Dear Newsmax Reader: We believe the following investment report from David Frazier, editor of our new investing service called The ETF Strategist, may be of interest to you, as it contains a market forecast for a slowing U.S. Economy, falling stocks, and a flight to safety. See which ETFs David is recommending that could generate profits of 50% to 100% in the next 6 to 12 months. |
Utilities ETFs poised to
breakout as S&P 500 and Russell 2000 decline on a slowing U.S. Economy
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| ----If you want to know what 2008 holds in store, look at 2000…
----As the U.S. economy slowed, the top 10 holdings in the Dow Jones Utilities Index rose a startling 67% from March to December, while the S&P 500 and Russell 2000 took a dive. ----We're in a similar situation today, but with a much greater advantage… ----Today, we can get a 2x Exchange Traded Fund (ETF) for the Utilities Index, which would generate a whopping 134% profit on a similar index move. ----Plus, we can get 2x bear ETFs that will go up at twice the rate of decline for the S&P 500 and Russell 2000 indexes. ----That means if the Russell 2000 drops 25% in 2008, as I expect it will, the 2x ETF I'm recommending would produce a 50% profit!
----I'm David Frazier, editor of the The ETF Strategist. And I've prepared this report to help you understand the slowing economy and coming flight to quality… ----I also want to show you which ETFs are likely to capture the biggest moves in the indexes and sectors in the coming months. ----ETFs, as you probably know, are mutual funds that trade like stocks, but offer significant advantages over both stocks and mutual funds (more on this in a moment). ----Just ahead, you'll get the name and trading symbol of my current top 2x Utility ETF recommendation, which could jump 50% to 100% in just the next 6 to 12 months… ----I also want to extend an invitation to try The ETF Strategist FREE for 60 days with no risk or obligation, so you can receive all of my current ETF recommendations.
----There's a strong temptation to believe – since the S&P 500 doubled from 788 to 1564 over the past 4 1/2 years -- that stocks will just keep on rising. ----Don't be fooled. Stocks in general--especially those in the S&P 500 and Russell 2000—will be coming down. And here's why… ----The vast majority of leading economic indicators continue to trend downward. Real estate prices are still falling. And consumer spending, which accounts for 72% of the U.S. economy, is beginning to falter. ----Recent economic data suggests we are at the very end of the expansion, and may even be in jeopardy of entering a recession by early 2008 (see why just ahead). ----Even more telling… ----This is only the 7th time in the past 37 years that my highly accurate Investment Model has triggered a "sell signal" for stocks. And on the previous six occasions, the S&P 500 fell between 17 and 41 percent. ----Small-cap stocks, such as those in the Russell 2000, will fall even more, as they always do in a slowing economy. ----But here's the good news… ----While
my Investment Model is showing a sell signal for stocks in general,
it's also showing a buy signal for utilities, and some specialty ETFs
that go up when stocks go down… ----And that's why I want you to have two special reports I've just completed:
----You can download these reports FREE today...----But first, let's look at the obvious signs the economy is slowing, along with the investment sectors that could generate 50% to 100% profits in the months ahead. |
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Consumers Losing
Confidence, Tightening Purses ----Orders for the all-important durable goods; household furniture, appliances, consumer electronics, and automobiles -- have fallen significantly in recent months in response to declining consumer confidence. ----The Institute of Supply Management reported on October 1st that its Purchasing Managers' index of manufacturing activity -- a leading economic indicator fell for the 3rd month in a row. ----And just two weeks before that, the Conference Board reported that its Index of Leading Economic Indicators continued to trend lower in August.
