Wednesday, March 5, 2008

Time for ETF's

So far, I've held back on recommending ETF's, but I think it's time to highlight a few of them. In the first two months of this year, commodities ETF's have been on fire. Just today, the gold ETF (GLD) and the crude oil ETF (USO) closed at all-time highs, at $97.72 and $83.80 respectively. The weak U.S. dollar and rising inflation have been driving these prices and I expect that trend to continue in the next few months. The Fed is now in rate cut mode and last week Ben Bernanke basically said we should expect more rate cuts in the near future. That obviously will drive the dollar lower and it will fuel inflation that's at it's highest level in quite a few years. One othr ETF that I like that I think we can make money with is the Direxion Dollar Bear 2.5 Fund. Today it closed at $26.46 and I would be a buyer at that price.

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