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Investment Risk Re-imagined

Wed, 15 May 2013 10:36:21 -0400

Risk is fundamental to investing, but no one can agree what it is. Modern Portfolio Theory defines it as standard deviation. Tom Howard of AthenaInvest thinks investment risk is something completely different.

The Wonders of Momentum

Thu, 25 Apr 2013 10:06:30 -0400

Relative strength investors will be glad to know that James Picerno’s Capital Spectator blog has an article on the wonders of momentum. He discusses the momentum “anomaly” and its history briefly: Momentum is one of the oldest and most persistent anomalies in the financial literature. The tendency of positive or negative returns t...

How Volatile Is Your Long/Short ETF?

Thu, 25 Apr 2013 07:00:00 -0400

As correlations between international markets have steadily increased over the years, identifying non-correlated assets has become both increasingly important and difficult. In this environment, long/short investment strategies may be an intriguing opportunity, as they maintain the potential to generate positive returns even in the most challenging of economic climates. Investors who wish to access the long/short sector have a number of strong options available at their fingertips [Download Free Report: How To Buy The Right ETF Every Time]. Do These ETFs Perform in the Short or Long Term? The long/short strategy is certainly nothing new; investors have been utilizing market neutral tactics for decades, attempting to generate profits from relative mispricings regardless of whether bullish or bearish conditions exist. Originally employed using individual stocks, long/short strategies have become increasingly complex, and are now a staple of many hedge funds. But the marriage of long/short strategies and the ETF structure is a relatively [...]

Click here to read the original article on ETFdb.com.

Why Investing in Low Volatility Stocks is a Superior Strategy

Wed, 24 Apr 2013 11:19:27 -0400

In May of 2011, Invesco introduced the PowerShares S&P 500 Low Volatility ETF (SPLV). At least four more low volatility ETFs were created during 2011, including USMV, EEMV, ACWV and EFAV. Since the start of 2012 another seven such ETFs have entered the market: EELV, IDLV, PHDG, XSLV, LGLV, SMLV, and XMLV. You may wonder [...]

The post Why Investing in Low Volatility Stocks is a Superior Strategy appeared first on TradingMarkets.com.

Busted Breakout Forex Trades

Tue, 23 Apr 2013 05:38:00 -0400

Busted Breakout Forex Trades

Tue, 23 Apr 2013 05:38:00 -0400

Largest Weekly Selloff of the Year Weighs on Stock ETFs

Fri, 19 Apr 2013 14:55:24 -0400

Disappointing economic data, coupled with the tragic Boston bombing at the beginning of the week, pushed the equities market and stock exchange traded funds off their all-time highs. Despite trimming some of the losses experienced earlier in the week, the Dow Jones Industrial Average was set for a...

3 Things You Need To Know About Low Volatility ETFs

Mon, 15 Apr 2013 09:00:45 -0400

During uncertain times, investors gravitate toward lower volatility equities and ETFs, as there is generally less risk attached to these products due to their more stable price action. But even during calm and high growth times, low volatility equities and ETFs have benefits. Growth within the ETF industry now provides investors with highly liquid vehicles for accessing a basket of low volatility equities. In good times and bad, there are several reasons to consider holding a low volatility ETF in your portfolio [see Free Member Report: How To Pick The Right ETF Every Time]. 1. Low Volatility Does NOT Always Equal Low Returns There is a common misconception that buying lower volatility equities or ETFs translates into lower returns. While there are times when low volatility may not make the high gains associated with some higher volatility stocks, a low volatility ETF can actually perform as well or better than some major [...]

Click here to read the original article on ETFdb.com.

