ETF Investing Strategy Archives - Page 35 of 36

GLD vs. SLV: Investors Favor Less Successful Gold

Posted on June 30, 2016 by Aibek Burabayev

Today I would like to share with you an analysis of precious metals ETFs. The goal of the study is to identify the correlation of price moves in both gold and silver with the demand for their ETF shares, represented by an appropriate precious metals holdings change. Below the chart you will read some interesting findings.

Chart 1. Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support

Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support
Chart by Aibek Burabayev, data source: spdrgoldshares.com; ishares.com

In the first quarter of the last year, we can see that investors were betting on a bottoming gold price with a 4% rise in SPDR Gold Trust (PACF:GLD) holdings despite the 1% fall in price. It’s interesting that at the same period, investors, on the contrary, cut their silver ETF holdings despite the rising silver price; it looks like they used the ‘sell silver on spike’ approach to gain on metals correlation. It’s amazing! But they were right shorting silver as it fell in three consecutive periods exceeding gold’s losing streak. Continue reading "GLD vs. SLV: Investors Favor Less Successful Gold" →

3 ETFs To Play The Housing Boom

Posted on June 3, 2016March 24, 2021 by Matt Thalman

The true pure-play housing stocks have been on a tear lately, as new home construction picks up and industry insiders believe the market could get even hotter as another rate hike is likely in the fall.

In April data indicated that new home sales grew at the fastest rate in eight years. Furthermore, during the earnings conference call for homebuilder Toll Brothers' (TOL), the companies Chairman Robert Toll said that a rate increase could actually help continue spurring demand.

“What you have with a price increase is an increase in demand created because the price has gone up, which by the way may come to us in the summer months this year,” he said. “If the Fed goes up and the mortgage rates go up an eighth or a quarter, it probably means price increases are coming soon, which spurs demand and spurs action. So it's too early yet to tell, but we could be onto something good.”

If higher rates or just the threat of higher rates is going to help the housing industry than now is the time to buy. Over the last few weeks, the Federal Reserve's meeting minutes and a number of Fed members have hinted that rates will likely increase in the fall. To me, that sounds like at least a threat, if not a clear sign that higher rates are coming soon.

So, what should you buy to profit from a strong housing industry? Continue reading "3 ETFs To Play The Housing Boom" →

How You Can Profit From Those Annoying Political Campaign Ads

Posted on February 24, 2016February 24, 2016 by Matt Thalman

With the Presidential Election just nine months away, now is a good time to start considering how 'you' the average American can benefit from this once every four-year circus event. I recently spoke about how it's likely firearm stocks could see a boost from this event, today I would like to discuss another industry likely to see revenues increase.

But, before we jump into how you can make money this election season, let's take a look at what is making this all possible.

During the 2008 Presidential Election more than $7 billion were spent according to Borrell Associate's estimates. In 2012, election spending was estimated to hit $9.8 billion. But as of now, the 2016 election cycle is expected to see $11.4 billion spent. Now these figures are not just for spending on Presidential campaigns, but all political office's votes will be held for this year. Continue reading "How You Can Profit From Those Annoying Political Campaign Ads" →

Markets Down More Than 8% To Start 2016! What You Should Do Now

Posted on January 20, 2016 by Matt Thalman

Buy! Buy! Buy!

We have all heard the saying, buy low, sell high, which is an easier to understand saying than Warren Buffett's famous quote, "Be fearful when others are greedy and greedy when others are fearful."

With the major US indexes all down more than 8% to start 2016, it would appear this is the time to follow the above-mentioned advice. Stock prices in general, based on the major indexes are 8% cheaper than they were just half a month ago, hence, buying today is buying low. Buffett's advice follows that idea and tells us to be greedy when others are fearful. The market is moving lower, indicating that the majority of investors are fearful of where stock prices will be in the future. If we follow Buffett's advice, this is a good time to be greedy.

I know what you are thinking, can't prices go lower from where they are today, giving you an even better opportunity to 'buy low' in the future. Yes, that obviously could happen. Continue reading "Markets Down More Than 8% To Start 2016! What You Should Do Now" →

ETF's That Let You Trade the Volatility Index "VIX"

Posted on November 9, 2015November 6, 2015 by Matt Thalman

One of the many great side effects to the rise in popularity of Exchange Traded Funds, ETF's, is that they have increased the types of investments individuals can buy into. The average investor can now easy buy and sell funds that hold actual commodities, indexes, bond portfolios, and even dabble in the options markets without ever making a signal put or call trade themselves.

Today, I would like to point out how investors can use ETF's to play the S&P 500 Volatility Index or VIX.

But, before we get into the ETF's that allow you to profit from the VIX's moves, let take a look at the VIX itself and what causes it to move in one direction or the other. The VIX is calculated using option pricing. It looks at the price of the call and put options because we know that higher option prices mean that investors believe there is a greater chance of volatility. Without getting into too much detail about options, the reason this works is because if an underlying security has high volatility it can make an option more or less valuable depending on what side of the trade you are on. Because the level of volatility will change the likelihood, the option will expire in or out of the money.

Are you confused yet? Continue reading "ETF's That Let You Trade the Volatility Index "VIX"" →

Tag: ETF Investing Strategy