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Exchange-traded funds

Beat the S&P With Cabot ETF Investing System

January 7, 2012
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Back in September, we introduced the Cabot ETF Investing System, designed to help you make sense of the best way to invest in exchange-traded funds without losing all your allocated money. If you missed that introduction, here’s another look-see at what we’re talking about: Exchange-traded funds, or ETFs, can be one of the more attractive investment vehicles on the market today. Traded on the market like stocks, but with the relative safety afforded by mutual funds, investing in an ETF can be an attractive option for the conservative investor. Before you buy an ETF, as with any investment vehicle,...

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Two Ways to Play the Current Trend Channels

June 7, 2011
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Two Ways to Play the Current Trend Channels

The sheer preponderance of technical analysis tools can generate enough information to overwhelm an investor. An old colleague of mine habitually perused so many different indicators before making a trade that he would get analysis paralysis. He looked at too much information and wanted everything to line up perfectly. If it didn’t, he would not make the trade. Sometimes, he had so much information that he just froze. Contrarily, I try to rely on a few indicators that I’m comfortable with and that produce good results for me. One particular pattern that I use are trend channels. Trend channels...

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An ETF for Current Conditions

May 3, 2011
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An ETF for Current Conditions

Despite what I said yesterday, I’m not suggesting that you rush out and sell all of your stock holdings, nor am I suggesting that you load up on nothing but puts at this point in time. It would be prudent to take some gains off the table on any long positions you may have. It’s also not a bad idea to add some insurance in the way of puts on the main exchange-traded funds (ETF) like the S&P 500 SPDR (SPY). This would allow you to hang on to your stock holdings but have a hedge against a decline....

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Two ETFs to Hedge Your Bets

March 26, 2010
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Two ETFs to Hedge Your Bets

One of my favorite areas to invest in to protect my profits and reduce my portfolio risk is an ETF that invests in gold. SPDR Gold Shares ETF (GLD) has advanced 150% during the past five years compared to an advance of just 1% for the Standard & Poor’s 500 Index. And during the ugly bear market from October 9, 2007, until March 9, 2009, GLD was up 23.9% compared to the -56.8% drubbing that the S&P 500 took. The SPDR Gold Shares ETF seeks to replicate the performance of the price of gold bullion on a one-to-ten ratio....

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Buy ETFs to Lower Investing Risk

March 25, 2010
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Buy ETFs to Lower Investing Risk

I am a lot like many investors–as I get older, I become more conservative. When investing, I like to buy and hold, rather than try to read charts, jump in and out of momentum stocks or time the market. I envy my fellow editors at Cabot, because they enthusiastically follow the stock market to catch the next move up or avoid the next move down. They have become masters at using momentum indicators, created by Carlton Lutts (the founder of Cabot), to predict when to buy and when to sell. And the good part is that they pass along...

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