The popularity of income streams at the recent Las Vegas Money show was unbelievable. Most people are interested in income strategies, and there are a lot of questions about how to achieve income through investments.
We’d like to let you know about a new investment idea to think about – these are floating rate senior loan ETFs. They are paying about 5-6% in yield, and we think they could be a good tool for your portfolio. The ticker symbols to watch are:
SNLN
BKLN
SRLN
These ETFs invest in credit from the banking industry and are tied to variable rates, so they’re not tied to the interest rate cycle. The income is paid monthly. However, remember that higher yield investments need to be watched on a daily basis, because risk is higher in these kinds of investment vehicles. Income is important, but so is protecting your portfolio.
We use a combination of mutual funds and ETFs for many of our income clients – there are so many great innovative ideas out there and it’s an exciting place to be investing right now. We love ETFs, but there’s nothing wrong with mutual funds; we like ETFs because they are lower in cost and very transparent, but sometimes mutual funds are the best way to move your portfolio forward. If you have any questions, are concerned about the risk in your portfolio or just want a second opinion on your investing strategy, please don’t hesitate to call us at 800-391-1118.
People tend to think that the most recent past will continue into the future, but we want to caution investors against rushing in with peer pressure. New bull markets are emerging, such as Japan, clean energy and natural gas, and we think that it’s really wise to look at the new trends rather than old news.
As always, education is very important to us, and we encourage you to send any questions or concerns to askdoug(at)dougfabian(dot)com and we’ll do our best to answer them on the podcast or here on the video update.
We keep hearing about bubbles in the stock market, and we want to address some of those concerns today. Three items we learned recently from Jeffrey Gundlach:
Quantitative easing not ending without negative consequences that force it to do so
Countries are debasing their currencies around the world
Global growth is slowing
Now, three items we got from Bill Gross recently:
Money is chasing risk
Bond bull market is coming to an end
Bubbles in stocks, bonds and real estate
Are there bubbles and risk out there, thanks to central bank action? Absolutely, but we think that our investors are well-prepared for the changing tides of the markets. For more information on how to become a Fabian Wealth Strategies investment client, please call our offices at 800-391-1118.
This is a podcast summary. For more information, please listen to the entire broadcast here.
At the Vegas Money Show, we thought that attendance was probably 30% higher than in the past. The event was packed! It was a great time and wonderful education opportunities for investors. If you didn’t make it out to Vegas, we’ll also be at the Money Show in San Fransisco later this year, so we look forward to seeing you there.
Let’s look at the news this week: the U.S. stock market has gone straight up for the last four weeks. On average, the stock market grows 10% per year, so far in the last few months we’ve seen 15% growth. We believe that the market is euphoric and dangerously ahead of itself. For 18 Tuesdays in a row the stock market has been up, and consumer confidence is surging. There is a wealth effect going on out there, even though the economy is not truly changing for the better.
Domestically, the Obama Administration’s recent scandals: Benghazi, AP wiretapping and the IRS targeting conservative groups, have been labeled the worst week in President Obama’s five years in office. Whatever your political opinions are on these matters, it’s good practice to see how these news items affect the stock markets. So far, President Obama’s approval rating is untouched, but it’s important to keep track of these kinds of trends and news stories.
In other economic news, Wal-Mart is having a disappointing year for sales, producer prices are going down and manufacturing looks rather dim right now in the U.S. However, with the Federal Reserve’s involvement in the markets, bad news is good news, and good news is good news, so it seems as though the stock market will just keep climbing for the foreseeable future. That said, risk is high, although we do have some investment ideas for you that we’ll talking about in the days to come.
This is a podcast summary. For more information, please listen to the entire broadcast here.
A lot of people are rushing into stocks right now, but patience is the ultimate virtue. We think that this unusual market will still pull back eventually, so don’t be fooled by the rush higher.
New bull markets are good markets to invest in right now, such as Japan, clean energy and natural gas. Getting into a new bull market is a much better place to enter the market than an old bull market (such as the U.S. right now).
We also want to encourage you to sign up for the Making Money Alert as you think about investing, and check out our five ETFs for income here.
Last week we discussed five good ETFs to watch for growth, and as promised, today we’ll offer five ETFs to look at for income investors.
BOND – low volatility in the bond market, manages risk well
IYLD – 50% exposed to fixed income, 5% yeild
AMLP – good to watch, but not a good investment right now
SDIV – international dividend ETF
EEMV – low volatility stocks in the emerging markets
We’ll be discussing these in depth at the Money Show, and we look forward to seeing you in Las Vegas this week, or having you join us on the live webcast.
As always, if you have questions about the state of your portfolio or how to use ETFs, email questions or concerns to askdoug(at)dougfabian(dot)com.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Doug is presenting live this week at the Money Show in Las Vegas. To get tickets or watch a live webcast, check out moneyshow.com
During his presentation, he’ll address the following concepts:
New (bull market) opportunities, such as:
Natural gas (FRAK and FCG are both good ETFs to watch)
Clean energy (BPW is a good ETF to watch)
Japan
He’ll also be talking about managing risk, hedging strategies and watching for new bull markets. It’s going to be a great presentation and a good Money Show, so we look forward to meeting you there!
We saw a positive week overall in the U.S. markets, although not internationally. We are seeing some volatility and we see elevated risk levels in the world right now. This market is being driven by factors that are outside the normal realm of the markets.
It seems to us that investors are nervous right now because of all the unusual market activity. The most important thing to remember is that entry point is everything, so it’s wise to be cautious and watch for the right time to enter the markets. Markets correct and reset regularly, and when they do it’s wise to be prepared and on the lookout for opportunities.
As always, if you have questions about the state of the markets, email your concerns to askdoug(at)dougfabian(dot)com and we’ll do our best to answer them either individually or on the podcast.
This is a podcast summary. For more information, please listen to the entire broadcast here.
We like to pick growth Exchange Traded Funds that are tied to some long-term cyclical positives around the world. We think that the following ETFs are either good investments or good ticker symbols to put on your watch list as you manage your portfolio.
Here are our five favorite ETFs for growth:
FRAK – small, focused on natural gas infrastructure
PBW – clean energy
VEGI – global food companies
DXJ – Japanese stocks
EEMV – conservative stocks in the emerging markets
As always, if you have questions about the state of your portfolio, how to use ETFs or market action, email questions or concerns to askdoug(at)dougfabian(dot)com.
This is a podcast summary. For more information, please listen to the entire broadcast here.
Right now, the Federal Reserve is in the market because the economy would not be able to grow without its involvement. We have a situation where interest rates are artificially low and so people are wondering what to do with their savings accounts and CDs – how do you make money on your savings without interest?
We continue to believe in the bond market for investors, but we know that it’s tempting to get into stocks because of dividend yields. Many investors are afraid of a bond market bubble and so hesitate to invest in bonds. However, we will say it again – we believe that bonds are the place to be for the majority of your portfolio.
Even if bonds do decline, you’re still getting an income stream and you are not exposed to risk and losses like in the (right now, very volatile) stock market. There are decent income streams available in the bond market, you have to be wise about what you buy and why. Also, you don’t have the downside risk in bonds that you have in the stock market.
For more information, please check out this excellent article and presentation by Jeff Gundlach. We think that he makes some excellent points and we encourage you to take this advice seriously. If you have questions about how to use bonds in your portfolio, please call our offices at 800-391-1118.
This is a podcast summary. For more information, please listen to the entire broadcast here.
