
Most investors view 2008 as an unmitigated disaster. Yet for the ETF industry, there was a definite silver lining.
Most investors view 2008 as an unmitigated disaster. Yet for the ETF industry, there was a definite silver lining.
With all the turmoil in the markets in 2008, there was a rather widespread flight to safety. Problem is, there weren't exactly a lot of safe havens. Almost every asset class was in the red at the end of the year—commodities, real estate, developed markets, emerging markets, corporate bonds … you get the picture. As a result, much of the mass exodus from those "unsafe" areas of the markets ended up in just two places: cash or short-term bonds.
Taking a low-turnover GARP approach to core ETF portfolios, ex-Montgomery Securities money managers overlay an options strategy.
As investors end the year by flocking into ETFs, they keep putting money into parts of the market that mutual fund investors are dumping.
John Serrapere says he's managing to stay one step ahead of most hedge fund managers by avoiding the "silver bullets" of investing.