Last week, the American Association of Individual Investors held its national conference in Las Vegas, Nevada, where investors, advisors and industry experts came to discuss portfolio strategies in the current market environment. Exchange traded funds were a topic on everyone’s lips.
In past conferences, the group of investors tended to have a heavily mutual fund, buy-and-hold asset allocation oriented mindset. However, the 1,200 or so investors who made the trek out this time around gave off the impression that they have left the buy-and-hold mantra at their doors and were seeking out new ideas and actionable strategies to navigate the current markets.
The investors seemed more opportunistic, taking control of their portfolios and looking for greater diversification. For instance, many people were asking about ways to capitalize on higher Treasury yields. [ETFs for Rising Bond Yields]
Additionally, more investors are beginning to utilize ETFs, notably for accessing alternative asset classes like commodities or currencies as a hedge. In a quick survey of the attendees, around 75% of the audience stated that they use ETFs while 25% said they plan on investing more in ETFs over the next year. ETF education is also progressing. Investors were revealing a stronger knowledge of expenses and tax efficiency in ETFs.
Desperate to get that extra edge, investors were actively seeking specific investment tips from myself. Tips aren’t bad, but quick stock picks for today’s investment environment will not necessarily stay solvent down the line, writes Chuck Jaffe for MarketWatch.
An investor shouldn’t rely just on stock tips, no matter how scared the market makes you or how confident you are about the expert source. We try to adhere to a trend-following strategy to take away the emotions that may affect investment decisions. By following a 200-day exponential moving average trend following strategy, we know when we are in and when it is time to get out.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.