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Looking at ETFs (exchange traded funds)

Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
edited November 2009 in General Discussion
I'm getting the hell away from the dollar....As long as federal policy is to devalue our currency, it will be a losing strategy to hold funds back to await any fall in the market.

So far I've been buying foreign stock, but I'm now looking at foreign currency. My broker has some EFTs available that track currencies like the Euro, but I'm hesitant because I can't quite wrap my head around the fee structure....stock is so much simpler [:)]

Anyone have any experience, thoughts, etc. with ETFs?

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    storm6490storm6490 Member Posts: 8,010
    edited November -1
    quote:Originally posted by Rack Ops
    I'm getting the hell away from the dollar....As long as federal policy is to devalue our currency, it will be a losing strategy to hold funds back to await any fall in the market.

    So far I've been buying foreign stock, but I'm now looking at foreign currency. My broker has some EFTs available that track currencies like the Euro, but I'm hesitant because I can't quite wrap my head around the fee structure....stock is so much simpler [:)]

    Anyone have any experience, thoughts, etc. with ETFs?


    my old man puts it in the norwegian krone... i say you need to take physical possession of it if you are worried about a collapse.

    how would you get your funds when the dollar tanks? your computer wont be working..

    circulated silver is a safe bet.
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    quote:Originally posted by storm6490

    my old man puts it in the norwegian krone... i say you need to take physical possession of it if you are worried about a collapse.

    how would you get your funds when the dollar tanks? your computer wont be working..

    circulated silver is a safe bet.


    Thank you for your response, but I should have added that I have zero interest whatsoever in any metal not called lead.

    BTW, I'm not forecasting a collapse....just a correction [:)]
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    Ranger ManRanger Man Member Posts: 228 ✭✭✭
    edited November -1
    If your thinking the market is going to correct, you can always buy SH, it shorts the S&P 500.
    If your betting against the dollar, gold is a great way to hedge.
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    Rack,......with all of the ETF's that I have traded, the fees are 'built-in' per se.
    You need not worry about them when buying, or selling as you will buy at the price you enter, and you will sell the same way,.....assuming limit orders.

    Soooooo, in that respect they are just like a stock.
    I have never traded currency though. I have heard that it is quite easy to get your * handed to you though![;)]

    Kind of like trading commodities in the form of futures.
    Most lose money.
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    quote:Originally posted by Marc1301
    Rack,......with all of the ETF's that I have traded, the fees are 'built-in' per se.


    That's what I was afraid of.

    Way back in '99, when I first got into the market, I bought a few "good" mutual funds.

    Not only did I crushed in the "dot-bomb" bust, I was hammered with fees by the same guys that had just lost half of my life's savings [xx(]


    The more I think about it, the less I like ETFs........guess I'll stick with foreign stock. UBS is trading at steep discount.....and you can't go wrong with Swiss Banks, right? [;)]
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    quote:Originally posted by Rack Ops
    quote:Originally posted by Marc1301
    Rack,......with all of the ETF's that I have traded, the fees are 'built-in' per se.


    That's what I was afraid of.

    Way back in '99, when I first got into the market, I bought a few "good" mutual funds.

    Not only did I crushed in the "dot-bomb" bust, I was hammered with fees by the same guys that had just lost half of my life's savings [xx(]


    The more I think about it, the less I like ETFs........guess I'll stick with foreign stock. UBS is trading at steep discount.....and you can't go wrong with Swiss Banks, right? [;)]

    Join the party![;)]

    Just to be clear,.....lets say you are buying XYZ an ETF at the market price of 35 bucks a share.

    Two months later you sell it for 40 bucks per share at market.
    You pocket that 5 bucks just like you would selling a common stock,........minus your trade of course.

    The fees are built into the trading prices at all times. You don't pay anything when you sell, or buy though.
    I did quite well with a biotech ETF a number of years ago,......almost a double.
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    Cool, thanks for the explanation, Marc.


    Once the wife finishes school (damn, it seems like its been forever), I'll have a bit more "play money" for this kind of thing.
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    Don't know that I would be buying UBS right now,.....just pulled it up. Way off it's 52 week low, and NO dividend![:0]

    Take a look at MO, the old Phillip-Morris now Altria Group.
    Nice tight range, and a divy of over 7%,.......disclaimer, I own shares in the stock being touted above![:D]

    I also own some KMP with a high divy. It is setting a new high though today.
    Check out MWE,......over 10% divy!
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    quote:Originally posted by Marc1301
    Don't know that I would be buying UBS right now,.....just pulled it up. Way off it's 52 week low, and NO dividend![:0]


    Not worried about the dividends right now, I DRIP mine anyways.

    I still think its very undervalued, new management just took over and the Swiss are actively working on strengthening their banks.

    quote:
    Take a look at MO, the old Phillip-Morris now Altria Group.
    Nice tight range, and a divy of over 7%,.......disclaimer, I own shares in the stock being touted above![:D]


    Already heavily into MO, probably more than I should be,....but it hasn't let me down yet. [:)]

    quote:
    I also own some KMP with a high divy. It is setting a new high though today.
    Check out MWE,......over 10% divy!



