LOOK PAST THE STOCK MARKET TANTRUM $HEDJ $IBB $KBE $KRE $QLD $SMH $TBF $VVR $YCS $ZSL

Twitter
LinkedIn
Facebook

LOOK PAST THE TANTRUM $HEDJ $IBB $KBE  $KRE $QLD $SMH $TBF $VVR $YCS $ZSL

This post was just published on ZYX Global Multi Asset Allocation Alert.

The stock market in the United States is throwing  a tantrum.  Let us examine stock market’s concerns and how our model portfolios are positioned.

Euro Is Falling

The best way to profit from the falling euro is short the currency and long European equities.  There is a 12% allocation to HEDJ.  This ETF represents European stocks and is hedged against currency fall.  There is also a 8% position in EUFN which represents European financial institutions.  Further there is a 5% allocation to PSP which represents private equity.  Private equity is on the hunt for bargains in Europe.

Yen Is Weakening

The best way to profit from weakening yen is to be short the currency and be in currency hedged Japanese equities.  There is a 5% allocation to HEWJ and 3% allocation to DXJS, both represent currency hedged Japanese equities.  There is also a position in YCS which represents leveraged short yen.

Interest Rates Are Rising

There is a 6% allocation to TBF which represents an inverse ETF that goes up when interest rates go up.  There is a 5% allocation to KBE and a 5% allocation to KRE.  These are bank ETFs which benefit from rising interest rates.  There is also a 8% allocation to VVR in the Lower Risk Portfolio.  This closed end fund represents floating rate senior bank loans.  Since the interest rates are floating, typically with about 90 days lag, they adjust to higher interest rates.

Some Emerging Markets Are Being Crushed

There is a 5% allocation to EUM.  This is an inverse ETF that goes up when emerging markets go down.

See also  WEEKLY STOCK MARKET DIGEST: PRUDENT INVESTORS HEEDING EXTREME SENTIMENT

Deflation Is Coming

There is a 3% allocation to ZSL in the Low Risk Portfolio and 2% in the Lower Risk Portfolio.  ZSL is a leveraged ETF that goes up when silver falls.  If  deflation is coming, silver has a long way to go down.

Global Growth Is Slowing

The portfolios contain a number of ETFs that are on their own growth trajectories and are somewhat insulated from global growth.  These ETFs include CSD, IBB, KWEB, PKW, QLD and SMH.

What To Do Now?

Both model portfolios are positioned correctly for prevailing market conditions.  Consider continuing to hold the present positions.  Also consider initiating or adding when various ETFs dip into the buy zones specified in the  model portfolios.

 

You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence