How can investors use ETFs to benefit their portfolios? Tom Lydon, editor at ETFTrends.com told investors where they can look.
Use the 200-day moving average as a guide, Lydon told CNBC.
“The idea is following trends,” he said. “If you pick certain areas that you can identify trends with, you’d do very well … With ETFs and all the choices you have today, investors can easily identify when to buy when you go above the 200-day average and when to sell when you go below the 200-day average and avoid major pitfalls.”
Below are Lydon's three ETF plays in an environment where the dollar is weak, interest rates are low and gold and oil are in an inflationary state.
Lydon’s ETF Plays:
PwrShrs DB USD Bear
U.S. Oil Fund
SPDR Gold Trust
No immediate information was available for Lydon or his firm.