Value Stocks for Non Billionaires

Mon, 15 Apr 2013 03:53:00 -0400

Value Stocks for Non Billionaires

Mon, 15 Apr 2013 03:53:00 -0400

Daily Wrap

Wed, 10 Apr 2013 22:24:08 -0400

I don't often do this, but once in a while at important times I post analysis from our member's site, Wolf on Wall Street. This is today's Daily Wrap for April 10, 2013 posted at 10:15 p.m. I'm starting a bit later than usual because I wanted to do my due diligence on VXX because it is based on a daily rolling VIX futures of the first and second month and we have the current month

Special Report: Alternative ETFs

Tue, 09 Apr 2013 07:24:57 -0400

Alternative exchange traded fund strategies are garnering a greater following as investors look for options other than traditional beta-indexing products to diversify their portfolios. Alternative assets can be loosely defined as investments other than the traditional stocks, bonds and cash...

Low-Volatility ETFs for Emerging Markets

Sun, 24 Mar 2013 06:31:27 -0400

Low-volatility ETFs have been a hit with investors and could make even more sense for emerging markets, which are known for their higher risk and jarring price swings. With the growing interest for managing risk, investors may consider low-volatility emerging market strategies, like the iShares...

Current Market Trend & Hot Sector ETF's

Thu, 14 Mar 2013 06:35:00 -0400

Current Market Trend & Hot Sector ETF's

Thu, 14 Mar 2013 06:35:00 -0400

Dow Hits Record High – What Does That Say About the U.S. Economy?

Wed, 06 Mar 2013 08:56:44 -0500

Equity market cheerleaders got very excited about the Dow Jones Industrial Average hitting a new record high yesterday (Tuesday).

The Dow closed at 14,253.77, topping its previous record close of 14,164.53 on Oct. 9, 2007.

While it is nice to see a sign that equities are improving following the devastating shock of the financial crisis of 2008, today's Dow Jones Industrial Average is not the same index as it was in 2007.

In fact, if we look back at when the Dow Jones Industrial Average last exceeded 14,000, we'll see that the Dow seems to have less of a connection now to what is really happening in the economy than it did in 2007.

To continue reading, please click here...

Dow Hits Record High – What Does That Say About the U.S. Economy?

Wed, 06 Mar 2013 08:56:44 -0500

Equity market cheerleaders got very excited about the Dow Jones Industrial Average hitting a new record high yesterday (Tuesday).

The Dow closed at 14,253.77, topping its previous record close of 14,164.53 on Oct. 9, 2007.

To continue reading, please click here...

Generating Income with the New Put-Write ETF

Tue, 05 Mar 2013 06:30:39 -0500

ALPS Portfolio Solutions has launched a new exchange traded fund that provides investors with income through selling put options on the largest U.S. stocks with the highest volatility. The U.S. Equity High Volatility Put Write Index Fund (NYSEArca: HVPW) tries to reflect the performance of the NYSE...

How To Hedge With ETFs

Mon, 04 Mar 2013 09:00:39 -0500

ETFs have rightfully earned the approval of countless buy-and-hold investors as these financial vehicles have proven to be cost-efficient portfolio building blocks. With over 1,400 exchange traded products (ETPs) on the market, it’s also no surprise that more tactical investors and savvy traders have also embraced these instruments for their ease-of-use, transparency and unparalleled liquidity. As such, ETFs can do a lot more than offer diversified exposure; these funds can be effective in executing both simple and more sophisticated hedging strategies, helping to improve your portfolio’s risk-adjusted returns [see 101 ETF Lessons Every Financial Advisor Should Learn]. ETF Hedging Advantages Hedging is using one investment to help offset the risk of another. This strategy, when done properly, can greatly reduce the susceptibility to market fluctuations and adverse price moves. In order for a hedge to work, the “hedged” assets should move in different directions—when one falls the other rises—netting out [...]

Click here to read the original article on ETFdb.com.

Low-Volatility ETFs are Raking In Cash

Mon, 04 Mar 2013 06:30:02 -0500

Exchange traded funds that track stocks with low volatility have been a popular holding during these turbulent times, with iShares recently announcing that its line of minimum volatility ETFs gathered over $4 billion in assets. The iShares suite of low-volatility ETFs cover broad domestic and...

