Daily “Ways-to-Play” The News Before the Moves 12/15/2009

High-Yield ETFs’ Love-Hate Relationship With Investors

Following a disastrous 2008, high-yield bonds have outperformed virtually every asset class, with the BarCap U.S. Corporate High Yield index up 55% so far this year. While high-yield bonds trade thinly, ETFs such as iBoxx $ High Yield Corporate Bond Fund and SPDR Barclays Capital High Yield Bond ETF provide a way to own them through a liquid vehicle. Morningstar says high-yield ETFs have tripled in size since the beginning of the year to $7.3 billion, boosted by the market rally a

sell iShares iBoxx $ High Yield Corporate Bond Fund (HYG)

sell SPDR Lehman High Yield Bond ETF (JNK);

Check out how others are using ETFs to capitalize on this news or add your own opinion

U.S. debt defies gravity

“What goes up, must come down” applies in the physical world. Does it also apply in the fiscal one? That is the question many are asking as they look at the latest dismal budget news from Washington. Increasingly, they are answering “no.”

buy iShares Lehman 20+ Year Treasury Bond Fund (TLT)

buy Aberdeen Australia Equity Fund (IAF);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Roubini: THE 5 REASONS GOLD IS IN A BUBBLE AND AT RISK OF SIGNIFICANT CORRECTION

Nouriel Roubini recently published a report claiming that gold is now in a bubble and at significant risk of a major correction (an opinion I had when gold was 10% higher and continue to maintain). He says the bubble is being driven by 5 primary factors:

sell Market Vectors Gold Miners ETF (GDX)

Sell streetTRACKS Gold Trust (GLD)

buy PowerShares DB Gold Short Exchange Traded Note (DGZ)

buy PowerShares DB Gold Double Short Exchange Traded Note (DZZ)

sell Junior Gold Miners ETF (GDXJ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Got Junk?

Time to exit high yeild bonds.

sell iShares iBoxx $ High Yield Corporate Bond Fund (HYG)

sell PowerShares High Yield Corporate Bond Portfolio (PHB)

sell SPDR Lehman High Yield Bond ETF (JNK);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Shadowstats’ John Williams: Prepare For The Hyperinflationary Great Depression

John Williams, who runs the popular counter government data manipulation site Shadowstats, has thrown down the gauntlet to deflationists, and in an extensive report concludes that the probability of a hyperinflationary episode in America over the next year has reached critical levels.
buy PowerShares DB US Dollar Index Bearish Fund (UDN)

buy streetTRACKS Gold Trust (GLD)

buy iShares Lehman TIPS Bond Fund (TIP)

buy UltraShort Lehman 20+ Year Treasury ProShares (TBT)

buy PIMCO Broad U.S. TIPS Index Fund (TIPZ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Mexico’s Credit Rating Downgraded One Level by S&P

The economy was the hardest hit in Latin America by the recession in the U.S., the buyer of 80 percent of Mexican exports. Mexico’s $1.09 trillion economy will shrink as much as 7.5 percent this year, the most since the 1930s, according to the central bank.

sell iShares MSCI-Mexico (EWW);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Poland May Raise Record $10 Billion in Share Sales

Poland may raise a record 30 billion zloty ($10 billion) in share sales next year as the government seeks to cover its budget deficit and businesses need cash to expand
buy Poland ETF (PLND);

Check out how others are using ETFs to capitalize on this news or add your own opinion

 

Is Exxon hoping to Standardise the shale gas market?

Here’s where it gets interesting. With the current glut of natural gas the stuff is going to be cheap for a while. That means consolidation in the industry, I’d guess major’s picking off Exploration & Production Co’s.

buy First Trust ISE-Revere Natural Gas Index Fund (FCG);

Check out how others are using ETFs to capitalize on this news or add your own opinion

German Investor Confidence Declines for Third Month

German investor confidence declined for a third month in December as analysts became more “realistic” about the outlook for the economic recovery.
sell iShares MSCI-Germany (EWG);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Moody’s sees sovereign states a-suffering

Ratings agency Moody’s takes up the sovereign subject again on Tuesday, with its 2010 outlook on sovereign risk. And the mood, as the below chart should demonstrate, is rather miserable.

sell iShares S&P/Citigroup 1-3 Year International Treasury Bond Fund (ISHG)

sell SPDR Barclays Capital Short Term International Treasury Bond ETF (BWZ);

Check out how others are using ETFs to capitalize on this news or add your own opinion


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