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-   -   Ben Stein: XLF - Financial SPDR (http://archives1.twoplustwo.com/showthread.php?t=555726)

ItalianFX 11-27-2007 05:20 PM

Ben Stein: XLF - Financial SPDR
 
I read an article on Yahoo Finance written by Ben Stein and he suggested buying XLF for the long-term. He basically said that investments do the best when people hate them, and the Financials aren't doing so hot lately.

I've been looking into buying some index funds/ETFs in my IRA since I have money just sitting there and was thinking about putting some in XLF.

Anyone have any advice? What about other areas to invest in? I was also looking into some Emerging Markets.

I'm 24 now, and have 7500 in my IRA. That will give me a good 40 years. I should have more money in there, but I haven't contributed to my IRA in a couple years because I don't have enough income to put it towards something I won't be able to get out of.

pig4bill 11-28-2007 05:06 AM

Re: Ben Stein: XLF - Financial SPDR
 
He's been saying that for awhile. And he's been wrong the whole time. If he thinks people hate financials now, he'll get a real eyefull 6 months from now.

Zygote 11-28-2007 08:47 AM

Re: Ben Stein: XLF - Financial SPDR
 
[ QUOTE ]
He's been saying that for awhile. And he's been wrong the whole time. If he thinks people hate financials now, he'll get a real eyefull 6 months from now.

[/ QUOTE ]

im short XLF. ben stein is crazy. you should really stay on the sidelines if you aren't aware of the problems brewing.

Parallax 11-28-2007 10:32 AM

Re: Ben Stein: XLF - Financial SPDR
 

[ QUOTE ]

Anyone have any advice? What about other areas to invest in? I was also looking into some Emerging Markets.



[/ QUOTE ]

I would definitely invest in VWO or EEM before buying XLF.

tippy 11-28-2007 10:44 AM

Re: Ben Stein: XLF - Financial SPDR
 
ItalianFX,

I'd probably go for the financials. You got 7500 to invest. Break it into three chunks and average it in. Put 2500 in now since the market has "corrected" 10%. If it truly is a correction, then the 2500 will show a profit when the market resumes its uptrend. If it isn't a correction, but rather the first leg of a downtrend, then you can pick two more points on the way down to put in your other two 2500 chunks. You should be able to get a pretty good entry point as your basis for the next 40 years.

I'd stay away from the emerging markets right now. They have run up. If the dollar turns stronger, these investments aren't going to look real good comparative to the US assets.

ItalianFX 11-28-2007 11:05 AM

Re: Ben Stein: XLF - Financial SPDR
 
[ QUOTE ]
[ QUOTE ]
He's been saying that for awhile. And he's been wrong the whole time. If he thinks people hate financials now, he'll get a real eyefull 6 months from now.

[/ QUOTE ]

im short XLF. ben stein is crazy. you should really stay on the sidelines if you aren't aware of the problems brewing.

[/ QUOTE ]

I probably wouldn't invest in it now, but maybe in the near future? The financials are not going to stay down forever, and it may be the best buying opportunity when all is said and done.

ItalianFX 11-28-2007 11:08 AM

Re: Ben Stein: XLF - Financial SPDR
 
[ QUOTE ]
ItalianFX,

I'd probably go for the financials. You got 7500 to invest. Break it into three chunks and average it in. Put 2500 in now since the market has "corrected" 10%. If it truly is a correction, then the 2500 will show a profit when the market resumes its uptrend. If it isn't a correction, but rather the first leg of a downtrend, then you can pick two more points on the way down to put in your other two 2500 chunks. You should be able to get a pretty good entry point as your basis for the next 40 years.

I'd stay away from the emerging markets right now. They have run up. If the dollar turns stronger, these investments aren't going to look real good comparative to the US assets.

[/ QUOTE ]

I don't want to put all of my money into one thing. I'm looking at either 2 or 3 different index funds or ETFs. I do realize that the Emerging Markets have made a good run, and you're right, I should probably look for something else. I used to hold a Small-Cap ETF and a Dividend ETF and they did pretty well for me over a 2 year period. I just don't know where to go now, but I'm looking into holding them for a long period of time and so short-term variance is not a big deal.

tippy 11-28-2007 11:20 AM

Re: Ben Stein: XLF - Financial SPDR
 
My bad, I didn't understand that you weren't putting it all there. Probably go with 2500, divided into three $833 chunks, but fees might make this futile.

Who is your 401k through? My wife has Fidelity and it sucks. We don't even get the option of ETFs. You are lucky to get those choices.

ItalianFX 11-28-2007 11:23 AM

Re: Ben Stein: XLF - Financial SPDR
 
[ QUOTE ]
My bad, I didn't understand that you weren't putting it all there. Probably go with 2500, divided into three $833 chunks, but fees might make this futile.

Who is your 401k through? My wife has Fidelity and it sucks. We don't even get the option of ETFs. You are lucky to get those choices.

[/ QUOTE ]

It is a Roth IRA and it is through Fidelity.

tippy 11-28-2007 11:26 AM

Re: Ben Stein: XLF - Financial SPDR
 
I think her company, AstraZeneca, limited the plan choices we get. Pretty much all I have to choose from is VIGIX, VIIIX, VIVIX, PRSVX, GTIIX, FOCPX and money market.


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