Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

5 ETF Plays For Doomsday Predictions

Wed, Apr 4, 9:15 AM ET, by Michael Johnston

Investors have seemingly brushed aside looming debt woes on both sides of the Atlantic ocean as improving growth expectations have helped pave the way higher for equity markets around the globe. Bullish momentum has undoubtedly prevailed on Wall Street thus far in 2012, although many are fearful that a steep market correction is just around the corner. Economic data releases have been encouraging over the past few months, however weakness in the housing and labor markets continues to be a major drag on the recovery efforts at home [see also Doomsday Special: 7 Hard Asset Investments You Can Hold In Your Hand].

The million dollar question that investors are asking themselves is whether to jump aboard the bull-train or stand back in
anticipation of a derailment in the foreseeable future? Remember that the trend is your friend; calling the top on a bull market can be wildly profitable, however, more often than not, investors are better off buying on the dip rather than making speculative bets. Nonetheless, bearish sentiment is still looming and profit taking pressures could strike unexpectedly.

File:Rolling-thunder-cloud.jpg

In a recent article at MarketWatch.com, author Wallace Witkowski takes a closer look at what prominent doomsayers are predicting for Wall Street. The article covers economic commentary and recommendations from five well-known investing gurus with a proven track record.

As such, below we highlight five ETFs that coincide well with the doomsday predictions outlined in Witkowski’s article:

1. ProShares UltraShort Barclays 20+ Year Treasury (TBT)

Peter Schiff, perhaps best known for calling the most recent financial crisis, is anything but optimistic when it comes to fixed income investments. In fact, he believes that bonds are the worst investment one could make right now, seeing as how this inflated asset class has yet to be crushed. Schiff is bearish on holding cash as well, given the looming threat of inflation, which he believes is inevitable.

TBT offers a way for investors to make a bet against long-term U.S. Treasuries without having to take on the risks associated with a traditional short position. This is by far the most popular inverse leveraged bond ETF on the market; TBT has accumulated an impressive $3.8 billion in assets under management since launching in April of 2008. The leveraged exposure of this ETF is reset on a daily basis [see How To Play A Treasury Bubble With ETFs].

2. AdvisorShares Dent Tactical ETF (DENT)

Harry Dent Jr., who is renowned for his economic forecasting through the use of demographics, also resides in the bear camp. Dent is known for accurately predicting Japan’s decline through the 1980s and the economic boom in America during the 1990s. What’s worrisome are some of the predictions he is making today; he believes that the younger generation of consumers (coupled with an aging baby boomers population) will not be able to fuel organic economic growth going forward [see also Baby Boomers ETFdb Portfolio].

Investors who are compelled by the Dent Method, which is a long-term forecasting tool based on demographic trends, should take a closer look at DENT, as this actively-managed ETF is run by Harry Dent Jr., the doomsayer himself. This fund uses the proprietary Dent Method to gauge consumption spending habits in order to determine target allocations. DENT is diversified across several asset classes, including cash & equivalents, currencies, equities, and fixed income securities; recent top holdings included the iShares TIPS Bond Fund (TIP), PowerShares DB USD Index Bullish (UUP), and the Dow JHones U.S. Utilities Index Fund (IDU).

3. JPMorgan Alerian MLP Index ETF (AMJ)

Dr. Shilling, a well known economic consultant and prominent financial analyst, is also worried that the U.S. consumer is tapped out. Shilling has stated, "If the consumer pulls back, there's nothing else in the economy that can sustain growth, and if the consumer retrenches we have a recession”. His approach to combating this harsh reality entails a focus on high dividend paying stocks, with a particular interest for North American companies with natural-gas pipelines operations [see Dividend ETF Investing: Four Critical Factors To Consider].

AMJ coincides quite well with Shilling’s preference for dividend paying securities and a favorable outlook for the energy sector; this ETN holds a basket of MLPs, which are utility-like companies that operate pipelines and storage tanks necessary for the transport of oil and gas products. AMJ has attracted just over $4 billion in assets under management since launching in April of 2009, showcasing the sheer demand for exposure to the dividend-paying MLP asset class [see MLP ETFs: Fact And Fiction].

4. AdvisorShares TrimTabs Float Shrink ETF (TTFS)

Charles Biderman, the head of TrimTabs Investment Research and portfolio manager of TTFS, is surprisingly bullish on equities, although he foresees a major market correction once the Fed ceases quantitative easing and raises rates. Biderman is predicting for momentum to slow down considerably on Wall Street throughout the second half of 2012 [see also 3 ETFs For The End Of Operation Twist].

TTFS has amassed close to $9 billion in assets under management since launching recently in November of 2011. This actively-managed ETF is run based on extensive historical research from TrimTabs; from an allocation perspective, TTFS is tilted towards the consumer discretionary and information technology sectors [see also TTFS Fact Sheet].

