Today crypto currencies are making headlines and are being shoved straight into investors’ faces just like .com stocks were several years ago. Even at the enormous risk of making poor puns, these bitcoin speculators were reveling like its 1999. Well, that’s good for them. But I am literally not buying it.
But hey! Don’t worry. I’ve come up with an alternative. The following is my list of 3 EFTs that I believe will by far outperform Bitcoin this year. Well, I selected these from the list of 90 I track daily. Not forgetting that Bitcoin could possibly surge in price in the course of this year. But just like several manias of the past, whilst there is a key value in developing blockchain infrastructure to actualize the online payment superhighway of the near future, Bitcoin and its Crypto-brethren will probably not experience price growth.
Here are three alternatives:
iShares Dow Jones US Telecom (ETF) (BATS:IYZ) – We all must agree that the Telecom sector is speedily undergoing a transition of sorts. Today we have only four primary wireless carriers, existing wireline companies are really struggling to remain relevant, providers of content in the media are a big threat and evidently, there is some kind of price war in certain divisions of the industry. But as usually the case on Wall Street, prices exaggerate, and I strongly believe that is probably going to happen in this sector. To be honest, I will take this sector anytime over Bitcoin, thank you.
ProShares Trust (NYSEARCA:SJB) – Some have called me a Grinch, simply because another “bear” fund makes it to my list. You will have to agree with me that high yield bonds are almost in their lowest yields, ever. That basically means that investors are purchasing these lower-quality bonds without necessarily demanding much of a yield premium. As a professional, I can confidently tell you that this bubble is nearly popping and it’s definitely not going to take much.
SPDR S&P Retail (ETF) (NYSEARCA:XRT) – I know most of you would say the retail stocks are as dead as the ghost of Christmas past, but in my opinion, not in the aggregate. Honestly, 2017 is the year this sector would particularly want to forget. Most investors spent their summers thinking that anyone selling anything to consumers was on the verge of being “Amazoned.” Whilst there are relatively weak players to be shaken out, which is actually normal for any industry trying to fit to worldly change, which I admit is taking place in retail. But have you noticed what they have done to the stock prices?! As I expect this year to be the most sobering for most if not all investors since 2009, scouting for popular groups of companies was coming first in my Hanukkah list. After trailing the S&P 500 by well over 16% last year (2017), I’d rather be a contrarian in this year.