Yes! As an investment advisor I read just about everything I can. On a daily basis I read the Financial Times, Bloomberg.com, WSJ.com, Reuters, and the AP. A look at some of the headlines in the last few days might give you some insight as to what ETFs you might be looking at to build your portfolio.
Financial Times 3/5/2010 America must help its homeowners by Mort Zuckerman
This article essentially agrees with the notion I have had since this crisis took hold and that is unless homeowners that are way underwater get tossed a life preserver they could take us all down. The foreclosure are rising and new home sales are sluggish. According to the article more than 1 in 4 homes have a mortgage that exceeds its value. On top of it all the Making Home Affordable program the government rolled out has helped approximately 116,000 homeowners out of the roughly 8 million that could (and should) be addressed. Keep in mind we are seeing 300,000 or more new foreclosures a month.
The play here is avoiding US and European banks. Sure they may be enjoying some upside now but with homeowners getting little help, commercial property getting the squeeze and banks cutting credit available to many people where their profits are going to struggle. If you want to invest in the US and avoid the financials look at the Wisdom Tree Dividend ex-Financials ETF (ticker DTN).
Financial Times 3/5/2010 ANZ to rebuild Indian network by Jo Leahy and Peter Smith
Australia and New Zealand Bank (ANZ) is heading into India to re-establish its banking network there after a 10 year absence. ANZ has been jockeying to get into the position of being a banking power in Asia and the Pacific. ANZ bought Royal Bank of Scotlands’ operations in six Asian countries in 2009. The take away here is that these are not US banks and as you can read the European banks are selling their divisions in the hottest growing areas in the world. Bad timing? No. US and European banks need capital so they are selling divisions and ANZ is there to capitalize and move into places that US and European banks cannot afford to move into.
The play here is to gain exposure to Australian and Singapore Banks. This can be achieved with the iShares Australia ETF (ticker EWA), iShares Singapore ETF (ticker EWS), iShares Pacific x-Japan Ticker (EPP), or the Wisdom Tree Pacific x-Japan Equity Income (ticker DNH).
Financial Times March 6-7, 2010 Gucci eyes Asia as shoppers opt for discreet consumption an interview with Robert Polet Gucci Group chief executive
This ties along with the previous article in that investors should be looking to Asia and the Pacific. According to the article Gucci is targeting Asia for the bulk of its investment this year along with Latin America. According to Mr. Polet Asia and the Pacific ex Japan accounts for 28% of Gucci sales almost doubling since 2005.
The play here is Asia as a whole. You can cover the region with the iShares Asia x-Japan (ticker AAXJ). With this ETF you are getting pretty much all of Asia. If you follow growth this is the region of the future.
These are just a few examples of current news helping point the way for your portfolio.
Disclosure Statement: ETFGPS is a blog that Navigates The World of ETFs. Sustainable Investment Strategies LLC is a Registered Investment Adviser in the State of Maryland, and does hold positions in DTN at the time of writing. Investors who are interested in money management services may visit the Sustainable Investment Strategies LLC web site.