Skip to main content

UCS ETF update: previous-trading-session hangover

I tuned into the House Budget Committee Webcast, Challenges Facing the Economy: The View of the Federal Reserve. It was very interesting, with serious accusatory questioning by some committee members. However, Mr. Bernanke handled himself well. I came away with a few positives and many negatives such as: inflation is not a problem yet, the probability of deflation has decreased, the Fed's borrowing is lower today than in the past, and so far the stimulus money has been effective in infrastructure spending and transfer payments.

However, the threat of a recession relapse is still possible, higher medical cost and social security depletion, caused by baby boomers retiring, could be problem sooner than later, and taxes may have to be increased to balance the budget. Since this is not an economic analysis blog per se, detailed analysis of the Chairman's statements will be left to another blog or person. What Mr. Bernanke testimony meant for me as a financial advisor going forward is that it's still going to be a rough ride ahead, so please adjust your portfolios accordingly.

On that note, the ProShares Technology Fund traded over 221,000 shares closing at $30.40 per share. I thought this was a little interesting, between 12 pm and 2 pm today shares traded on the fund was practically nil. I wonder what that was about? I still think the fund is a buy but you should be buying on market dips and not fund dips.

06/03/09 06:15 PM

If you are interested in trading this fund, would like a prospectus or have a question concerning this fund call me for a free no cost consultation at 770-572-2715. Please note: You should seek professional advice before implementing any of the strategies discussed herein, since: (1) The strategies are general in nature and will not apply to every situation; (2) Other opportunities may be better suited to your particular needs; and (3) The rules and regulations are constantly changing.

Comments

Popular posts from this blog

Portfolio Update

By Rick Walter I have posted a new Biotechnology portfolio . It's total return as of November 25, 2009 is 3.4%. However, to download and use it you will have to subscribe to the portfolio, of course. On an important note, I consider each portfolio to be well diversified in its particular sector but I've recently decided to add stock futures and options positions to each portfolio which will increase each portfolio's return but lower the risks going forward.

Morning Update

By Rick Walter Still working on putting together a strong biotech portfolio. Here is a good general article on the state of the biotech industry that was posted yesterday on the online Wall Street Journal's site- Biotech Stocks Hot Right Now, Ho-Hum in the Long Run.

Diversification and Risk

I am always trying to come up with new combinations of investments for the next exciting portfolio. Lately, I've been sort of stuck. The norm would be to build something like a QQQ portfolio , a Russell 1000 , or a Russell 2000 portfolio , maybe even a Mid-Cap or Small-Cap portfolio . Boring stuff if you think about it. I could get a little radical and try to build a pop culture type theme portfolio like the Sopranos portfolio , the Donald Trump portfolio - "your fired", or the Obama vs. Dick Cheney portfolio - a long/ short portfolio of course, with lots of defense stocks on the Cheney side of the portfolio. How about a Weapons of Mass Destruction portfolio - that would be a derivatives based portfolio with lots of CMOs'- sub-prime mortgages in the mix. Heh-heh-heh! We could really get creative and produce some wonderful stuff, but I don't know if they would make any money. Or maybe, I could build a portfolio such as a moderate Mid-Cap portfolio and just give it...