5. Guggenheim Enhanced Ultra-Short Bond ETF (GSY)

The last of the doomsayers, Robert Prechter, is by far the most bearish one from the bunch. Pretcher feels that both investors and consumer are tapped out, deeming the run-up seen on Wall Street as a classic bear market rally. He recommends that investors avoid all major asset classes, including stocks, bonds, commodities, and even precious metals [see also Seven Reasons To Hate Gold As An Investment].

In light of this pessimistic outlook, we feel that a conservative money market ETF like GSY makes for an appealing investment. This actively-managed ETF focuses on short-term, investment grade debt securities. GSY’s underlying portfolio has an average duration of about two months; this means that the fund is exposed to virtually no interest rate risk, making it a viable tool for those looking to preserve cash but are worrisome of a potential hike in interest rates [see also Money Market ETFs In Focus: MINT vs. GSY].

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing. Photo courtesy of John Kerstholt.


SDI Glossary: "Asset" Definition
SDI Glossary: "Bond" Definition
SDI Glossary: "Bubble" Definition
SDI Glossary: "Bullish" Definition
SDI Glossary: "Dividend" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "the Fed" Definition
SDI Glossary: "iShares" Definition
SDI Glossary: "Money" Definition
SDI Glossary: "Short" Definition
This Article's Word Cloud:   DENT   Dent   ETFs   Index   Shilling   Street   TTFS   This   TrimTabs   Wall   actively   also   article   asset   assets   bearish   believes   billion   cash   consumer   dividend   economic   from   growth   have   interest   investment   investors   known   launching   looming   major   make   making   managed   management   market   most   paying   predicting   recent   securities   since   term   that   this   under   well   which   with

| More

St Jude Medical Takes Over #112 Spot From EQT
Fri, Aug 28, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

DVY, CME, KMB, CLX: Large Outflows Detected at ETF
Fri, Aug 28, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: DVY, CME, KMB, CLX Exchange traded funds (ETFs) trade just ...

VCR, F, TWC, TGT: Large Outflows Detected at ETF
Fri, Aug 28, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VCR, F, TWC, TGT Exchange traded funds (ETFs) trade just ...

RSP, CB, TE, CCE: ETF Outflow Alert
Fri, Aug 28, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: RSP, CB, TE, CCE Exchange traded funds (ETFs) trade just ...

VGK: ETF Outflow Alert
Fri, Aug 28, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VGK Exchange traded funds (ETFs) trade just like stocks, but ...

Utilities Select Sector SPDR Fund Experiences Big Inflow
Fri, Aug 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XLU, NEE, D, SO Exchange traded funds (ETFs) trade just ...

GDX, GG, FNV, NEM: Large Inflows Detected at ETF
Fri, Aug 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: GDX, GG, FNV, NEM Exchange traded funds (ETFs) trade just ...

JNK: Large Outflows Detected at ETF
Fri, Aug 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: JNK Exchange traded funds (ETFs) trade just like stocks, but ...

14.7% of FRAK Holdings Seeing Recent Insider Buys
Fri, Aug 28, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Unconventional Oil & Gas ETF (FRAK) ...

LMT a Top 25 Dividend Giant With $2.51B Held By ETFs
Fri, Aug 28, 8:34 AM ET, by ETF Channel

Lockheed Martin Corp. (LMT) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Google Takes Over #2 Spot From Berkshire Hathaway
Thu, Aug 27, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

IEI: Large Inflows Detected at ETF
Thu, Aug 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IEI Exchange traded funds (ETFs) trade just like stocks, but ...

IVW, NKE, BIIB, KMI: Large Outflows Detected at ETF
Thu, Aug 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVW, NKE, BIIB, KMI Exchange traded funds (ETFs) trade just ...

Vanguard Total Bond Market ETF Experiences Big Inflow
Thu, Aug 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: BND Exchange traded funds (ETFs) trade just like stocks, but ...

DGRW, AAPL, MO, MCD: Large Inflows Detected at ETF
Thu, Aug 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DGRW, AAPL, MO, MCD Exchange traded funds (ETFs) trade just ...

RTH Crosses Above Key Moving Average Level
Thu, Aug 27, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the Retail ETF (RTH) crossed above their 200 day ...

10.6% of FAB Holdings Seeing Recent Insider Buys
Thu, Aug 27, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Multi Cap Value AlphaDEX ...

Why Analog Devices is a Top Socially Responsible Dividend Stock (ADI)
Thu, Aug 27, 9:24 AM ET, by ETF Channel

Analog Devices, Inc. (ADI) has been named a Top Socially Responsible Dividend Stock by Dividend ...

NextEra Energy a Top 25 Dividend Giant With 3.03% Yield (NEE)
Thu, Aug 27, 9:24 AM ET, by ETF Channel

NextEra Energy Inc (NEE) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Cincinnati Financial a Top Ranked SAFE Dividend Stock With 3.5% Yield (CINF)
Thu, Aug 27, 9:24 AM ET, by ETF Channel

Cincinnati Financial Corp. (CINF) has been named to the Dividend Channel ''S.A.F.E. ...

Shares of STIP Now Oversold
Wed, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares 0-5 Year TIPS Bond ETF (STIP) entered ...

