While some folks thought the big drop in PC sales would send the semiconductor business into a nosedive, it's actually one of the hottest markets around the world today. Yet it still suffers from severe volatility. Here's a way investors can shield themselves from that risk.
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Listen folks, I hate to tell you this but your chance for a comfortable retirement is falling fast!
Of course, we already know pension plans have been raided, depleted, and "financially engineered" - against the laws that were supposed to protect you.
And if you think you're protected because you're a union worker, or municipal worker, or in some other job that you figured you'd put up with because you could retire well... well, those "protection" plans are all under attack, too.
In his recent State of the Union Address, President Obama unveiled something new: a retirement savings account to "help" Americans build a nest egg, coining it the "MyRA."
Something immediately felt wrong about the proposal... but I couldn't put my finger on it.
So I researched the new MyRA and found details to help you understand just how it works.
Log in to your brokerage account... Call your broker... Request a plan prospectus from your pension administrator... Jump online and review the holdings in your "target retirement" funds, ETFs, variable annuities...
Do whatever it takes to find out - today - how much exposure you have to real estate investment trusts (REITs), and mortgage REITs in particular.
Then get rid of as many of them as you can.
The Market Vectors Mortgage REIT ETF (MORT) is down 24% in less than five months. And a number of its components are down more than 30%.
But it's going to get worse. A lot worse. And that's why I'm issuing a warning, because practically every "properly diversified" portfolio in America cashes these REIT checks.
Many people depend on them.
This is dangerous, especially when two of the most widely held mortgage REITs also happen to be two of the worst.
To be sure, aside from the one (big) exception you'll see today, a longtime high-yield darling is about to get crushed...