These GEMS Will Make Your Portfolio Sparkle

| August 30, 2011 | 0 Comments

“Should I sell everything and move into cash?” is a question I’ve heard way too often lately.

Market volatility has a funny way of bringing out the worst in investors. And the huge daily swings we’ve seen lately have many retail investors making emotional buy and sell decisions.

It’s understandable.  Nobody likes to lose.  And if you’re watching your brokerage account on a daily basis, it can feel like you’re watching the scoreboard of a losing game.

But that doesn’t mean you should sell all of your ETFs, stocks, bonds, and gold!

The fact is, stocks don’t move in a straight line.  They go up… They go down… But history shows us that over the long run stocks outperform.

Here’s the bottom line… if you want to grow your investment account, you need to invest in stocks.

And if you need to invest in stocks, then you need a new way of thinking.  You can’t be ready to “sell everything” every time the markets get a little rocky.

Think of it this way…

Approach investing like a professional athlete.

I’m not talking about how athletes manage their money… I’m talking about how they approach their sport.  They’re focused on the little things they must do to be successful.

Whether it’s a baseball player keeping their eye on the ball or a quarterback making the right play call, they’re all focused on doing things the right way.  That’s what gives them an opportunity to be successful.

They don’t stand around staring at the scoreboard.  That’s a sure fire way to lose every time, and they know it.  And the same thing goes for investors.

In other words, focus on the process not the results.

So, stop watching your brokerage account balance yo-yo up and down from day to day.  Those are the results.  And they don’t always reflect whether you’re doing the right things to be successful.

Look, sometimes your results will be better than you deserve.  And other times your results will be worse than you deserve.  That’s just how it works…

Instead of fixating on the results, your time is better spent focusing on the process of selecting the right investments.

Look, I know I’ve had my share of losing investments lately.  But just because the results haven’t been what I wanted lately doesn’t mean my process was bad.

You see, I use a sector rotation model to select investments that outperform the market at different times.  And over the long run, it generates better returns than just investing in a broad market index like the S&P 500.

And despite the mainstream press focusing on the negatives, I see opportunity.

Let me explain…

The single biggest opportunity I see over the next decade is emerging markets.

Simply put, emerging market economies are going to blow the doors off developed countries.  And the companies ready to capture this growth are going to make a killing.

But here’s the best part….

As I said earlier, I use a sector rotation model to select investments.  And my investment vehicle of choice is ETFs.

Now, thanks to a new family of ETFs from Emerging Global Advisors, investors can easily follow a sector rotation model using emerging markets.

The EGShares Global Emerging Market Sectors, or GEMS, consist of ten sector based ETFs.  They track the Dow Jones Emerging Markets Titans Index.

The Titans Index excludes South Korea, Taiwan, and other advanced economies as determined by the International Monetary Fund.

Each sector based ETF contains 30 stocks from the hottest emerging markets like China, Brazil, Russia, India, Thailand, Chile, and many more.

No doubt about it, emerging markets offer investors the best growth opportunities.  And now with the GEMS ETFs you can easily follow a sector rotation model to juice up the returns on your emerging market investments.

Remember, stay focused on the process, not the results.  If you’re going through the right process to select your investments, you’ll come out ahead in the end.

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Category: ETFs

About the Author ()

Corey Williams is the editor of Sector ETF Trader, an investment advisory service focused on profiting from ETFs and the economic cycle. Under Corey’s leadership, the Sector ETF Trader has become one of the most popular and successful ETF advisories around. In addition to his groundbreaking service, Corey is the lead contributor to ETF Trading Research, where he shares his insights about ETFs and financial markets on a daily basis. He’s also a regular contributor to the Dynamic Wealth Report and the editor of one the hottest option trading services around – Elite Option Trader.

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