb status as a credtor nation. I like it again in 2011.

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Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

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