U.S. GDP Scares Off Bears

by on March 3, 2012 | ETFs Mentioned:

Wall Street ended Friday on a shaky note, although bullish momentum throughout the week pushed major indexes into positive territory. Investors digested a better-than-expected consumer confidence report coupled with robust GDP results; economic growth on the home front came in at 3%, which helped to clear up the clouds of uncertainty looming over ongoing recovery efforts. Ben Bernanke surprised investors on Wednesday after the Fed Chairman made no hints of an upcoming round of stimulus, which sparked a sell-off in the gold futures market [see Gold Hits Resistance, Time To Worry?]. 

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance







Our picks from Monday’s Insider posted a lackluster performance this past week as our trade recommendations drifted lower, failing to build up the momentum that we had anticipated. Below, we highlight how our trade ideas fared during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every Monday, as well as access to more than 40 all-ETF model portfolios].

Trade #1 Long IYR: Up 0.2%

This recommendation endured a frustrating, uneventful trading week. IYR got off to a promising start on Monday morning as shares climbed higher right from the opening bell. However, this ETF was quick to give up gains the following days as it drifted sideways. Although price-action in IYR was quite muted, this recommendation ended up posting a small 0.2% gain as the trading week drew to a close. 

Trade #2 Long XME: Down 3.6%

XME got off to a disappointing start after it drifted sideways on Monday and Tuesday, leaving us to question our bullish suspicions. Selling pressures struck fast and hard on Wednesday after Chairman Bernanke’s testimony sparked volatile trading in the markets. Commodity prices and producers tanked across the board as inflation expectations cooled off; XME sank as low as $51.17 a share on Friday, leaving us with a dismal 3.6% loss on the week. 

Trade #3 Short EZA: Down 3.5%

This speculative short position got off to a solid start after EZA opened below Friday’s closing price. Unfortunately, our bearish suspicions were overshadowed by broad-based euphoria which helped bolster equities higher. EZA soared past our stop-loss at $70.50 a share on Tuesday, leaving us with a 3.5% loss. Our technical analysis served us well nonetheless seeing as how EZA continued higher in the days following, rising as high as $71.54 a share. 

ETFdb Portfolios

Retirement ETFdb Portfolios

Encouraging economic data releases propelled markets higher as investors cheered on better-than-expected news from all corners. Amidst the optimism, our Aggressive portfolio rightfully took the lead, while our conservative, bond-heavy Ready To Retire portfolio came in last place from a weekly performance perspective [see All Portfolio Returns].

ETFdb Portfolio Weekly Return
Aggressive 0.75%
Low Volatility 0.67%
20 Years Til Retirement 0.58%
Cheapskate 0.57%
30 Years Til Retirement 0.55%
10 Years Til Retirement 0.45%
Moderate 0.24%
5 Years Til Retirement 0.19%
Ready To Retire 0.08%

Regional ETFdb Portfolios

Investors continue to ramp up their risk appetite judging from the stellar performances that some of our “riskier”, regional portfolios are generating. Africa-Centric has returned nearly three points on the week, while even our worst performer, the Asia-Centric portfolio, managed to clinch a solid gain. 

ETFdb Portfolio Weekly Return
Africa-Centric 2.62%
Euro Free Europe 1.36%
Emerging & Frontier Markets 1.35%
Easy-As-ABC 1.34%
BRIC-or-Bust 1.08%
Ex-U.S. 0.95%
LatAm-Centric 0.65%
Ex-Europe 0.45%
Global Titans 0.43%
Asia-Centric 0.42%

Themed ETFdb Portfolios

Our themed portfolios posted a mixed weekly performance, although an overwhelming majority ended up in green territory. Our healthcare-centric Baby Boomers portfolio came in first place, followed closely by our Jim Rogers inspired Commodity Guru portfolio. Our GLD-Free Gold Bug portfolio came in last place thanks to the nasty sell-off in the gold market mid-week. 

ETFdb Portfolio Weekly Return
Baby Boomers 0.93%
Commodity Guru 0.86%
Kitchen Sink 0.77%
RAFI 0.69%
Greedy When Others Are Fearful 0.67%
AlphaDEX 0.54%
Ben Graham 50/50 0.40%
Alpha Seeker Portfolio 2.0 0.37%
Socially Responsible 0.34%
Financials Free 0.33%
High Tech 0.31%
Energy Bull 0.28%
2012 ETFdb Portfolio 0.25%
Equal Weight 0.25%
High Yield 0.16%
High Tax Bracket 0.15%
Better-Than-AGG Total Bond Market 0.05%
Small Cap 0.01%
Actively Managed -0.02%
Cheapskate Hedge Fund -0.04%
Simple (But Effective) Safe Haven -0.10%
Futures Free Commodity -0.18%
The Sky Is Falling -0.31%
Black Swan Hyperinflation -0.85%
GLD-Free Gold Bug -3.57%


Disclosure: No positions at time of writing.