No matter how flat, volatile, or bearish the market gets, someone is always making money. As they say:
There's always a bull market somewhere.
Two critical questions investors often ask are: "Where do you find these bulls?" and "What's the best way to play them?"
The correct answers to these questions could have a sensational impact on your portfolio. Today I am going to suggest which bulls to follow, not merely for now, but more importantly for the future. That's when the real money is to be made.
- First, there is an exciting opportunity to lock in on a growing boom in consumer spending, sparked by lower gas prices and stronger confidence.
- Secondly, future European stimulus packages are likely to jump-start certain stocks.
- Thirdly, the media industry now offers extremely high gain potential as the world continues to shrink while its need for entertainment and information continues to grow.
- Fourthly, the demand for cyber security is in all-out crisis mode. Look what is happening all around us, even to giant organizations like Target, Home Depot, and Sony.
So what is the best way to play powerful trends like these?
Right now I'd like to fill you in on the single-most-asked-for investment approach among Zacks members today. In fact, I will show how to command these "Hidden Bulls". . .
- Without the extra commission fees from buying dozens of stocks.
- Without the added risk of dropping the ball on a mega-boom because a few key stocks are missed.
- And without the angst of buying one company that happens to turn sour in an otherwise soaring industry.
What makes this possible? ETFs, of course. Exchange Traded Funds. For years, I've been deeply involved in industry analysis tracking sectors and assessing how trends would affect individual stocks.
And yet one thing always seems to surprise me. So many investors believe that all it takes to make money is to buy ETFs in industries that are currently running hot.
If only it were that easy!
The truth is that even if you could accurately predict which hot industries would STAY that way the question becomes: Which specific ETFs should you buy?
As of now, there are over 1,600 of them and that number has ballooned since the first ETF was introduced in 1993. And every last one of them is unique. To take full advantage of these trends, it's important to . . .
Get aboard the right ETFs at the right time.
For example, for several months last year while the Dow ran about even...
- The commodity of coffee soared +70%.
- India small caps were +35%.
- Biotech jumped +20%.
Just imagine if you could be clued into a choice handful of spaces like these that are firing up today, and that look to outperform for months to come. Yes, there is a lot of money to be made through sector rotation. You invest in areas that are booming and then rotate out of them when they start to turn.
But which individual ETFs do you buy? This matters a great deal . . .
How should you bet on the market: SPY vs. RSP?
For example, if you believed the S&P 500 was going to swing upward and bought shares of SPY, its most popular ETF, you would have gained +21.6% in 6 months.
But suppose instead you chose RSP, which weighs each S&P stock equally and does not favor higher market caps.
Your 6-month gain would have been even greater: +26.0%.
What's the best way to invest in Japan: EWJ vs. DXJ?
The difference between two Japan ETFs was greater still.
EWJ jumped +36.9% in 6 months.
But if you instead bought DXJ which eliminates exposure to the Japanese yen, your gain would have been an explosive +63.9%.
Which move should you make on energy: PBW vs. QCLN?
And look how clean energy outpaced the market.
Buying PBW which focuses heavily on solar energy would have brought you a nice +29% gain in less than 6 months.
But QCLN with its broader approach to the sector would have catapulted by +50.1%. And look how clean energy has been outpacing the market.
Where should you look to make the most of a housing boom: XHB vs. ITB?
And the home-builder sector has been red hot as well. XHB would have gained you +18.5% in 6 months.
But wouldn't you have preferred to be in ITB, which focuses purely on home construction,
and not on retail companies like Bed Bath & Beyond?
This ETF soared +27.1%.
Announcing the Zacks ETF Investor
Those examples demonstrate why we launched a portfolio service devoted to ETFs. Our aim is to pinpoint trends with the most thrilling upside potential along with the very best ETFs to exploit them. In a roughly 12-month timeframe we'll command entire industries and sectors to provide the diversification you need to pursue substantial gains at reduced risk.
There's a bounty of almost unheard-of opportunities to explore from robotics/automation to Japanese small-cap stock funds.
Now imagine starting your quest with a performance advantage of more than 2-to-1.
Studies show that the top half of industries in the Zacks Rank outperform those in the bottom half by more than 2X over. So that's where our quest begins.
Then we consult the Zacks ETF Rank to pick the best funds in those spaces, based on asset class forecasts, expense ratios, bid-ask spreads, and other factors.
What's more, we mix in several other considerations and closely monitor new developments to catch trends on the cusp of upward movement. And I should mention that we might even buy an inverse ETF when there is an exceptional opportunity to profit from a downward trend.
Finally, after a thorough, ongoing analysis, we distill over 1,600 ETFs to 15 to 20 jewels that have rare immediate investment potential.
Unfortunately, a majority of investors will miss these trends that are ready to soar. I don't want you to be among them.
