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Lawrence Carrel
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Lawrence Carrel is the author of ETFs for the Long Run and Dividend Stocks for Dummies.
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ETFs For The Long Run
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ETFs for the Long Run
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  • ETF Investing Lecture On Monday

    I will be giving a lecture called "Guide to ETF Investing" this Monday, January 28, 2013, to the New York Investing Meetup group.

    This is a prepaid event and the in-person class costs $20. You must register and pay through PayPal (you can use a credit card) at: https://www.paypal.com/cgi-bi/webscr?cmd=_s-xclick&hosted_button_id=ZHARD4QPF4P94 (this URL is good for in-person attendance and not the webinar).

    Space is limited and all of this group's previous classes have sold out. Please register early.

    There is a webinar available for the class (you hear the presentation and see the slides, there is no video) and the cost is only $15. You can register for the webinar at: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=55SXFKTV644C6.

    The class will be held at the group's meeting hall at 5th Avenue and 21st Street in Manhattan. You will receive directions and at least one reminder after you have paid and registered.

    The New York Investing Meetup group offers a profitable alternative to Wall Street hype. It provides unbiased, practical stock market education and economic analysis from independent traders and successful investors. You can view their videos on You Tube at:http://www.youtube.com/watch?v=BnSltpGcKNM.

    CLASS LEVEL: Beginner/Intermediate Investor

    Tags: ETFs, Webinar, Lecture
    Jan 25 1:45 PM | Link | Comment!
  • ETFs To Buy On Outcome Of Election

    Election season always brings out the investment professionals offering advice on how to best invest for both a Republican and Democratic outcome.

    SPDR University, the ETF information arm of State Street Global Advisors released a report yesterday, Election 2012: A Time of Polarizing Politics & Heightened Uncertainty, outlining the best ETFs to hold depending who you think will win. Written by David Mazza, State Street's head of ETF investment strategy, it's no surprise that all the recommended funds comes from SPDR.

    In this low interest rate environment, high yielding equities have been a favorite among investors. Under a Mitt Romney win, Mazza expects favorable tax treatment for dividends to continue, thus companies that pay dividends would be big beneficiaries. Certain sectors and industries would also benefit under a Romney administration. Increased domestic production would help the energy sector, while less regulation would boost the metals and mining sector. A less restrictive tax environment would help that transportation industry and an increase, or at least few cuts, in defense spending would help the aerospace and defense sector.

    The ETFs SPDR suggests for a Romney win:

    SPDR S&P® Dividend ETF (NYSEARCA:SDY)
    Utilities Select Sector SPDR Fund (NYSEARCA:XLU)
    SPDR S&P Telecom ETF (NYSEARCA:XTL)
    Energy Select Sector SPDR Fund (NYSEARCA:XLE)
    SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP)
    SPDR S&P Metals and Mining ETF (NYSEARCA:XME)
    SPDR S&P Transportation ETF (NYSEARCA:XTN)
    SPDR S&P Aerospace & Defense ETF (NYSEARCA:XAR)

    Under another four years of Obama taxes are likely to rise. Mazza suggests municipal bonds to investors in higher tax brackets. If taxes rise on dividends, REITs would offer a better choice for investors seeking income. However, increased government spending could spark a rally in the infrastructure sector. The healthcare industry should also "react favorably" to the president's reelection.

    The ETFs SPDR suggests for an Obama win:

    SPDR Nuveen Barclays Capital Short Term Municipal Bond ETF (NYSEARCA:SHM)
    SPDR Nuveen Barclays Capital Municipal Bond ETF (NYSEARCA:TFI)
    SPDR Nuveen S&P High Yield Municipal Bond ETF (NYSEARCA:HYMB)
    SPDR Dow Jones REIT ETF (NYSEARCA:RWR)
    SPDR FTSE/Macquarie Global Infrastructure 100 ETF (NYSEARCA:GII)
    Health Care Select Sector SPDR Fund (NYSEARCA:XLV)
    SPDR S&P Health Care Services ETF (NYSEARCA:XHS)
    SPDR S&P Biotech ETF (NYSEARCA:XBI)

    Should the political paralysis that has gripped Washington over the past two years continue in the future, preventing major changes, Mazza suggests non-dollar denominated assets and those low to no correlation to dollar-denominated assets. This could lead to a broad move away from U.S. assets to those in high growth emerging markets. For those looking to invest in local currencies, he suggests non-US fixed income. Gold would continue to rise if countries continue to devalue their currencies to boost exports or the U.S faces another debt crisis. And with increased government spending leading to a long-term inflationary environment, assets with a real return should rally.

    The ETFs SPDR suggests for an political paralysis:

    SPDR Barclays Capital Emerging Markets Local Bond ETF (NYSEARCA:EBND)
    SPDR Gold Trust (NYSEARCA:GLD)
    SPDR SSgA Multi-Asset Real Return ETF (NYSEARCA:RLY)

    Tags: SDY, XLU, XTL, XLE, XOP, XME, XTN, XAR, SHM, TFI, HYMB, RWR, GII, XLV, XHS, XBI, EBND, GLD, RLY
    Oct 04 4:57 PM | Link | Comment!
  • FAA Pops On AMR Bankruptcy

    American Airlines filed for bankruptcy protection today and shares of AMR, its parent company, took a nose dive, plummeting 84% to 26 cents, as it too declared bankruptcy.

    The third-largest airline, in terms of traffic, whined that it couldn’t compete with the other big U.S. airlines, because they had all cut costs by declaring bankruptcy at least once during the last decade, while American had not.

    However, the entire airline industry has been funk due to higher fuel prices and an lagging economy that leaves many consumers taking fewer flights. The industry’s troubles can be seen in the 40% decline in the Guggenheim Airline ETF (NYSEARCA:FAA).  Not that this should be any surprise. A year ago, I basically declared the industry had peaked in my story Flying High With Airline Stocks.

    Surprisingly, the ETF jumped 22 cents to $25.25 on Tuesday because other airline stocks popped. It appears American’s woes could be a boon for the rest of the industry as they take over some of its routes. This move is a good example of why ETFs are better investments than single stocks. Not only did the ETF’s diversified portfolio protect it against AMR’s troubles, but by holding the entire industry, the ETF registered a gain.

    Zacks says the ETF is worth watching as the bankruptcy plays out and the competitors move in on its hubs. But I think you should just stay away. Oil prices will continue to hurt airline income statements. Not to mention the potential fallout from the European debt crisis.

    Nov 30 4:58 PM | Link | Comment!
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