IBMG Makes Notable Cross Below Critical Moving Average
Wed, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iBonds Sep 2018 AMT-Free Muni Bond ETF (IBMG) ...

IEF Makes Notable Cross Below Critical Moving Average
Wed, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares 7-10 Year Treasury Bond ETF (IEF) crossed ...

MBB: Large Outflows Detected at ETF
Wed, Aug 26, 12:34 PM ET, by ETF Channel

Symbols mentioned in this story: MBB Exchange traded funds (ETFs) trade just like stocks, but ...

VNQI, BOXC, FENG, XIN: ETF Inflow Alert
Wed, Aug 26, 12:34 PM ET, by ETF Channel

Symbols mentioned in this story: VNQI, BOXC, FENG, XIN Exchange traded funds (ETFs) trade just ...

VWOB: ETF Inflow Alert
Wed, Aug 26, 12:24 PM ET, by ETF Channel

Symbols mentioned in this story: VWOB Exchange traded funds (ETFs) trade just like stocks, but ...

IWB, DIS, UNH, WMT: Large Outflows Detected at ETF
Wed, Aug 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: IWB, DIS, UNH, WMT Exchange traded funds (ETFs) trade just ...

PSQ: ETF Inflow Alert
Wed, Aug 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: PSQ Exchange traded funds (ETFs) trade just like stocks, but ...

UPRO: ETF Inflow Alert
Wed, Aug 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: UPRO Exchange traded funds (ETFs) trade just like stocks, but ...

VEA, ATE, HQCL, MFD: Large Inflows Detected at ETF
Wed, Aug 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VEA, ATE, HQCL, MFD Exchange traded funds (ETFs) trade just ...

HD a Top 25 Dividend Giant With $4.85B Held By ETFs
Wed, Aug 26, 10:34 AM ET, by ETF Channel

Home Depot Inc (HD) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Shares of REZ Now Oversold
Tue, Aug 25, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Residential Real Estate Capped ETF (REZ) entered ...

XLV, GILD, AGN, AMGN: Large Outflows Detected at ETF
Tue, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: XLV, GILD, AGN, AMGN Exchange traded funds (ETFs) trade just ...

VCSH: Large Inflows Detected at ETF
Tue, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VCSH Exchange traded funds (ETFs) trade just like stocks, but ...

Vanguard Long-Term Corporate Bond ETF Experiences Big Inflow
Tue, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VCLT Exchange traded funds (ETFs) trade just like stocks, but ...

XHB, TPX, USG, OC: ETF Inflow Alert
Tue, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: XHB, TPX, USG, OC Exchange traded funds (ETFs) trade just ...

ACWI, JNJ, JPM, GE: ETF Inflow Alert
Tue, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: ACWI, JNJ, JPM, GE Exchange traded funds (ETFs) trade just ...

Apple a Top Socially Responsible Dividend Stock With 2.0% Yield (AAPL)
Tue, Aug 25, 9:14 AM ET, by ETF Channel

Apple Inc (AAPL) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

Why Apple is a Top 25 Dividend Giant (AAPL)
Tue, Aug 25, 9:14 AM ET, by ETF Channel

Apple Inc (AAPL) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

Shares of PBE Now Oversold
Mon, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the PowerShares Dynamic Biotechnology & Genome Portfolio ETF (PBE) ...

iShares U.S. Aerospace & Defense Getting Very Oversold
Mon, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the iShares U.S. Aerospace & Defense ETF (ITA) entered ...

PowerShares Aerospace & Defense Portfolio Getting Very Oversold
Mon, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the PowerShares Aerospace & Defense Portfolio ETF (PPA) entered ...

EWD Crowded With Sellers
Mon, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the iShares MSCI Sweden ETF (EWD) entered into oversold ...

FSZ Crosses Critical Technical Indicator
Mon, Aug 24, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the First Trust Switzerland AlphaDEX Fund ETF (FSZ) entered ...

Shares of XBI Now Oversold
Mon, Aug 24, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the SPDR S&P Biotech ETF (XBI) entered into oversold ...

Shares of IYR Now Oversold
Mon, Aug 24, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the iShares U.S. Real Estate ETF (IYR) entered into ...

First Trust United Kingdom AlphaDEX Fund (FKU) Enters Oversold Territory
Mon, Aug 24, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the First Trust United Kingdom AlphaDEX Fund ETF (FKU) ...

McGraw Hill Financial Achieves #102 Analyst Rank, Surpassing PVH
Mon, Aug 24, 1:44 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

EWU: ETF Outflow Alert
Mon, Aug 24, 12:44 PM ET, by ETF Channel

Symbols mentioned in this story: EWU Exchange traded funds (ETFs) trade just like stocks, but ...

XLI Crowded With Sellers
Mon, Aug 24, 12:44 PM ET, by ETF Channel

In trading on Monday, shares of the Industrial Select Sector SPDR Fund ETF (XLI) entered ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

5 ETF Plays For Doomsday Predictions | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.