When the Fed's "no taper" surprise sent stocks soaring to new all-time highs, it also sent bond yields plunging and bond prices soaring, as traders scrambled to cover short positions.
In fact, Treasury bonds had their biggest daily price gain in more than two years on Wednesday, Sept. 18, the day the Fed let the air out of the taper expectations. And while a drift lower in long-term interest rates (i.e., bond yields) could continue for a bit longer, there is no doubt that over the course of the next year, interest rates will rise.
So here's the smartest thing you can do right now:
Take advantage of the rally in bonds by selling bonds... and any of the "bond proxies" listed below, including utilities. Then, move the proceeds into one of the four investments I'm about to show you.
They'll give you much better long-term growth potential. And they'll send you a ton of cash, too - up to $850 a month, depending on how much money you put in.Here's what makes these "specialty funds" so special...
"Ultra" ETF Investing: The Newest Portfolio Killer
Exchange traded funds (ETFs) have changed the face of investing for individuals as well as institutions.
These relatively new investment tools have made it easier to play sector rotations, go short the market or even leverage positions.
Yet at this point in the market cycle, this leverage becomes a double-edged sword for a particular set of ETFs: the Ultra set.
You see, investors like me who adopt a macro, top-down approach often want to use ETFs to take a position on an enticing sector.
Having made that decision, we're then tempted by Ultra ETFs, which offer us the possibility of 2x or 3x our gains.
Resist the temptation.
Investing In ETFs: How Exchange-Traded Funds Can Save You Money
High commissions and management fees, along with taxes, can really cut into your returns.
That's where exchange-traded funds, or ETFs, come in. In today's investment world, ETFs are cheaper and more tax-friendly than mutual funds.
The average expense ratio for U.S.-listed ETFs is 0.4%, compared with 1.42% for diversified U.S. stock funds.They also give you exposure to an entire industry or market with the click of a mouse.
It's one of the reasons why exchange-traded funds are quickly becoming the investment of choice for investors seeking broad market exposure.
In fact, the number of ETFs has surged over 10-fold in the last decade.
The total number of ETFs in the market grew to 1,114 by October 2011, with assets over $1 trillion, according to the Investment Company Institute.
And the ETF market will expand to roughly $3.1 trillion by 2016, according to projections from the Financial Research Corp. in Boston.
So if you're looking to diversify your portfolio and save money doing it, ETFs may be the way to go.
Here's a primer on how ETFs can work for you.
To continue reading, please click here...
Four Reasons to Invest in ETFs – And Five Ways to Get Started
A mere 15 years ago, selecting the right exchange-traded fund (ETF) was no big challenge. That's because the first ETF wasn't introduced until 1993, and the second didn't follow until 1995. Since then, however, the growth rate among these versatile investment vehicles has been exponential - so fast, in fact, that the monitoring firm Morningstar now tracks the performance of 854 ETFs, with new funds being added almost weekly.
So, from this mushrooming roster of new ETFs - now covering virtually every market sector, both domestic and international - how do you select the right one (or, more likely, ones) for your portfolio?
If you're not already familiar with ETFs, here are four reasons why you should consider adding some balance to your portfolio.
Money Morning Mailbag: With Many Ways To Hold It, Investors Need To Get Their Hands on Silver
A couple weeks ago, Money Morning Guest Writer Jack Barnes examined the last major commodity to enjoy a true price breakout: silver.
Barnes detailed why silver is poised for a breakout, based on its current price surge underway in India, the price run up of gold - a leading indicator of silver prices - and the fact that the white metal has yet to set a new nominal record price in U.S. dollars.
Barnes outlined the actions investors should take to involve silver in their investment plans, offering three strategies: physical acquisition and accumulation, exchange-traded funds (ETFs) and stocks, and options on futures.