    Like those energy stocks, don't ya [;)]

    Me too...I have several
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    RtWngExtrmstRtWngExtrmst Member Posts: 7,456
    edited November -1
    Buy the Chinese Yuan. It is much stromger than it's market value whereas the dollar is much weaker than it's market value. The dollar is doomed. The criminal enterprise in DC thinks it's monopoly money.

    Find a bank that will let you move your funds from one currency to another for reasonable fees.
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    What do you think of MWE,......I keep thinking about buying some?

    You are aware of GLD right?
    The gold ETF. I don't own any, and would be very hesitant to buy at this point.

    You read this UBS news yet?
    http://news.moneycentral.msn.com/ticker/article.aspx?Feed=OBR&Date=20091129&ID=10770899&Symbol=UBS

    Your pal,
    D.B. Cooper[:D]
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    quote:Originally posted by RtWngExtrmst
    Buy the Chinese Yuan. It is much stromger than it's market value whereas the dollar is much weaker than it's market value. The dollar is doomed. The criminal enterprise in DC thinks it's monopoly money.


    I don't invest in anything *-related....not because of human rights, but because I have a feeling they are going to be less than happy when Uncle Sam tells them we don't have the money to pay them.
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    quote:Originally posted by Rack Ops
    quote:Originally posted by RtWngExtrmst
    Buy the Chinese Yuan. It is much stromger than it's market value whereas the dollar is much weaker than it's market value. The dollar is doomed. The criminal enterprise in DC thinks it's monopoly money.


    I don't invest in anything *-related....not because of human rights, but because I have a feeling they are going to be less than happy when Uncle Sam tells them we don't have the money to pay them.

    Guess that means you don't have any Wal-Mart stock?
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    quote:Originally posted by Marc1301

    Guess that means you don't have any Wal-Mart stock?


    Nope...I'm staying away from anything that imports cheap, non-essential goods.
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    quote:Originally posted by Rack Ops
    quote:Originally posted by Marc1301

    Guess that means you don't have any Wal-Mart stock?


    Nope...I'm staying away from anything that imports cheap, non-essential goods.

    Did you see my post of 12:16:02 above?

    Heck,.....I don't own Wallyworld stock either, never have.
    Only thing I get from them is underwear and socks about once a year!
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    quote:Originally posted by Marc1301

    Did you see my post of 12:16:02 above?


    Completely missed it.

    Anyways, I don't take it as anything more than a bit of maneuvering by the CEO. No way UBS leaves Switzerland.


    As to the gold etf, I think I'd rather have the gold in hand. The thing that discouraged me from investing in metals to begin with were the buying and selling commissions......I can't remember what they were, but gold had to go up significantly just to break even.

    Gold DID go up significantly, but that boat has already sailed.
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    quote:Originally posted by Marc1301
    What do you think of MWE,......I keep thinking about buying some?


    I'd be hesitant....a couple things caught my eye

    *Over the past 12 months the company paid more in dividends than it earned

    *The company does not earn enough through its day-to day operations to comfortably satisfy its interest payments as illustrated by its Interest Coverage ratio of 1.27.


    I'd hold what I have, but I'm not sure its something I'd be increasing on.........but hey, being ahead of the herd is how you make money [:)]
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    quote:Originally posted by Rack Ops
    quote:Originally posted by Marc1301

    Did you see my post of 12:16:02 above?


    Completely missed it.

    Anyways, I don't take it as anything more than a bit of maneuvering by the CEO. No way UBS leaves Switzerland.


    As to the gold etf, I think I'd rather have the gold in hand. The thing that discouraged me from investing in metals to begin with were the buying and selling commissions......I can't remember what they were, but gold had to go up significantly just to break even.

    Gold DID go up significantly, but that boat has already sailed.

    Yes,.....I checked also on the metals.
    Best I found for silver was $2.50 over spot on American Eagles.
    100 ounce bars, 80 cents over spot per ounce.
    850 ounce bars or more 55 cents per ounce.

    Gold was even worse.
    I was considering buying some more silver since the gold/silver ratio is so out of whack.

    Something seems too much like a bubble to me though.
    Last prediction I read was gold at over 6K an ounce. I figure if that happens life as we know it will be over.

    How do you barter with someone when a single coin is worth 6K?
    I guess you carry a pair of tin snips and a scale along with all of your weapons and bug out gear?

    Not to mention global warming![:0]
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    quote:Originally posted by Rack Ops
    quote:Originally posted by Marc1301
    What do you think of MWE,......I keep thinking about buying some?


    I'd be hesitant....a couple things caught my eye

    *Over the past 12 months the company paid more in dividends than it earned

    *The company does not earn enough through its day-to day operations to comfortably satisfy its interest payments as illustrated by its Interest Coverage ratio of 1.27.


    I'd hold what I have, but I'm not sure its something I'd be increasing on.........but hey, being ahead of the herd is how you make money [:)]

    That is what has kept me out of it although they have been paying out that divy for some time now.

    I don't own ANY of that one, was just looking it over. I figure if I buy some, they will cut the dividend in half within a month.

    PPS drops through the floor of course.[xx(]

    I shall leave you in peace now!
    Time to get some stuff done outside.
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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