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Oil ETFs - What are the Choices for an Oil ETF

Oil is a popular investment target these days as the price of oil shows a lot of volatility, and provides some diversification as it doesn’t move in concert with the overall market. As an alternative to investing in oil stocks or trading crude oil directly, you may wish to invest directly in ETF’s that track an oil index.

How Much Do You Need to Retire? Adjust Your Portfolio to Need Less

If you’ve ever looked what kind of nest-egg you are going to need to retire, you’ve undoubtedly come across the standard rule of thumb only allows withdrawing 4% a year if you want to have your savings last at least 30 years.

So if you wanted to start withdrawing $80k a year, you would need to have $2 million dollars in savings. Now that is a mighty sum, and many may consider it out of reach, especially if you are starting late in the game.

Penny Stocks - How to Invest in Penny Stocks

Penny stock get a lot of press, especially in rising markets. What is a penny stock, and how do you invest in penny stocks?

For US investors, a penny stock is typically thought of a common stock that is currently trading for under $5 a share, and is not on one of the major stock exchanges, but is traded over the counter ( aka OTC) and quotes are provided through the Pink Sheets or the OTC Bulletin Board. Typically, stocks listed OTC tend to have low market capitalization (basically the total value of the entire companies stock) and don’t have a lot of trading volume (are “thinly traded”). Even if there is a lot of share volume, since the price is so low there is not a lot of dollar volume. This in itself can lead to a lot of volatility in the stock price.

Best Fidelity Funds to Diversify Your Portfolio

We get a lot of questions about the best funds to build a well diversified portfolio. There are many factors that go into it, but here is an article we published that describes one way to identify some good candidates. This article builds around the Fidelty funds, but the same approach can be used to select ETFs to get many of the same benefits.

Almost any article in the popular press about building an investment portfolio is quick to advise that you need to build a diversified portfolio. You then get some rule of thumb about buying stocks and bonds, or you need to buy 8 stocks from different industries, or you need 5% in precious metals or international stocks.

Gold ETF Funds and Gold Mutual Funds - Diversifying Portfolios with Gold

Gold ETFs and gold mutual funds can add some needed diversification to your portfolio. In our series on building high return, low risk portfolios, we have learned that an asset class can be of value to our portfolio if it add to the return, or if it is sufficiently uncorrelated to the rest of the portfolio to reduce the risk without reducing the returns.

One common piece of investment advice is to add precious metals, often specifically gold, to your portfolio as a way to hedge or reduce the overall risk of the portfolio. The rationale, of course, is that gold often moves in the opposite direction of the overall market, as when there is a great deal of uncertainty, or the fear of inflation, or even something as severe as the threat of war, then gold will often move up in value.

Foreign Currency ETFs - A Look at Foreign Currency Fund Choices

What is a foreign currency ETF or exchange traded fund? The first foreign currency ETF was offered by Rydex in 2005, traded as FXE, and it tracks the European Euro against the US dollar.

Now you should be aware that when you are involved in currency trades, you are actually participating in a market that is much larger than the US stock market. The Forex, or foreign currency exchange market dwarfs the US stock market, and is probably the largest financial exchange in the world.

ETF Correlation Calculator - Properly Diversify Your Portfolio

One of the things we cover in our discussion of building a low risk portfolio is the need to find investments that have a low correlation to one another and the overall market. This is probably the most powerful tool for reducing risk in your portfolio without the need to suffer a reduction in overall return. The problem is finding those high return but low correlation funds or ETF’s.

Oil Stocks - How to Invest in Oil Stocks

Should I invest in oil stocks?

That’s a question that a lot of investors have been asking themselves over the last couple of years. The fundamentals of the oil stocks story aside, the case can be made that investing in oil stocks is a reasonable way for the average investor to hedge his individual energy costs (like the price of a tank of gas or your electric bill) with part of their portfolio. It’s interesting that paying an extra $5 a tank at the pump doesn’t feel so bad if you have oil stocks in your portfolio that have just gone up 5% as well. And many average investors can’t trade crude oil directly.

Of course, these are some of the most volatile stocks around, and many of the penny stocks are associated with the energy industry as well. So, how best to invest in oil stocks?