Stocks Are Down, Talk Of A Recession Coming! It's Time To Panic! Or Is It?

Matt Thalman - INO.com Contributor - ETFs


A large number of investors, talking media heads, and Wall Street analysts are predicting that the US toward another recession. Even the mention of the 'R' word (recession) sends fear through not only investors blood, but nearly all American's.

Why? Because soon after hearing the word most people begin remembering 2007-08 financial crises which sent the US economy into a 19-month recession, which to make matters worse from a psychological standpoint has been coined 'The Great Recession'. Furthermore, since the 2007-09 recession is still fresh on everyone minds and was terrible in terms of job lose, declining economic activity, low 401-K balances and stock prices, when the 'R' word is used now, everyone immediately thinks of all those terrible things happening again. This causes fear and panic to quickly set in.

From a market standpoint, this can send equity and commodity prices lower, further increasing the likelihood of a recession. (Think self-fulfilling prophecy.)

But let's stop right there for a moment and look at what is really happening with the markets. Continue reading "Stocks Are Down, Talk Of A Recession Coming! It's Time To Panic! Or Is It?"

In Life And Investing Always Remember 'Cheap Is Expensive'

Matt Thalman - INO.com Contributor - ETFs


I recently overheard a conversation of two gentlemen discussing a home remodeling project. The younger of the two was explaining how he was preparing to paint a few rooms in his home. His wife was picking out colors and he was soon going to purchase the paint and begin his project. The older of the two men listened intently and besides jokingly saying 'have fun with that project,' gave only one piece of advice, 'buy the more expensive paint.'

This comment seemed to catch the younger man off guard and he responded to the advice with, 'but the more expensive paint is nearly double what the lower priced paint is, is it really worth the extra money?' That question was answered with a simple, 'just trust me, it is in the long run.'

If you have ever painted a room you know exactly what both men in this situation are thinking. The younger guy is confused because it's just paint, I am just trying to add some color to my walls and do I really need to spend the extra money. While the older, wiser, guy is trying to save the other from a headache, time and money due to possibly having to repaint the room again down the road.

I mean seriously, it's just paint, right? Continue reading "In Life And Investing Always Remember 'Cheap Is Expensive'"

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

Matt Thalman - INO.com Contributor - ETFs


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"

3 Healthcare ETFs That Make A Complicated Industry A Lot Easier

Matt Thalman - INO.com Contributor - ETFs


With new light being shined on the healthcare industry due to the recent mega-deal between Pfizer (PFE) and Allergan (AGN), and Presidential candidates raising concerns about the prescription drug companies gouging prices, there has never been a better time to start considering an investment in the healthcare industry. Increased concerns about price gouging by biotechnology and pharmaceutical companies, has lowered the share prices of these stocks, giving you a better entry point than in the recent past.

While in the past you may have avoided the industry due to it's crowded and overly complicated companies, using Exchange Traded Funds (ETFs) can help reduce single stock risk while spreading your money out over a more diverse group of stocks.

So let's take a look at 3 Healthcare ETFs that will help you limit your risk while still investing in the healthcare sector. Continue reading "3 Healthcare ETFs That Make A Complicated Industry A Lot Easier"

Three Industries That Will Suffer From A Fed Rate Hike And Which ETFs Avoid

Matt Thalman - INO.com Contributor - ETFs


In recent weeks, the likelihood of a Federal Reserve interest rate hike has been increasing. I recently pointed out a few reason on why I believe the Fed will increase rates at the upcoming December meeting, which you can read here. I also have pointed out a few industries that would benefit from a rate hike and which corresponding ETFs that could benefit from such a move by the Fed.

So, today let's take a look at a few industries that will likely suffer from an interest rate increase and which ETFs you may want to avoid if the Fed makes a move. Continue reading "Three Industries That Will Suffer From A Fed Rate Hike And Which ETFs Avoid"