Articles by Hans Wagner on ArticleSnatch.com

Five Steps to Build a Sector Based ETF Portfolio

Tue, 28 Jul 2009 16:37:25 -0400

A sector based Exchange Traded Fund (ETF) portfolio offers investors a lower risk way to participate in the cyclical nature of the economy and the market. ETFs offer investors a way to reduce their risk by diversifying their individual stock exposure. Sector rotation is an investing strategy that seeks to buy and own ETFs that hold shares of companies in industries that should outperform the market. If you want to take advantage of the benefits of a sector based ETF portfolio, here are five steps to you should you take. By following these steps, you will build a sector-based portfolio with ETFs that should generate high returns and help you sleep well at night. 1. Identify the trend for the market over the next year. A year is far enough out to remove you from the day-to-day movement of the market. Yet it is close enough for you to have a reasonable perspective of the economy and the market. 2. Identify the top three industry sectors within this trend that are most likely to beat the market. These sectors will lead the market and is where you should focus your time. **End Summary** Topics: exchange traded fund]]> etf investing]]> etfs securities]]> etf sector rotation]]> etfs portfolio]]> etf portfolio]]>]]> About the Author: ]]> After beginning to invest in high school, Hans Wagner retired at 55, having gained a very good understanding how the indivual investor can succeed. I share that experience with others, so they can achieve financial independence as well. Our model portfolios at http://www.tradingonlinemarkets.com have beat the market every year.

Smart Grid Investing Opportunities Might Soar

Fri, 17 Jul 2009 00:00:00 -0400

With the likely passage of the "Cap and Trade" bill, many investors are jumping on the renewable energy bandwagon. And why not. With the government about to mandate a cap-and-trade program that will drive up the cost of electricity, there are many new opportunities to capitalize on the flow of investment dollars from public and private sources. They also are looking for investment opportunities through stocks of smart grid companies. This head long push into alternative power generation is causing investors to take a new look at the old electrical grid system. While there have been attempts to move to a market based power generation system, most of these efforts have failed to achieve their original goals. Moreover, the electricity transmission and distribution system remains much the same and is a big problem. For example, T. Boone Pickens has announced he is curtailing his plans to build the world's largest wind farm in West Texas. Part of the reason is the lack of adequate transmission lines to carry electricity from the remote wind sites to cities. This is where a smart grid investment program makes sense for investors. **End Summary** Topics: smart grid]]> smart grid investing]]> smart grid companies]]> smart grid stocks]]> smart grid investment pro]]>]]> About the Author: ]]> After beginning to invest in high school, Hans Wagner retired at 55, having gained a very good understanding how the indivual investor can succeed. I share that experience with others, so they can achieve financial independence as well. Our model portfolios at http://www.tradingonlinemarkets.com have beat the market every year.

Growth at a Reasonable Price (GARP) Investing

Thu, 09 Jul 2009 00:00:00 -0400

Growth at a reasonable price (GARP) investing seeks to find companies that have strong earnings growth at a good price. GARP investing blends growth and value to create a better way to invest. How does it work? As defined by Investopedia, "value investing is the strategy of selecting stocks that trade for less than their intrinsic value. Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the markets overreact to good and bad news, causing stock price movements that do not correspond with the company's long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated." So what determines value from an investor's perspective? That usually depends on the perspective of the investor. Some look at current measures such as the Price/Earnings ratio (P/E) and other measures that focus on the current financial situation. Others look to future cash flows discounted at some rate to arrive at a value estimate based on future financial performance. The point of this analysis is to try to find stocks cheap in comparison to what they should be worth. **End Summary** Topics: garp investing]]> growth at a reasonable price]]> growth and value investing]]>]]> About the Author: ]]> After beginning to invest in high school, Hans Wagner retired at 55, having gained a very good understanding how the indivual investor can succeed. I share that experience with others, so they can achieve financial independence as well. Our model portfolios at http://www.tradingonlinemarkets.com have beat the market every year.

