Seeking Alpha

Tom Lydon

View as an RSS Feed
View Tom Lydon's Comments BY TICKER:
Latest comments  |  Highest rated
  • Seeking Alpha Celebrates 500,000 Registered Users! [View article]
    What great news David! Congratulations! Your ability to offer a free forum open to sharing investment ideas tops them all. I'm looking forward to hearing when you reach 1 million!
    Jul 6 12:38 PM | 6 Likes Like |Link to Comment
  • Tom Lydon Positions For 2012: Emerging Market Stocks And Bonds Trump Developed Ones [View article]
    Hi. Thank you all for your comments.

    ETFSuperfreak, we try to keep in line with the moving average as the general indicator for when we are in or out while keeping an 8% stop-loss off the most recent highs. This way, we attempt to minimize the risk going in and keep an exit strategy in place if things go awry.
    Jan 4 03:28 PM | 3 Likes Like |Link to Comment
  • Call It a Comeback: Dividend ETFs for the Income Investor [View article]
    Cpaman, there's potential liquidity risk in low-volume funds, but you can keep your costs in check by executing trades in small batches to avoid moving the fund too much. If you're placing very large orders, alternate liquidity providers can also help you execute your trades.
    Feb 26 10:30 AM | 3 Likes Like |Link to Comment
  • VXX ETF Traders Are Gluttons For Punishment [View article]
    Hi Scoe,

    In a normal futures curve, futures with longer maturity dates have higher prices.

    As we approach the contract's maturity date, the futures price converges with the spot price.

    In a contangoed market, the futures price is above the expected spot price, and since a contract's futures price must converge on the spot price as we approach the maturity date, we would expect falling prices over time.

    In your example, if the the VIX fund sold front month contracts for $15 and bought the next month's contract for $17, the fund is essentially selling low and buying high. However, in a contangoed market, the prices are continuously falling, so the fund could be repeating its actions of selling low and buying high each month.

    For those interested in looking up the VIX futures curve, you can check out:

    Best regards,
    Apr 4 05:15 PM | 2 Likes Like |Link to Comment
  • One Month After Launch, PIMCO Total Return ETF Lives Up To The Hype [View article]

    On the PIMCO's BOND page, as of April 3, the provider shows a SEC 30-day yield of 2.57% and an estimated yield of maturity of 4.47% - BOND has an effective maturity of 6.67 years and an effective duration of 4.71 years. As of March 31, the distribution yield was 1.44%.
    Apr 4 04:32 PM | 2 Likes Like |Link to Comment
  • Vietnam ETF: An Alternative to China [View article]
    Great discussion. I appreciate hearing all of your thoughts. Make no mistake- Vietnam is still a risky country that may see some big road bumps ahead. But keep an eye on it - Asia is a fast-growing area.
    Nov 8 11:04 AM | 2 Likes Like |Link to Comment
  • ETF Trends Podcast: Metals vs. Miners ETFs [View article]
    Thanks for your feedback! We get a lot of traffic on our podcasts, but we also have a lot of information in our articles, so you can take your pick.
    Jul 15 10:24 AM | 2 Likes Like |Link to Comment
  • Bogle's Wrong: ETFs Are Better Than Mutual Funds for Long-Term Investors [View article]
    Nice job on this story Matt. There's no doubt that Jack Bogle has had an illustrious career and should be applauded for being a champion for the individual investor. However, Jack's campaign against ETFs is likened to proposing a ban on texting because it causes car accidents. Jack, spend your energy coaching investors how to properly use ETFs rather than panning them. Investors deserve a little more credit.
    Jun 12 09:41 AM | 2 Likes Like |Link to Comment
  • Tom Lydon's ETF Playbook: The Trend Is Your Friend [View article]
    We use a trailing 8% stop loss. After selling, the cash is considered "free agent" money and we look for another position that's above its 200 DMA. But if you wanted to get back in when the position goes back above the 200-day, that's an option, as well.
    Apr 28 10:28 AM | 2 Likes Like |Link to Comment
  • Two New ETFs from Global X Offer Investors Silver, Copper Miner Plays [View article]
    You can find all holdings on the provider's website:
    Apr 21 10:21 AM | 2 Likes Like |Link to Comment
  • Inverse and Leveraged ETFs: Pure Profit Plays vs. Hedging Against Risk [View article]
    Sorry you found the newsletter and stories to be a disappointment, Michael. We don't illustrate those points because it's not generally a recommended strategy. Leveraged ETFs need to be handled with care and it's not suggested that they be used for long-term, buy-and-hold use! When you do so, it's at your own risk. The providers only promise daily performance.
    Apr 13 07:02 PM | 2 Likes Like |Link to Comment
  • Playing the Chinese Yuan Battle With ETFs [View article]
    Thanks for the comments, everyone.
    Apr 8 10:24 AM | 2 Likes Like |Link to Comment
  • Russia ETFs: Emerging Illusion? [View article]
    Because we hope it generates discussion! Some economic situations aren't as cut-and-dry as others.
    Mar 5 10:20 AM | 2 Likes Like |Link to Comment
  • Long Natural Gas ETFs Burning Out [View article]

    The possibility of a cold winter ahead, coupled with below average inventory levels could help natural gas over the mid-term.

    Looking ahead, we will have to watch for broad changes in fundamentals. For instance, the country is looking into exporting energy. If we can successfully open up our natural gas stores to overseas markets, the market will naturally experience a surge in demand.

    Best regards,
    Jul 24 05:31 PM | 1 Like Like |Link to Comment
  • A High-Achieving International Dividend ETF [View article]
    Hi timcoughlin,

    Here's a recent spotlight we did on SDIV:

    SDIV provides a decent yield and exposure to attractive dividend-generating sectors. However, the fund also includes a 25% weight toward real estate, or REITs, so investors might have to be careful once interest rates begin to rise.

    Best regards,
    May 30 04:38 PM | 1 Like Like |Link to Comment