Sunday, May 2, 2010

Equities or Fixed Income?

This week I am introducing a new feature: one ETF worth considering and one I think you should be avoiding. I'll cover a wide range of ETFs including broad market, sector, country, currency and commodity, usually comparing two within the same theme.

This week I decided to address the broad market. We've seen an increase in volatility the past couple weeks and with increased volatility comes increased fear.

Consider: PowerShares QQQ (QQQQ) The QQQQ is one of the stronger market ETFs right now and has held up relatively well over the past two weeks. The first area of concern is 48.75, then 47.50. At 45 we concerned going forward. Know your risk level and evaluate accordingly.

Avoid: iShares Barclays 7-10 Year Treasury Bond Fund (IEF) The Treasury Bond market has been and continues to be weak. While in times of volatility money tends to flow to bonds, at this time there is no indication of Treasuries taking a position of leadership.

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