Investing in the Great American Hamburger

Mon, 04 Mar 2013 05:13:00 -0500

Investing in the Great American Hamburger

Mon, 04 Mar 2013 05:13:00 -0500

Chris Martenson: The Coming 40% Correction

Thu, 28 Feb 2013 16:53:37 -0500

Chris Martenson of Peak Prosperity blog warned: I don't relish the job of constantly pointing out the risks to the equity markets. But since few on Wall Street seem willing (or able) to do this, I'm "making the call" for a market correction, as enough variables have aligned to indicate a high likelihood of stocks heading downwards [...]

As Volatility Hits New Lows It Could Be Time to Sell

Fri, 22 Feb 2013 05:00:24 -0500

The average daily price volatility of stocks has fallen more than 60% since the beginning of 2013. It's the biggest straight-line drop in some 82 years.

A lot of investors are rejoicing. After all, stocks have risen an average of 17% a year when volatility is as low as it is right now, Bloomberg reports.

There is, however, a dark side to low volatility. Namely, it tends to precede powerful reversals that can wipe out investors, as was the case in 2000 and early 2008, and at other key turning points over the past 100 years.

Today, I'm going to talk a bit about what low volatility means for you in terms of upside, and also show you how to protect yourself in a downslide.

Let's start with the concept of average daily volatility itself.

To continue reading, please click here...

As Volatility Hits New Lows It Could Be Time to Sell

Fri, 22 Feb 2013 05:00:24 -0500

The average daily price volatility of stocks has fallen more than 60% since the beginning of 2013. It's the biggest straight-line drop in some 82 years.

A lot of investors are rejoicing. After all, stocks have risen an average of 17% a year when volatility is as low as it is right now, Bloomberg reports.

Today, I'm going to talk a bit about what low volatility means for you in terms of upside, and also show you how to protect yourself in a downslide.

Let's start with the concept of average daily volatility itself.

To continue reading, please click here...

A Look at Two New Low-Volatility ETFs

Thu, 21 Feb 2013 13:59:44 -0500

State Street Global Advisors is the latest exchange traded fund provider to roll out low-volatility ETFs, which have been very popular with investors who want stock exposure with some downside cushion. According to a press release, the SPDR Russell 2000 Low Volatility ETF (NYSEArca: SMLV) and the...

GOOG Soars past $800 Stocks Lift to New Highs on Light Trade

Wed, 20 Feb 2013 01:44:00 -0500

Inverse VIX ETFs Rise 170% as Volatility Hits Five-Year Low

Mon, 18 Feb 2013 07:30:47 -0500

As the rally in equities gains momentum, exchange traded funds linked to the CBOE Volatility Index, or VIX, are revealing greater complacency in the stock market, with the index on Friday hitting a new five-year low. The iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) dropped 79.1%...

Buying Stocks in a Fully Valued Market

Sun, 17 Feb 2013 21:36:00 -0500

Buying Stocks in a Fully Valued Market

Sun, 17 Feb 2013 21:36:00 -0500

How ETF Traders Can Use The VIX Index

Thu, 14 Feb 2013 09:00:12 -0500

Investors and traders alike have surely run across the Volatility Index, commonly referred to as the VIX, in headlines from time to time. Many are quick to overlook this valuable indicator since they may not understand how it works, or how to use it to help forecast stock prices. However, this so-called “fear index” offers insight into the direction of stock prices, both as a confirmation signal and to aid in predicting stock market turning points [Download 101 ETF Lessons Every Financial Advisor Should Learn]. What Is the VIX? The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) began trading in 1993, and is designed to measure the 30-day implied volatility of the S&P 500. The value is attained through calculations involving S&P 500 option contracts, which are bets based on the future value of the index [see How To Swing Trade ETFs]. The VIX moves inversely to the S&P 500 Index, [...]

Click here to read the original article on ETFdb.com.

