Tag: ETF Investing

Tech Stocks On a Run; ETFs To Buy 'IF' you Think It Will Continue

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


The NASDAQ (NASDAQ:COMP) has hit a number of new all-time highs in 2017. This has many analysts and investors wondering if the market and especially technology stocks are getting over-heated.

The Bulls will tell you that we are entering a new time of economic expansion and that technology is leading us forward. They say the higher than normal P/E ratios are due to the massive growth opportunities these companies still have moving forward.

The Bears, which I spoke about a few weeks ago, disagree and believe we are heading toward the next dot.com bubble. They say the 'Bulls' growth expectations are already built into tech stocks so much so that these companies are priced to perfection, which we all know is unlikely to happen.

Personally, I sit in-between both camps because I do believe some technology stocks will fail to meet expectations but others are completely changing how commerce is done, and because of their disruptive businesses, they will succeed. Continue reading "Tech Stocks On a Run; ETFs To Buy 'IF' you Think It Will Continue" →

Tech Stocks On a Run; ETFs To Buy 'IF' you Think It Will Soon Come to An End

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


The Bears have been referring to the current situation with technology stocks as the building up of the next dot com collapse. Price to earnings ratios are high, earnings expectation may be overinflated, and the unknown that surrounds all aspects of the current political landscape and how that could affect businesses are all reasons to be doubtful that technology stocks can continue on their massive run.

One analyst believes you should buy any of the technology stocks that garner a large portion of their revenue from advertisements. The analysts noted that companies like Facebook (NYSE:FB) and Alphabet (NASDAQ:GOOG) are likely to experience a revenue slowdown in the future because, at the end of the day, there is only so much money that can be thrown at web-based advertising.

Others think Amazon.com (NASDAQ:AMZN) may be getting too big and trying to do too much, and it could end up destroying itself. Sounds similar to what the bears say about Tesla (NASDAQ:TSLA).

At the end of the day, a negative case can be made about every single technology stock. If you agree with those cases and you want to start looking for some opportunities to make money when technology stocks start falling, then let's take a look at some or your options I have outlined below. Continue reading "Tech Stocks On a Run; ETFs To Buy 'IF' you Think It Will Soon Come to An End" →

How To Profit From The Amazon-Whole Foods Deal Before It Happens

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


The announcement that Amazon.com Inc. (NASDAQ:AMZN) had made an offer to purchase Whole Foods Market Inc. (NASDAQ:WFM) sent the grocery stocks plummeting. While some experts think Amazon's move into the grocery business is a great idea, others aren’t so sold on the idea.

Regardless of whether this move by Amazon is good or bad for Amazon, the grocery sector was punished by this news and I don’t think stocks like The Kroger Co. (NYSE:KR) deserved to fall nearly 10% on the news. Or even Wal-Mart Stores Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), Costco Wholesale Corporation (NASDAQ:COST) all losing billions in market capitalization just because Amazon is buying Whole Foods.

Really? Continue reading "How To Profit From The Amazon-Whole Foods Deal Before It Happens" →

Currency Hedging ETFs; Why You Would Buy Them

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


While there is certainly some additional risk associated with Exchange Traded Funds that offer currency hedging, investors looking for international exposure need to consider currency hedging ETF's as a viable option.

I am not normally in favor of ETFs that increase investors risk by using sophisticated investment strategies which increase leverage or offer hedged protection. These products are 'offering' this added feature at increased cost to the investor and usually more so than that at rather elevated risk levels.

In most cases I would argue that if you need to hedge against something, than why even invest in that sector at all? When it comes to foreign equities, it is hard to ignore the developed markets like Europe and Asia. But, the big risk of investing in those countries today is how fluctuations in the currency will affect your returns.

If your investment increases in value by say 10%, but the U.S. dollar compared to that foreign currency increases by 10%, then you have not made a single dollar. Your entire investment gain was wiped out by the currency exchange rate changing. The opposite can also happen; if your asset declines in value, but so does the dollar, than you haven’t lost anything. Continue reading "Currency Hedging ETFs; Why You Would Buy Them" →

Why ETFs Close And How To Avoid Buying One That May Close

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


As Exchange Traded Funds become more popular and more money flows into this asset class, it is inevitable that more ETFs will both open and unfortunately close. Currently there are more than $3 trillion in assets in ETFs spread across more than 2,000 different options to choose from.

In 2016 we saw 216 new Exchange Traded Funds. But we also saw 58 funds closed last year. While there can be a number of different reasons funds are closed, the bulk of ETF closures occur because of one of the following three reasons; a weak ETF issuer, low assets under management, or a low rank within its industry.

If you understand why these are the three main reasons an ETF will close, you will be able to avoid buying ETFs that show similar traits. Furthermore you will likely save yourself a big head-ache, and more importantly a lot of money. Continue reading "Why ETFs Close And How To Avoid Buying One That May Close" →