Tuesday, January 08, 2008
(Stock) Buyer Beware!
Markets proved again today (January 8, 2008) why this is a time for extreme caution. Risk is high. Watch out for a snap-back rally of a few hundred points. Do not be fooled into thinking it is a sign that that the correction is over. Instead, use it as a selling opportunity for your long positions.
I am a big fan of ETF's or Exchange Traded Funds. Now is the time to consider using them as a substitute for shorting stocks. For example, by buying DOG, you will have performance similar to having shorted the thirty Dow Jones stocks. It is neat, simple, quick, and relatively painless through your regular brokerage account.
You can Google 'ETF' and find lots of information on a wide variety of ETF's, both long and short.
I am a big fan of ETF's or Exchange Traded Funds. Now is the time to consider using them as a substitute for shorting stocks. For example, by buying DOG, you will have performance similar to having shorted the thirty Dow Jones stocks. It is neat, simple, quick, and relatively painless through your regular brokerage account.
You can Google 'ETF' and find lots of information on a wide variety of ETF's, both long and short.
Labels: ETF, investments, stock market
¶ 10:40 PM