PowerShares to List Small- and Mid-Cap Low-Volatility ETFs

Wed, 13 Feb 2013 16:39:36 -0500

After years of sharp market turns, investors have grown wary of volatility, investing in broad low-volatility exchange traded funds. Now, PowerShares is expanding its line of low-volatility ETFs with one that focuses on mid-cap stocks and another on small-caps. According to a press release, the...

China Exchange Traded Funds Investing

Wed, 13 Feb 2013 02:43:00 -0500

China Exchange Traded Funds Investing

Wed, 13 Feb 2013 02:43:00 -0500

1-Day 50+% Trade in IWM Calls

Tue, 05 Feb 2013 16:59:15 -0500

We have had a steady stream of solid 3C signals both long and short, but very short term trade signals. Even though volatility is increasing as we expected, the trades still aren't worth taking without an edge to juice up the potential returns, so we have been using weekly options-last week we went so far as to buy QQQ Calls on Thursday with an expiration of the following day, but the 3C signal

Dow 14,000: The Death of Volatility ETFs?

Sun, 03 Feb 2013 06:24:48 -0500

Exchange traded funds linked to futures contracts based on the CBOE Volatility Index, or VIX, yawned at the disappointing jobs report Friday. Even seemingly bad news couldn’t shake the bears out of hibernation and lift the VIX. The iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX)...

Become an Options Expert with OptionTiger

Wed, 30 Jan 2013 04:34:00 -0500

Become an Options Expert with OptionTiger

Wed, 30 Jan 2013 04:34:00 -0500

Investing in Women's Fashion Growth

Mon, 28 Jan 2013 02:23:00 -0500

Investing in Women's Fashion Growth

Mon, 28 Jan 2013 02:23:00 -0500

VIX ETFs Rise After S&P 500 Clears 1,500

Thu, 24 Jan 2013 13:46:33 -0500

Volatility-linked exchange traded products such as iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) bounced a little on Thursday after grinding down to fresh all-time lows to start the year. Some equity investors appeared to be hedging in the options Thursday market after the S&P...

Markets Remain Solid Ahead of Bernanke Comments

Mon, 14 Jan 2013 04:00:00 -0500

DailyFinance.com: By PAN PYLAS LONDON (AP) - The new year rally in global markets showed few signs of abating Monday though investors reined in last week's enthusiasm ahead of comments from Federal Reserve chairman Ben Bernanke. A number of stock indexes around the ... Read more

Keeping It Simple in the New Year

Thu, 10 Jan 2013 11:29:08 -0500

Barry Ritholtz at The Big Picture has some musings about portfolios for the New Year. I think he’s right about keeping it simple—but I also think his thought is incomplete.

A Closer Look at Two New Volatility-Hedged ETFs

Tue, 01 Jan 2013 06:00:36 -0500

Exchange traded funds offer investors the opportunity to diversify and hedge against market volatility with varying asset classes or even allow investors to hedge against volatility directly. For instance, the First Trust CBOE S&P 500 VIX Tail Hedge ETF (NYSEArca: VIXH) began trading a few...

Three Types of Low-Volatility ETFs

Fri, 28 Dec 2012 06:10:27 -0500

The string of financial crises in recent years has been etched on the market’s psyche. As a way to mitigate oscillations in their portfolios, investors are turning to a number of low-volatility exchange traded fund options to hedge against potential risks down the road. Low-volatility...

Trade Based on Objectivity, Not Emotion

Thu, 27 Dec 2012 19:11:15 -0500

Today was an interesting day in the market and it was an interesting day at Wolf on Wall Street our member's site. Last week, in planning ahead, we figured Thursday would be one of the most volatile days this week with Congress and the President coming back, with European markets open again and some conference calls and press conferences from the House and Senate not to mention Window

