Hi Gang, This is confusing, lots of comments about sticking to ETFs but the pointers are to finding and rating individual stocks. Pointing to what worked in the past, but is advised against today doesn't seem to make a lot of sense. So what should I do to select something for the warehouse? The 1x ETFs don't seem to have all that much volatility so don't seem to fit AIM very well. The 2x and 3x scare the pants off me.
I've already been a bit burned by one 2x that was suggested by my now ex-broker/dealer. The return is good but the price has not gone down enough to capture new stocks, nor has it gone up at all so there could be a bit of a sell. The return is almost 20%/year which is fine for the trust for my brother but it is hovering around 12-14% loss for the last while. So, net net, only a real gain of 6-8% a year. Not bad but in reality only about 3-4% over real inflation, and after taxes somewhat less than 3%.
The area of migrating from what my mother was in to what it should be now is painful and while I'm doing well overall - ~10% income/year - there is more risk than I like this late in the normal business cycle. At this point it seems that I need to wait it out and close a potentially risky position when it is in modest positive territory but then what do I do with the cash? Do I just sit on it for the next 18-36 months?
Where are the tools or methods to analyze the ETFs/ETNs?
Thanks,
Allen
