Even investing in Europe — the source of much market angst lately — can be less volatile with a sound strategy. Avoid pan-European investments while the Greek sovereign debt drama plays out, say analysts. Instead, opt for single-country ETFs to pinpoint strong economies around the world.
In Europe, Johnston likes the Germany ETF iShares MSCI Germany Index Fundand the Global X FTSE Nordic Region ETFthat targets northern Europe.
In Asia, where concerns about a slowdown in Chinese growth have hurt stock prices, he suggests investing in iShares MSCI Singapore Index Fund , since Singapore is growing quickly and is relatively stable.
The MSCI Indonesia Investable Marketalso offers a bright spot, fueled by Indonesia’s massive population, stable fiscal policies and growing middle class, says Johnston.
U.S.-centric investors can ride index ETFs too, adds Johnston, via inverse ETFs.
The Active Bear, which is 100 percent short and actively managed, is one favorite. For shorting indexes, there’s the ProShares Short S&P500 and the ProShares Short Dow30. Some other ETFs are hybrids, such as the Quant Shares US Market Neutral BetaETF that holds both short and long stock positions, he says.
Rimmy Malhotra, chief investment officer at GoalMine.com, prefers using put options or covered calls to shorts, though.Page 2 of 3 | Prev Page | Next Page