ETF Trends
ETF Trends

The last year has been hectic one for stocks, exchange traded funds (ETFs), other securities and the overall market. We can only hope that 2009 will be a lot shinier. Where can we look for some potential surprises – good or bad?

Brett Arends of The Wall Street Journal gives us some areas to keep a close eye on in 2009, for better or for worse.

  • Municipal Bonds: Some are paying as much as three times as much as Treasuries, on a taxable basis; they will either be a gold mine or a huge money pit. Take a look at the iShares S&P California Municipal Bond Fund (CMF), which has crossed both its 50- and 200-day moving averages.

  • GAP (GPS) is a cheap retailer with a solid balance sheet, it is trading around six times cash flow and yielding 2.6%.  Perhaps take a look at Retail HLDRs (RTH) if you’d like exposure. GPS is 2.6%, and it has crossed its 50-day moving average. 

  • Long Treasury: Many investors have rushed into treasuries for their safety, but a 30-year yields a measly 2.63%; everything but Depression-style deflation will hurt these bonds. Keep an eye on the Vanguard Extended Duration Treasury ETF (EDV), which is above its 50- and 200-day moving averages.

  • Precious Metals: Governments are borrowing and printing money like crazy, which is terrible for paper money and great for precious metals. Take a look at silver, a bit cheaper than gold, more specifically, the iShares Silver Trust (SLV), which has crossed over its 50-day moving average.