Three Indications A Stock Is About To Be In Trouble

Tue, 07 Jul 2009 00:00:00 -0400

Investors who seek to beat the market should be aware of changes in the financials that signal potential problems. Any shortfalls in the financials spell big trouble for shareholders. While trouble can seems to come out of nowhere, there are early warning signals that can indicate that potential problems. If you are learning to invest, then it pays to perform these simple analyses. Gross margin is most useful for detecting deteriorating competitive conditions. The gross margin measures the profit a company makes on its products or services it sells before accounting for overhead, marketing, research and development, interest and taxes. When the gross margin rises, it tells you that the company is raising prices and/or reducing production costs. When the gross margins are rising, it is a sign of good future earnings surprises. Conversely, gross margins that are shrinking indicate that either price raises are not keeping up with cost and/or production costs are increasing faster than revenues. Either condition portends future earnings falls. The gross margin is calculated by dividing gross operating profit by sales for the same period. Ideally, it pays to compare the gross margin for a company over a series of months. **End Summary** Topics: cash flow]]> stock market investing]]> stock analysis]]> learn to invest]]>]]> About the Author: ]]> After beginning to invest in high school, Hans Wagner retired at 55, having gained a very good understanding how the indivual investor can succeed. I share that experience with others, so they can achieve financial independence as well. Our model portfolios at http://www.tradingonlinemarkets.com have beat the market every year.

Bear Market Strategies for IRA Investors

Mon, 06 Jul 2009 00:00:00 -0400

Investing in a bear market presents new challenges for conservative investors. No one wants to loose money. Fortunately, there are safe strategies for conservative investors to continue to invest their money. This conservative investment idea is designed to save your IRA from experiencing losses during a bear market. In addition, it helps to position you for the recovery in the stock market once it begins. When investing your IRA portfolios during a bear market the best strategy is to stay in cash, use income investments, and/or be short. In a bear market, I divide my IRA portfolio into three segments, not necessarily equal. My objective is to preserve my capital until the market turns around with a secondary objective to make some money. Invest the first segment in a money market fund. Cash is a position that has no risk and earns a small return. Money market funds are fine for this. They are safe and you can access your cash when you need to do so. The percent of your portfolio that you place in this segment depends on your comfort level with the other two strategies. **End Summary** Topics: IRA investing in a bear market]]> conservative investing]]>]]> About the Author: ]]> After beginning to invest in high school, Hans Wagner retired at 55, having gained a very good understanding how the indivual investor can succeed. I share that experience with others, so they can achieve financial independence as well. Our model portfolios at http://www.tradingonlinemarkets.com we have beat the market every year.

What is up with the Price of Oil?

Thu, 02 Jul 2009 00:00:00 -0400

The price of oil has climbed despite the lack of demand and a glut of surplus crude. Moreover, crude remains in contango. Benchmark crude closed near its highest level in eight months on Friday June 19, 2009 reaching $69.50 on the New York Mercantile Exchange. Gasoline has risen with the price of oil reaching a national average of $2.63 per gallon. Higher oil prices are another factor affecting the economy's ability to recover. What is fueling this price increase and is it sustainable? Inventories of crude have risen above their five-year average range despite lower demand from the recession. According the June 17, 2009 weekly report from the Energy Information Administration (EIA), inventories of oil have been rising for a year. Moreover, crude inventories are have been on a rising trend until recently, despite the U.S. and global recession. Each $1 increase in the price of gasoline costs the U.S. economy $140 billion in spending on other items. According to the Washington Post and the Congressional Budget Office, the total spending from the stimulus package passed in February will reach $107.1 billion in 2009. Since January 2009, the price of gasoline has climbed about $1. **End Summary** Topics: contango]]> backwardization]]> ]]>]]> About the Author: ]]> After beginning to invest in high school, Hans Wagner retired at 55, having gained a very good understanding how the indivual investor can succeed. I share that experience with others, so they can achieve financial independence as well. Our model portfolios at http://www.tradingonlinemarkets.com we have beat the market every year.

Utilities in the New Carbon World

Wed, 01 Jul 2009 00:00:00 -0400

Over the last several months, I have indicated that utilities will be facing significant new challenges as they adjust to the new green initiatives from the new administration and Congress. About 56% of the electricity generated in the United States is from coal, a significant contributor to carbon emissions. Natural gas generates about 27% of the electricity, wind generates about 1% and solar generates about 0.1% of the electricity used in the United States. The efforts to reduce carbon emissions will have a significant impact on the economic of the utilities industry and their support industries. The shift from a market-based economy to one that is more politically controlled will have long-term ramifications for the U.S. economy and certain industries. The 110th Congress produced six carbon cap-and-trade bills that could not get through all the politics in the capital. The shift in the political make up of Washington is likely to change the operations of carbon producing industries and will have significant consequences for investors in the utility industry. President Obama has continued to back his campaign pledge to take action to reduce carbon emissions. In a re-alignment of the house committee leadership, Representative John Dingell (D. **End Summary** Topics: Utility sector]]> investing in a carbon neutral world]]> carbon caps]]> impact of carbon caps on utilities]]>]]> About the Author: ]]> We have substantially beat the market every year since out inception. Free four-week trial without obligation at Trading Online Markets LLC .