Thursday, December 22, 2011

Debunking 3 Gloom & Doom Concerns And Banking On Consumer Cyclicals [Podcast]

How much of the farm should ETF investors "bet" on farming?

Throughout 2011, Jim Rogers has been particularly bullish on agricultural-based assets. Yet Market Vectors Agribusiness (MOO) and PowerShares DB Agriculture (DBA) are both down -11% over the prior year.

Is Mr. Rogers changing his tune? Not a chance. Although the world-renowned China bull is somewhat bearish on stock assets, he still sees the world’s demand for food rising. That should help agricultural commodities represented by PowerShares DB Agriculture (DBA)... and it should benefit the corporations in Market Vectors Agribusiness (MOO) that supply the global agribusiness industry.

Of course, there’s a more popular form of harvesting taking place in 2011… tax-loss harvesting. Specifically, savvy investors are taking some losses on short-term investments in December, rather than holding-n-hoping. For instance, an agribusiness believer can sell Potash (POT) today at a loss, replace it with Market Vectors Agribusiness (MOO), and simultaneously lower his/her tax bill.

Obviously, European debt uncertainty is punishing stocks all across the big board. The debt crisis has pushed traders out of commodities as well. Is there any hope for "risk assets" as the holiday season comes to an unceremonious conclusion?

Actually, retail ETFs may get a lift. Not only are the Retail HOLDRS (RTH) "holding" onto a 200-day uptrend, but this exchange-traded vehicle has been logging "higher lows" since August.

click to enlarge

Listen to my latest podcast here:

Disclosure: Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships.


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