I would like to thank everyone for all the comments, advice and input on my new website over the past month. I updated my website with several of the suggestions and have an ongoing list of all the continued emails I get. Thank you again.
Probably the most popular question I got about my new website is about the Financial Markets chart on the right side of my home page. I was repeatedly asked why I chose the ETFs I did and what are they. Below is an explanation of the ETFs I choose and why:
1 – SP500 – In my opinion, the best measure of the US economy. As the US economy grows, the SP500 should rise in price. The SP500 currently yields about 2% annually.
2 – NASDAQ – Includes over 3,000 US and non-US Technology and growth companies. The NASDAQ currently yields about 1%.
3 – Powershares DBC ETF – This ETF tracks a basket of commodity prices. As food, gas, oil, gold and other commodities rise, so will this ETF. This is a great hedge against inflation. If food and gas prices rise, this ETF will rise and offset your additional cost at the store or gas station.
4 – iShares TLT ETF – This ETF tracks the price and yield of 30 year USA government bonds. These bonds currently yield about 2.75%. The US Government “guarantees” to repay the principal of these bonds. To me, this is a measure of fear. People would buy this ETF if they do not feel US or non-US stocks will rise due to the slowing economy. Be careful though, this ETF will fall in price if interest rates rise due to inflation.
2 links I go to every week are below. The first provides a very basic overview of all the US indicies and provices general support and resistance of where the market will trend in the next week. The 2nd is a much more detailed breakdown of every US sector, all currencies, and all commodities.
Please let me know your thoughts!