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ETF Trend Trading - An Effective Way To Achieve Success

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ETF Trend Trading - An Effective Way To Achieve Success

Sat, 08 Aug 2009 02:16:00 +0000

Commodity ETFs seem to be doing well, but farming ETFs are doing better than well. Over all of the exchange traded funds on the market one in particular is flying high. PowerShares DBA ETF has shown more than 50% return since Jan, 2007, when this ETF was introduced. In the same period S&P five hundred was down more than five pc. DBA is one of several farming ETFs out there and all of them seem to be performing.

There looks to be a trend that farming exchange traded funds goes up when stock market declines, according to the researchers. Based on this performance, would hedging your portfolio with farming ETFs make sense? That truly relies on your prophecy of the stocks you own and whether you suspect they do sufficiently well on their own. If you see the stockmarket in decline, it could be worthwhile to take a look at commodity ETFs, particularly agriculture.

Supply and demand for rural products is the key to why these commodity ETFs are doing so well. The requirement for crops around the planet, especially in China and India is very high, and they are getting their supplies shipped in because they can't keep up or they are presaging a future need. China has the Olympics coming up and have been seemingly stocking up on wheat. Better health education around the planet is causing a higher demand for grains. Corn is on the rise for feed. Even sugar is in higher demand, perhaps due to the effect recent weather has had on world crops.

Agriculture ETFs are about predicting the future and the gurus are seeing this rise in farming exchange traded funds as continuing. Consumers would possibly not be cheerful about the cost of oil causing the skyrocketing costs at the grocery stores. No-one wants to see that these funny weather enigmas seemingly caused by global warming causing so much disaster. But commodity farming ETF stockholders are definitely able to have a look at the hidden benefit in these clouds.

Even the researchers cannot foretell the future, though some of them seem to do a pretty good job of trying. But they are pronouncing that the future looks good for commodity ETFs, and farming exchange traded funds in particular are getting an expert nod. If you got in on the farming game by purchasing some DBA exchange traded funds back when it was introduced in Jan, 2007, then you already know what a farming ETF can do for your portfolio. If you haven't given commodity ETFs a try yet, perhaps now is the time.

You are the sole one who can pick which investments are ideal for you. Only you know what your portfolio looks like and whether the ever dropping S&P five hundred is doing for you and whether you want something in there that may counteract it. Make the effort to study up on farming exchange traded funds. They could be the boost your portfolio needs. You will not have to be as worried about your other stocks if you have some commodity ETFs to back them up.

To learn more about trading with ETFs successfully, you have to check out ETF Trend Trading.