----Note that stock prices have historically fallen sharply lower after this indicator turns negative. But not right away. Typically, stocks climb higher for a few more months -- exactly what we've seen in the market lately! ----In other words, the S&P 500 is likely to fall soon, if it hasn't already begun to slide by the time you receive this bulletin. The small-cap Russell 2000 will likely fall by an even bigger percentage ----And that opens up some big profit opportunities with select ETFs (see my recommendations just ahead). |
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Housing Market Is Worsening
----One of the biggest warnings of a potential U.S. economic downturn is the overall health of the U.S. housing market. Look here… ----On September 27th, the U.S. Department of Commerce announced the biggest decline in the median sales price of new homes since 1970, while reporting new housing starts fell to their lowest level in 12 years. ----On October 2nd, the National Association of Realtors reported that its index of pending home sales declined 22 percent in August – the biggest decline since they started collecting this data. ----Even Alan Greenspan came out of retirement to say the slumping housing market would likely get worse and could trigger "severe economic consequences." ----He said, We've seen a number of American homebuilders go through significant fire sales to get rid of their inventories at very substantial discounts." ----According to Greenspan, builders have been caught with double their usual inventories. And this glut of "housing" is causing home values to decline. That hurts all homeowners, and especially those who use their home equity as an ATM. ----A further erosion of real estate prices (something Greenspan expects to happen) will cause a slow down in consumer spending. And that would be "a very significant development," he says. ----Why? Because 15% of consumer spending comes from the "wealth effect." When consumers see their home values and stock portfolios rising, they spend more. ----But when both stocks and home prices are falling, consumer spending declines. And at 72% of the U.S. Economy, therein lies the seed of recession (see my 2x ETF that profits from this scenario). ----Of course, the Fed may have acted too late. They cut rates by 50 basis points on September 18th. And then on October 9th said… "We are now more concerned about keeping the economy ----That's fed speak for "Oops, we should've cut rates sooner, but we're on top of it now." ----Of course, this rate cut announcement triggered the typical "top of the market euphoria" that sent the major indexes to record highs recently. A clear indication investors are putting their heads in the sand, if not on the block. ----Be warned. The U.S. economy is slowing. Stocks – especially those in the S&P 500 and Russell 2000 -- will be coming down. And we could possibly see further cuts in interest rates. ----Okay, but what does all this have to do with Utilities. Plenty! |
Utilities To Be One Of The
Biggest Gainers ----By lowering interest rates, the fed won't be able to stop the economic slow down, maybe not even prevent the recession. But… ----…Lower interest rates, falling stocks, and especially the "flight to safety" will send the Utilities Index soaring! Remember, utilities go up, when interest rates come down. ----And even if interest rates were to stay the same, or just come down a little, utilities will still benefit enormously from the "flight to safety." ----The first thing you're going to see when the market cracks is tens of thousands of fund managers fleeing out of S&P 500 and Russell 2000 stocks and into the safe harbors of dividend-paying stocks, utilities and high quality bonds. ----And that means a profit windfall for shareholders of my top ETF recommendations in Mega Profit Utilities ETFs for 2008 and 5 Monster Breakout ETFs To Buy Now. ----Earlier, I promised you the trading symbol of my top Utilities ETF recommendation, and here it is… ----Pro Shares Ultra Utilities Fund (symbol UPW). This 2x ETF seeks investment results that correspond to twice the daily performance of the Dow Jones Utilities Index. ----Already the Utilities Index has moved up the ranks to the 4th-best performing sector recently, and I expect it to go even higher. ----In fact, I believe this ETF has the potential to gain as much as 100% over the next 6 to 12 months. And it carries very little stock-market related risk.
----You can download both of these reports FREE right now simply by accepting my invitation to try the ETF Strategist FREE for 60 days with no risk and no obligation. Click here to get started. |
Why Try The ETF Strategist?
----ETFs offer the safety and diversity of mutual funds, with the speed, convenience and low trading costs associated with stocks. Check these advantages...
----And today, with more than 500 ETFs covering every major index, sector, and industry- and more coming every day - there is simply no better investment vehicle to capture the big moves, wherever they might be. LOOK HERE... ----The iShares DJ Aerospace & Defense Index rose 41% in 12 months on the war effort... ----...iShares MSCI Canada Index Fund (EWA) climbed 37% from
mid 2006 to mid 2007, while iShares S&P Global Materials Index Fund
(IYM) rose 26%. Why? Because of soaring demand for industrial goods and
commodities. ----Do you see the advantage of using ETFs to capture the biggest moves, just as they are emerging? Sure. And the above examples are exactly the kinds of opportunities you'll get as a subscriber to The ETF Strategist! ----To download your FREE reports with all of my current top ETF recommendations, plus receive your 60-Day FREE TRIAL to The ETF Strategist, click here. ----Or to learn more, read on... |
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Professional Research, And