10 Worst-Performing ETFs In 2012

Thu, 27 Dec 2012 09:00:52 -0500

While most enjoyed 2012′s rather impressive track record, other not-so-lucky investors fell pray to those corners of the market most affected by the global economic slowdown. Some of the worst performers were the usual subjects, namely volatile commodities and alternative energy equities, but others might have been somewhat surprising. From the frustrating natural gas market to investments in a popular Latin American country, we outline the ten worst-performing ETFs in 2012 (Year-to-date returns as of 12/20/2012) [see also How To Pick The Right ETF Every Time]: 1. C-Tracks ETN Citi Volatility Index Total Return (CVOL), Down 90% This year’s biggest loser was CVOL, which was able to lose almost 100%. The index this fund is designed to measure directional exposure to the implied volatility of large cap U.S. stocks, but sadly for Citigroup, U.S. stocks didn’t take any major hits this year. 2. Dow Jones-UBS Coffee ETN (JO), Down 43% This [...]

Click here to read the original article on ETFdb.com.

ALPS Lists Momentum, Low-Volatility ETFs Based on Goldman Sachs Indices

Fri, 21 Dec 2012 15:04:42 -0500

With much of the traditional beta space already populated, more exchange traded fund providers are engineering passive products that follow active styles. For instance, ALPS recently launched a suite of ETFs based on Goldman Sachs’ Proprietary Indices that allocate based on market volatility....

Risk-On Risk-Off Risk Undecided

Mon, 17 Dec 2012 06:03:00 -0500

Risk-On Risk-Off Risk Undecided

Mon, 17 Dec 2012 06:03:00 -0500

News about

Investment Risk Re-imagined

The Wonders of Momentum

How Volatile Is Your Long/Short ETF?

Related Posts:

Why Investing in Low Volatility Stocks is a Superior Strategy

Busted Breakout Forex Trades

Busted Breakout Forex Trades

Largest Weekly Selloff of the Year Weighs on Stock ETFs

3 Things You Need To Know About Low Volatility ETFs

Related Posts:

Value Stocks for Non Billionaires

Value Stocks for Non Billionaires

Daily Wrap

Special Report: Alternative ETFs

Low-Volatility ETFs for Emerging Markets

Current Market Trend & Hot Sector ETF's

Current Market Trend & Hot Sector ETF's

Dow Hits Record High – What Does That Say About the U.S. Economy?

Dow Hits Record High – What Does That Say About the U.S. Economy?

Generating Income with the New Put-Write ETF

How To Hedge With ETFs

Related Posts:

Low-Volatility ETFs are Raking In Cash

Investing in the Great American Hamburger

Investing in the Great American Hamburger

Chris Martenson: The Coming 40% Correction

As Volatility Hits New Lows It Could Be Time to Sell

As Volatility Hits New Lows It Could Be Time to Sell

A Look at Two New Low-Volatility ETFs

GOOG Soars past $800 Stocks Lift to New Highs on Light Trade

Inverse VIX ETFs Rise 170% as Volatility Hits Five-Year Low

Buying Stocks in a Fully Valued Market

Buying Stocks in a Fully Valued Market

How ETF Traders Can Use The VIX Index

Related Posts:

PowerShares to List Small- and Mid-Cap Low-Volatility ETFs

China Exchange Traded Funds Investing

China Exchange Traded Funds Investing

1-Day 50+% Trade in IWM Calls

Dow 14,000: The Death of Volatility ETFs?

Become an Options Expert with OptionTiger

Become an Options Expert with OptionTiger

Investing in Women's Fashion Growth

Investing in Women's Fashion Growth

VIX ETFs Rise After S&P 500 Clears 1,500

Markets Remain Solid Ahead of Bernanke Comments

Keeping It Simple in the New Year

A Closer Look at Two New Volatility-Hedged ETFs

Three Types of Low-Volatility ETFs

Trade Based on Objectivity, Not Emotion

10 Worst-Performing ETFs In 2012

Related Posts:

ALPS Lists Momentum, Low-Volatility ETFs Based on Goldman Sachs Indices

Risk-On Risk-Off Risk Undecided

Risk-On Risk-Off Risk Undecided