Profit On Volatility With ETFs
CNBC.com Writer
Adam Johnson, managing director at MLH Capital, said that in a volatile market, he sees opportunities in ETFs.
“We have found that in this kind of volatility, when the Dow is down 100 or 200 points at a moment’s notice on any given day, it’s easier to focus on ETFs than individual names," said Johnson. “You’re limiting the amount of risk that you’re taking with a given position.”
Recommendations:
PowersharesQQQ -- “QQQQs are not down as much as the broader stock market on down-days,” he said. “Buy it on the down-days on the expectation that it won’t be down as much, but they will rise more on the up-days.”
Johnson also recommended the ETFs in the healthcare sector and consumer staples sector . -- These are the places "where people are going. So that even if one name in the group blows up, you can manage the risk,” he said.
Disclosure:
Adam Johnson does not own any shares in the sectors/ETFs mentioned above.
