Thank You and Investing

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.

Investopedia Overview

David Fry Detailed Analysis

Please let me know your thoughts!