Using Etfs Can Help Diversify Your Portfolio in a Helpful Way

  a day ago at Macroaxis 
By Nathan Young

An item that many people hear about but are unsure of are ETF’s, which are exchange traded funds. They work similar to mutual funds in there are underlying assets that back the product, but these are traded on the open market and can be traded like a stock. ETF’s allow investors to gain exposure to certain market sectors they otherwise might have trouble entering... [more]

 fundamentals other   select sector spdr state street global advisors financial

Taking a look at the ETF, the first thing you want to do is look at what the fund holds and dissect the top few holdings to gain an understanding of their health. If you want to be extra careful, look at the top 10 holdings. After you’ve looked at the holdings, you can begin looking at the larger picture to better understand where these individual companies are headed, which will have a pull on the ETF. All of these work together in determining the direction of the ETF as a whole.

Now, taking a look at the chart using the monthly time frame, we can see that price is approaching the pre-recession highs. Now, you have to look at the sector as a macro picture and micro. The micro will be achieved when you look at the top holdings of the ETF, but the macro is the economic conditions such as interest rates and the strength of the dollar. Using those can determine where the stock could continue to go, but it is not as straight forward as a normal equity.

Investing Education

  over three months ago at Macroaxis 
By Rich Kambak

QUADRUPLE WITCHING DAY FREAKY FRIDAY DECEMBER 16 2016

This Friday the last of four Quadruple Witching Days will occur. The previous months were March, June, and September. This is when three related classes of options and futures c...

 education finance   macroaxis
  over three months ago at Macroaxis 
By Marco The Editor

Interest Rates Will Continue to Influence the Price of Energy Going Forward

Over the past several years there has been a boon in fracking for oil. It has become far easier and less expensive to extract oil out of difficult-to-reach rock beds. Supply has...

 education mining   macroaxis
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