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14 August 2020

A long term trading strategy with ETFs

This simple strategy tries to gain when markets are bullish and cut losses when crises comes.
The idea is to use a strong negatively correlated instrument as Buy and Sell signals for some ETFs.
The selected instrument is no other than VIX.
After, of course, inverse ETFs, VIX is the most negatively correlated Index with S&P 500, STOXX 50, MSCI All World and other broad equities Indexes...
24 June 2020

Highest Dividend Yields in Europe

Hi there, I just added a new table to tableuros with European ETFs with the highest yields.
The current champion is Invesco Morningstar US Energy Infrastructure MLP, offering a juicy (but volatile and risky) 20% dividend yield.
Check the rest in here
19 June 2020

Buy and hold... Stocks or ETFs?

You may have already heard, Wirecard lost € 2 billion, but if you are not aware of this case is not what you think, they literally lost 2 billion... in the sense that they don't know where they are!.

The news made WDI stock plunge more than 60% on 18/06/20 and another 40-ish % down so far on 19/06/20 (I changed 5 times this value while writing this article).

So what's the connection between WDI and ETFs, because this community is about ETFs, right?...
16 June 2020

Vanguard's forecast for the decade after COVID-19

I'm not a big fan of forecasts because they are usually wrong or late, but still, I think that we may get beneficial information from forecasts and they could be useful to understand how markets move and plan your own strategy, maybe different than the forecast or partially backed by the forecast.

Either way you should never think in black and white, no forecast is or can be 100% accurate and you have to think in terms of what is more likely to happen instead of what is going to happen.

That’s the case with this forecast from Vanguard for 20's decade: Beyond the pandemic: What to expect from stocks, bonds.

It is focused from the American perspective but can be used by European investors as well, in fact they arrived to similar possibilities that we discussed here: On Nasdaq 100 and US markets future and here: Value vs Growth Investing: Time for Value? but by different paths.
12 June 2020

How to find correlations between ETFs prices?

Easiest way, just go here and try this new functionality on tableuros

But what are these correlations about?...

Some background:

Correlation is a coefficient that measures how much in unison the prices of securities (such as ETFs) move in relation to each other. This coefficient is important because allows you to know if your portfolio is diversified enough. Many times, investors think that because they hold ETFs tracking different Markets, Assets or Strategies are diversified enough, but in reality, even not connected ETFs may move in harmony diminishing the benefits of diversification.
The correlation coefficient's values range between -1 and 1:
* A perfect positive correlation (1) means that as one security moves, either up or down, the other security moves in lockstep, in the same direction.
* A perfect negative correlation (-1) means that two assets move in opposite directions.
* Zero correlation implies no linear relationship at all.

You can learn more about Correlations and Portfolio Theories from our Recommended Books, specially Smart Portfolios, Portfolio Selection and Modern Portfolio Theory and Investment Analysis.
28 May 2020

CFDs on ETFs

Recently I've been inquiring the internet for affiliate brokers for my webpage and I found out tons trading CFDs on ETFs rather than ETFs. In my opinion most of them not making the difference clear enough, probably because ETFs are more trendy and new investors friendly than CFDs. Sometimes they really trade ETFs but only a few so they can say to you: "oh yes, we do have ETFs"...
18 May 2020

On Nasdaq 100 and US markets future

During the last months caught my attention a large and increasingly amount of people asking about or willing to invest in US Market and particularly Nasdaq 100 Index. Never asked why because I imagine some reasons:
Their recent performance.
IT companies with more power and money than most countries
No other country or sector threatens their hegemony, etc.
I'm not about to say that America is doomed and Nasdaq is a bad investment... but allow me to play the Devil's Advocate...
7 May 2020

Can be VIX part of your Portfolio?

A couple of weeks ago, just by coincidence, I found this ETF: Invesco S&P 500 VEQTOR UCITS ETF.
Since them I was wondering: can be VIX part of my Portfolio?. Actively or passively?.
For those unfamiliar with VIX, it's the SP500 Volatility index also know as "fear index". Goes flat or down when markets are quiet or bullish and spectacularly up on turbulent times...
29 April 2020

Value vs Growth Investing: Time for Value?

You might heard during the last months that the old mighty Value Investing that made Buffet and Munger billionaires was the worst factor investing by returns of the decade and its nemesis, Growth Investing, was the best performing.
However, over longer periods of time, Value outperformed.
Briefly, this happens because...
16 April 2020

Oil vs Green Energy

Since oil's price downturn I've seen many posts asking about oil commodities to take advantage of a possible rebound.
Also many people says that even at current oil prices is not a good investment because green energies are the future and oil is doomed. So, what's the best bet?...
15 April 2020

When should I choose a Hedged ETF and when not?

Hi there, a couple of things that might confuse and overwhelm to new investors are currency risk and hedging.
Even experienced investors that known the theory finds the choice (or not) of a Hedged ETF sometimes cumbersome due to the back and forth logic that you have to follow in your head.
Usually a graph helps to clarify the relation between Currency, Hedged and UnHedged ETFs...
3 April 2020

European ETFs Providers Costs: the best and the worst ones

Hi there, one of the most checked parameters by ETFs investors worldwide is their TER
The rule of thumb is: the lower, the better.
But that's not always the case, sometimes the TER is low but Tracking Differences with their Indexes are much higher than the TER and that it might be worst. Like the saying: "If you pay peanuts*,* you get monkeys."
Let's check if we are playing with monkeys then...
23 March 2020

Meet Bob, world’s worst market timer... or just a lucky scammer?

You may know Bob, he is the worst market timer in the world.
He bought shares only 4 times in his life just before last 4 Market crashes (not counting Corona's) and still he retired with a good lump of extra money....
17 March 2020

COVID-19 vs History (Updated to Week 11-2020)

Hi again, I just updated last week Analysis and also compared COVID-19 with last outbreaks and added Volume plots...
13 March 2020

COVID-19 vs other Crises (Updated to Week 10-20)

Hi there, in case you are curious about how is going current market downturn compared with last 4 Stock Markets crises, let's correlate them until Week 10-2020.
These 4 crises were...
11 March 2020

A Portfolio Tracker and Benchmark for Degiro clients

This is a R script that import your daily Portfolio export from DeGiro, then save it in Excel, compare your performance with mayor Indexes and plot...

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