Analysis For Individual Investors ----For decades institutional investors have routinely beat the market by investing in the "right sectors at the right time." ----By contrast, most individual investors have taken high risks when chasing yesterday's stock winners, or settled for mediocre returns with a buy-and-hold strategy in under performing mutual funds. ----But now some investors are getting smart... ----With The ETF Strategist YOU CAN KNOW which sectors are about to take off, and which ones are about to tank. And you can get the ETFs best positioned to capture these significant moves. ----My mission at The ETF Strategist is to identify the ETFs poised to break out. The ones entering the "sweet spot" of exceptional growth. Those destined to be the top performers in the next 3, 6, and 12 months! ----Let me show you how I identify tomorrow's biggest winners, and then I'll show you more great ETF opportunities for 50% to 100% profits in the months ahead. ----(Note: if you're the impatient type and don't care to know my methodology, just skip ahead to the subhead, Five Monster Breakout ETFs to Buy Now). |
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How I Find Tomorrow's
Biggest Winners ----I use three proprietary investment models to select the top-performing ETFs in The ETF Strategist -- an Asset & Sector Allocation Model, a Sector & Industry Relative Performance Model, and an ETF Comparison Model. ----My Asset & Sector Allocation Model identifies the current stage of the business cycle and forecasts which asset classes and economic sectors are likely to perform best in the next 3 to 6 months. ----This model consists of 97 financial and economic variables, and 13 investor sentiment indicators. And, in addition to processing a vast amount of U.S. economic data, this model looks at the economic growth, inflation and interest rates of many foreign countries and regions. ----Basically, it tells us whether or not to invest in ETFs comprised of stocks, bonds, commodities, precious metals, or real estate, as well as sectors such as basic materials, financial, or healthcare, or countries such as China, India, or Brazil -to name just a few. ----Next, my Relative Performance Model ranks the price performance of the major economic sectors (and 130 industries within those sectors) relative to all the others, and does so over the most recent one-week, one-month, and three-month periods. ----This is a momentum model that identifies the sectors and industries that have recently been improving in performance, and are likely to continue to move up in rank. It also reveals the opposite those sectors and industries that are falling back. ----With the first two models, I can pinpoint those sectors and industries not only likely to do well in the next 3 to 6 months but that are moving up and showing recent strength. And, conversely, those showing weakness, which will become candidates for the bear ETFs. ----Then, once I know which asset classes, economic sectors, and specific industries are likely to be the top performers in the coming months, all that remains is to choose the best ETFs within those market segments. ----My ETF Comparison Model helps me to analyze every ETF with significant holdings in our target market segments, comparing their historical performance records during various market environments, and thus determining which ones will likely produce the best risk-adjusted results for our purposes. ----Okay. That's what goes into every recommendation I make in The ETF Strategist. And remember, with both bull and bear ETFs available to us today, we can profit in both directions. And even get 1.5 and 2 times the return on many indexes and sectors. ----It's just a great time to be using ETFs. And you'll find no better source for ETF recommendations than The ETF Strategist. ----To get your 60-Day FREE TRIAL and free download of Mega Profit Utilities ETFs for 2008 and 5 Monster Breakout ETFs to Buy Now, just click here. ----Or...to see what my models are saying now, and what kind of ETFs are destined to be the top performers in the months ahead, read on... |
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Five Monster Breakout ETFs
To Buy Now
----Okay. As you can see, there's plenty of money to be made in the next 3, 6, and 12 months. Even 50% to 100% profits! And you'll learn all in your FREE REPORTS, which you can download now: click here. ----But most important, I hope I've done a good job today of warning you about the problems ahead, alerting you to the best profit opportunities, and showing you how ETFs can play a key role in your portfolio. ----ETFs are easy to use, and you can make money whether stock prices are going up, down, or sideways. You can also protect your portfolio against losses when other investors are losing their shirts. ----What's more, you can use ETFs to construct a conservative portfolio, a moderate portfolio, or an aggressive one. And virtually every asset class, sector, industry, country or region is available to you - many at 1.5 and 2 times the return. ----All you need is to succeed is expert guidance. And that's where I come in... |
Get your 60-Day No-Risk
FREE TRIAL NOW! ----To get all the key facts about our economy, which ETFs will post the biggest returns in the months ahead, plus ongoing expert buy-hold-sell advice… ----I urge you to try a No-Risk 60-Day FREE TRIAL to The ETF Strategist today! ----There's No Obligation: If at any time during your 60-Day FREE TRIAL you decide ETF Strategist is not for you, simply cancel with no obligation – and no money spent! ----But if you discover, as hundreds of Newsmax readers have, that ETF Strategist is your best guide to profitable ETF investing, do nothing and you can remit just $249 for a full year's subscription, or $34.95 per month if you prefer convenient monthly billing. ----Wow! You can't beat that offer, so give The ETF Strategist a FREE TRY. With 50% to 100% profits ahead, you'll be glad you did. To see everything you'll receive Sincerely, David Frazier |
