Best ETFs For A September Crash
Gary Gordon | Aug 26, 2013 04:15PM ET
Over the last few weeks, there have been an inordinate number of articles concerning the high probability of a stock market crash. One theory is that the super-sized year-to-date gains of the Dow coupled with the summertime interest rate spike is analogous to what transpired prior to Black Monday on October 19, 1987. Another premise for a miserable September regards the fact that price-to-earnings (P/E) ratios are growing faster than at any time since the dot-come bubble burst in March of 2000. Last, but hardly least, margin debt is at its highest level since the 2007-2008 financial meltdown.
And If You Thinks That's Bad..
Of course, why should commentators stop at these comparisons? Our country’s M2 Money Supply as measured by currency in circulation as well as short-term deposits at banks appears to be slowing in the same manner as it did prior to the “October 1929 Crash.” What’s more, the S&P 500 SPDR Trust (VXX ) could rocket in a reversal of the complacency trend and extended duration Treasuries via Vanguard Extended Duration (EDV) could surge on a reversal of the “rates-can-only-go-up” thinking.
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ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc., and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships.
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