By: Joe Taylor | February 20, 2009
(bettertrades) - The exponential proliferation of Exchange Traded Funds (ETFs) provides a wealth of opportunities for investors who understand their potential. They cover an enormous range of specific investing possibilities that carry diversified risk.
So many choices can help you create a portfolio that is tax efficient, low cost and easy to implement. But, so many choices also can create tremendous confusion for investors who know that ETFs are the new frontier for investing, but don't know where to start, what to buy, and when to sell.
ETF Trends was born out of the abundant research performed by asset managers at Global Trends Investments. As professional money managers, we rely on ETFs to earn risk-appropriate returns for our clients. We know our research and findings can be of great benefit to both seasoned investors as well as those new to ETFs or investing.
With decades of experience in the financial services industry, we maintain ETF Trends to identify the advent and evolution of ETFs and their ability to serve as primary investing tools for individuals. ETF investing empowers investors to capture sectors, asset classes, and global regions to capitalize on the efficient marketplace while diversifying for risk.
Tom Lydon is president of Global Trends Investments, editor and proprietor of ETFtrends.com. With more than 20 years experience in asset management, Mr. Lydon began his career with Fidelity Investments Institutional Division prior to launching Global Trends Investments and ETF Trends. Mr. Lydon is a contributor to major print, radio and television media including Investor's Business Daily, Barron's and Bottom Line Personal. His popular seminar, ?How to Manage a Million Dollar Portfolio? has been attended by thousands of investors around the country.
Tom is also co-author of iMoney: Profitable ETF Strategies for Every Investor, which was published summer 2008. Lydon holds a BS in Management from Babson College in Wellesley, MA.
(interview with ETF Trends) -
ETF Trends began in August 2005.
As proponents of exchange traded funds in my asset management firm, we noticed a major hole in the ETF information market. We started the blog to fill that hole and provide investors with the information and tools they need to make investment decisions when it comes to ETFs.
We cover a range of information devoted solely to exchange traded funds. Our blog is a mix of current events that could affect funds, strategies, industry information and coverage of the ever-evolving ETF marketplace. ETF Trends updates at least eight times a day with a mix of stories focused on current events, various asset classes, sectors and global regions that impact the world of ETFs.
We want our readers to come away from our blog with a better sense of how ETFs work, as well as how they can incorporate them into their portfolios. Whatever information readers are seeking, our goal is for them to be able to find it on our site, and we want them to be wiser investors.
If we have a strong opinion about an issue, we will definitely express it and let our readers know what we think. We want to be a source of unbiased and trusted information; we think readers and subscribers appreciate an opinion and like being given some guidance.
I am a huge advocate of individual investors and think ETFs are the investment tool of the 21st century. ETF offerings will continue expand. I’m dedicated to continuing to educate investors about all ETFs have to offer.
I write about what I think is most important. ETFs in general interest me, and if there’s something interesting or unusual going on, we’re going to mention it. I’m also passionate about about educating investors. I’ve seen so many smart people make foolish mistakes when it comes to investing, and I’d like to have some hand in preventing that.
Yes, while we try to write on a wide range of topics, we also understand that our readers are looking for certain information more at some times than others. For example, during the commodities bubble, we increased our coverage of this sector because that’s the information we knew readers were looking for.
We do trade and watch the markets all day, overnight and prior to the U.S. open. However, given that our strategy is specific to moving averages, there is no “best” time to trade. We began trading ETFs a little more than five years ago.
ETFs are hands-down my favorite. They’re the easiest and most accessible investment tool around.
My favorite strategy is the 200-day moving average - when a fund is above it, we’re in; when it’s below that mark or 8% off the recent high, we’re out.
When our indicators dictate a trade is required.
I would recommend they think about several things: their goals, their time horizon and their risk profile. Someone in their 40s might have to be a lot more conservative than someone in their 20s. Some people like a lot of risk and thrive on it, while others don’t like it – young or old. Know your limits and act accordingly.
Many traders, even the seasoned ones, make the mistake of getting emotionally involved in their investments. If you get attached to your holdings, it will ruin you. You have to be able to let go when the time comes, and you also have to be able to not look back.
Traders could see the biggest opportunities in those areas that were the most beat-up in the downturn. For example, financials and real estate. They’re so beaten down that when a recovery begins, they’ll have a lot of room to move forward and grow. Look for the sectors that have gotten punched around.
When banks and governments get a handle on the subprime toxic paper issue is when we’ll begin to see a recovery. Seeing the bleeding stop in real estate will also be a crucial event.
When these events take place, investors will gain the confidence they need to get back into the market.
We use the the 200-day moving average.
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