In this episode of Talking Trading Gary Stone from Share Wealth Systems discusses why ETFs are GAME CHANGERS on the world markets. With lower volatility than individual stocks ETFs are like Goldilocks and Baby Bear – they are JUST RIGHT for every type of investor and in Gary’s view should become the backbone of investors’ portfolios. Plus also hear the beginnings of the bears’ stampede around the world in our market wrap.
Market Wrap – Chris Weston Chief Market Strategist IG Markets
There is a market sell off around the world.
The bears started growling in the USA as the S&P 500 finally broke through convincing support levels. Meantime in Australia there is a bloodbath – influenced by both the heavy Asian downturn and market action in the USA that has sent the bears stampeding Down Under.
Gary Stone – ETFs
What do ETFs and Goldilocks have in common?
They are just right.
Just like baby bear’s porridge, chair and bed were just right for Goldilocks – ETFs are JUST RIGHT for every type of investor and in Gary’s view should be the backbone of investor’s portfolios.
With lower volatility than individual stocks ETFs are designed to track the index offering a long-term portfolio view for investors of all categories.
Warren Buffet has famously said that when he dies he wants his wife to invest ALL her money into Vanguard’s ETF.
So if ETF’s are so effective as a portfolio tool why has Australia been slow on their uptake of them? Only 1% of Australian investors use ETFs compared to 10% of investors in Canada and the USA.
Find out in this interview with Gary and also hear which are the most popular ETF’s to use.
Gary has also released an ETF strategy called SPA 3 ETF that brings longer-term timing to ETFs. To find out more about ETFs, and pick up a free Special Report on the ‘5 Smart & Simple Ways to Grow Your Super’, click here.
Highlights of Talking Trading are also available on Louise Bedford’s Soundcloud.
Additional Music by Kevin MacLeod http://www.incompetech.com