ETF Radio Show

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What Facebook’s IPO and JP Morgan’s Trading Error have to do with ETFs

Listen to The ETF Store Show every Saturday at 4pm on KCMO Talk Radio 710AM as we cover everything you need to know about Exchange Traded Funds and the world of investing.

On our most recent radio broadcast, we discussed a number of key headline events currently permeating the financial markets, including the much anticipated Facebook IPO and JP Morgan’s massive trading error.  Investors in both of these companies have rudely found out, if they weren’t already aware, that investing in individual stocks (and especially IPOs) can pose significant challenges.   As regular listeners of our radio program know, we talk all the time about the inherent riskiness involved in trying to select individual stocks.  There are just too many factors, many of which may be unknown to investors (see Morgan Stanley’s lack of disclosure regarding Facebook’s revenue estimates), which can derail what seem to be good stock picks.  That’s not to mention that individual investors are trying to compete against Harvard MBAs working 80 hours a week on Wall Street with direct access to the CEOs and CFOs of the companies they’re trying to invest in.  Add in the fact that from 1989 – 2008, 21% of all stocks listed in US markets became bankrupt and you’re looking at a recipe for underperformance.  Simply put, statistically, you’re much better off investing in low cost, passively managed investments such as equity ETFs than trying to select individual stocks.

All that being said, we realize that there are some investors who are determined to bet on companies like Facebook and JP Morgan.  So we’d be remiss if we didn’t mention that there are ETFs that will allow investors to gain exposure to both of these companies without putting all of their eggs in one basket.  If you must invest in Facebook or JP Morgan, listen to our full show here to learn more about which ETFs you can look at to gain exposure.  You can also listen to our most recent weekly market update.

Is Your Portfolio Missing Alternative Assets?

Listen to The ETF Store Show every Saturday at 4pm on KCMO Talk Radio 710AM as we cover everything you need to know about Exchange Traded Funds and the world of investing.

On our most recent radio show, we discussed an area of investing that, unfortunately, seems to be a relative unknown to many investors and even professional investment advisors – alternative assets.  By alternative assets, we’re referring to investments like gold, commodities, and real estate.  Far too many investors are missing these critical components in their portfolios – components which can offer diversification benefits and serve as inflation hedges.  Part of the problem is that, up until a few years ago, many of these asset classes were unavailable to everyday investors or simply too difficult to invest in.  If you wanted to invest in oil, for example, you had to be prepared to play the futures markets or store barrels of oil in your backyard.  With the proliferation of ETFs and other similar exchange traded products, investors can now easily and cost effectively access alternative assets such as oil and build a truly diversified portfolio.

We also discussed some of the specific alternative asset exchange traded products to consider for your portfolio including DJP, IAU, and VNQ.  If your advisor has you in a cookie-cutter portfolio of only stocks and bonds, listen to our full show here to learn more about how ETFs and The ETF Store can help you open up an entire new world of investing.

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