That's why what I am about to say is meant to grab your attention. It is an arrangement you simply won't find anywhere else.
So Now for the Most Amazing Part
Is this approach right for you? Will you be comfortable with its recommendations? Starting today, you can find out in a way you just can't afford to miss.
See All Long-Term Buys and Sells: One Month. One Dollar. Not One Cent of Further Obligation.
The ETF Investor is priced at $299 per year. But now you can sample ETF Investor recommendations and insights, plus every other Zacks long-term service, for a total cost of only $1. Take advantage now.
How Can We Do This?
The answer is that ETF Investor and all our other services are grounded in the Zacks Rank which has an average yearly gain of +25%. This performance has been examined and attested by the independent accounting firm of Baker Tilly Virchow Krause, LLP.*
With documented performance like that, we can well afford to offer you this unique $1 Zacks Investor Collection arrangement. We simply expect that once you sample our services, and see how well they perform, you'll want to stay with them.
And certainly, there's no better way to receive our ETF Investor buys and sells. Then, while you're doing that, you can also see what other services are best suited to your investing style and risk tolerance.
What's the catch? There really isn't one. We offer this arrangement to you because the Zacks Investor Collection serves as a showroom where you can check out any or all of its high-performance portfolios. Then you may join the ones that suit you best. Or join none of them. The choice is up to you.
Let me make a suggestion: Go ahead and explore ETF Investor plus the other portfolios packed inside the Zacks Investor Collection. Shown here is a list of all the services available to you for the next 30 days. You are invited to...
Zacks Investor Collection gives you full access to ETF Investor and all of our most valuable services:
|Home Run Investor||$299/yr||Included|
|Stocks Under $10||---||Included|
|Zacks Top 10 Stocks||$299/yr||Included|
Your Cost for 30 Days $1
Gain exclusive access to Stocks Under $10, a portfolio that's so exclusive it cannot be subscribed to directly. This service finds companies with low share prices that have vastly improving fundamentals and earnings outlooks. Then we apply the Zacks Rank and other key metrics to narrow down to those rare few stocks with the most explosive upside potential.
Sample our Home Run Investor which like Stocks Under $10 swings for the fences with great growth stocks, and is ever watchful to prevent strike outs by cutting losers and providing diversity.
Check out the Value Investor from Tracey Ryniec as she jumps aboard undervalued stocks that are just beginning to get noticed by Wall Street.
Follow Zacks Top 10 Stocks. These are the best buy and hold stocks for the year ahead hand-picked by Director of Research, Sheraz Mian.
Balance your portfolio with the Income Investor from Brian Hamilton, Investment Research Coordinator. He'll guide you to high-dividend stocks with the fundamental strength to see capital appreciation and pay even higher dividends in the future.
Look inside Zacks Confidential where our Executive VP, Kevin Matras taps one of the hot hands at Zacks to share their timely investment strategies along with their most promising 2-3 picks. This is an exclusive service and cannot be subscribed to directly.
Use Zacks Premium research from the private part of our web site to easily find your own winning stocks. You get professional-grade tools with full access to the Zacks Rank for stocks, mutual funds and ETFs. Plus in-depth analyst reports, premium screens, and our coveted Focus List of long term stock picks.
Will this be hard work? Will it be too much information? Not at all. During the next 30 days you can focus on ETF Investor while browsing the others, trying whatever captures your interest.
And then, after your $1 for 1 month trial, you have three simple choices:
- 1. Walk out of the showroom anytime you please and not pay one cent more.
- 2. Continue your Zacks Investor Collection subscription for only $59 a month.
- 3. Join just one or more of the individual portfolios.
Once again, the choice is entirely up to you.
Backed by 2 Airtight Guarantees
Don't worry, you are covered by a Satisfaction Guarantee. You may cancel up to 90 days after your trial is over. And if you feel we have not exceeded your expectations, then we will refund every last cent - including the $1 you paid for the trial. No problem.
But that isn't the half of it.
You're also backed by a full-year, money-back Performance Guarantee. Details. That means if we don't help you beat the market, we don't deserve your money.
No one else offers a combination of money-back assurances like these. That's because no one else has a proven system like the Zacks Rank that beats the market so consistently, year after year.
Don't miss out. Call toll-free 1.888.775.8348 M-F, 10 am - 6 pm ET. Outside the U.S., 1.312.265.9309.
Simpler still, click right now to get aboard.
Again, to make the most of current and future trends, it's important to get aboard the right ETFs at the right time. And don't forget that your cost for our ETF recommendations, and a great deal more, is only $1.
I look forward to welcoming you to our exciting and rewarding quest. Together we will pursue selected ETFs that hold the potential for extreme, market-topping performance at reduced risk.
CFA, FRM, Director of ETF Research