The White House Scandal: 3 Ways to Protect Yourself from Washington's 6-Year Itch
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Doug Fabian’s SPECIAL REPORT For Successful ETF Investing Subscribers Only The White House Scandal: 3 Ways to Protect Yourself from Washington’s 6-Year Itch Doug Fabian Editor, Successful ETF Investing
IMPORTANT NOTE: This special report is for information and educational purposes only, based on data as of June 2014. Do not buy or sell any investments until your seek the advice of your financial advisor. The White House Scandal: 3 Ways to Protect Yourself from Washington’s 6-Year Itch Copyright © 2014, by Doug Fabian. All rights reserved. No quotes or copying permitted without written consent. Published by: Eagle Financial Publications 300 New Jersey Ave. NW Washington, DC 20001 800/211-4766 Email: CustomerService@Fabian.com Website: www.Fabian.com
The White House Scandal: 3 Ways to Protect Yourself from Washington’s 6- Year Itch. Introduction Dear Investor, Ever since the mid-90s, there’s been a hidden force at work in the stock market. It pits Wall Street veterans and Washington power brokers against individual investors like you and me. And every six years, this dividing force causes the market to crash. It happened in 2002… It happened in 2008… And it’s going to happen in – you got it – 2014. When it does, it’ll take trillions of dollars from us, and “transfer” them into the accounts of Wall Street’s big boys. As inevitable as this losing pattern seems to be, there’s an even simpler way to avoid it. And it’s detailed in this special report. Below, you’ll find 3 investment recommendations that will protect your portfolio’s value, even growing your wealth, while others succumb to this White House Scandal. So go ahead and dive in. The sooner you discover these 3 plays, the sooner you can begin defending yourself against Washington’s 6-Year Itch. Yours for higher profits, Doug Fabian Editor, Successful ETF Investing
6-Year Itch Protection Play #1: First Trust ISE-Revere Natural Gas Index Fund (FCG) The biggest game changer on the energy front is the development in the natural gas space. Through the process known as “fracking,” energy companies are able to extract more of this low-cost, high-energy- content fossil fuel than ever before. The use of natural gas is extremely efficient, and it’s also one of the cleanest-burning fossil fuels. This situation makes it appealing to those who are concerned not only with obtaining low-cost energy but also those concerned with environmental issues. I recently read an article in The Atlantic magazine that quoted one energy industry expert who said that fracking is creating “the biggest change in energy in almost 100 years — a revolution.” One exchange-traded fund (ETF) designed to capitalize on this fracking revolution is the First Trust ISE-Revere Natural Gas Index Fund (FCG). The provider, First Trust, constructs a specific basket of stocks for FCG to track. For the index, U.S.-listed natural gas stocks are ranked according to a variety of factors, including price/earnings ratio, price/book ratio, return on equity, correlation to natural gas futures prices, market capitalization, liquidity and weighting concentration. The top 30 of these are selected for the index and thus determine FCG’s performance. Thanks to the fracking boom, the near future looks bright for natural gas. I encourage you to buy First Trust ISE-Revere Natural Gas Index Fund (FCG) at market in order to take advantage of this energy revolution. Data as of 6/20/2014 Source: Yahoo Finance
6-Year Itch Protection Play #2: Market Vectors India Small-Cap ETF (SCIF) One sub-segment of the emerging markets that’s really seen some heavy buying of late is India. Stocks in the sector have vaulted to multi-year highs. The catalyst here was the recent election of the Hindu- nationalist, pro-business Bharatiya Janata Party, or BJP, particularly the election of BJP Party leader Narendra Modi as the new prime minister. The election marks the first real party leadership change in more than six decades. As prime minister, Modi is expected to clear up governmental bureaucracy and corruption and improve infrastructure and India’s economy, much the same as he did as chief minister of the Gujarat region. Investors are among those hopeful for India’s future under Modi; great amounts of capital are flowing into the country. One such avenue open to individual investors interested in India is the Market Vectors India Small-Cap ETF (SCIF). SCIF is pegged to smaller companies in India profiting from that country’s domestic economic growth. As Modi’s pro-business reforms take hold, SCIF should rise along with the Indian market. While India’s large size and widespread diversity do present challenges to the notion of the country running smoothly under the hoped-for reforms, observers feel Modi is up to the task. After all, BJP took many seats in the recent election, meaning Modi should have an easier time consolidating power and moving forward with his policies. Data as of 6/20/2014 Source: Yahoo Finance
6-Year Itch Protection Play #3: YieldShares High Income ETF (YYY) For investors interested in additional dividend income, there are few choices as enticing as YieldShares High Income ETF (YYY). This security is built like most yield-focused ETFs in composition but with a little more equity exposure via closed-end funds. As a result, it offers solid, albeit volatile, capital appreciation potential. Since its inception in June 2013, YYY has paid a dividend every month but one, resulting in an attractive yield of close to 9%. How does this fund manage to offer such a high, consistent dividend yield? As an ETF, YYY provides its investors access to the potential success of a group of stocks. YYY follows a group which consists of the top 30 U.S.-listed closed-end funds. In addition, YYY is a “fund of funds.” That is, where most ETFs invest in stocks of individual companies, YYY is an ETF that invests in other ETFs. Since ETFs attempt to pick the best of the best, a fund of funds attempts to secure the absolute cream of the crop. As a result, YYY manages to produce its high yield via a steady stream of success-fueled dividend payments. If you are interested in income, I recommend YieldShares High Income ETF (YYY). Data as of 6/20/2014 Source: Yahoo Finance
About Doug Fabian Doug Fabian is the editor of the monthly investment newsletter Successful ETF Investing and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as a top- ranked risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug published the book "Maverick Investing" in 2002 and has appeared as a commentator on CNBC, Fox News and CNN. He also has been quoted in the Wall Street Journal, USA Today, Barron's and other publications.
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