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PowerShares S&P 500 High Beta Portfolio (SPHB)

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The U.S. bull market is turning nine dodging all the ills of economy and politics. The strength is backed by euphoria surrounding the new U.S. tax legislation, robust corporate earnings, optimism on global growth and rise in oil price.Additionally, the U.S. economy is clearly on a solid ground buoyed by an impressive labor market, rising wages, slowly rising inflation and increasing consumer spending. All these are instilling strong confidence in the stock market. When markets soar, high beta stocks experience larger gains than the broader market counterparts and thus, outpace their rivals. This is because these products seek to capitalize on continued growth with market beating returns. However, these exhibit a higher level of volatility. As a result, SPHB rises or falls faster than the plain vanilla funds in case of a trending market, making it a risky investment.

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