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10-08-2006, 01:56 AM
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Investor's Business Daily
Managers Look Ahead To Era Of Rate Declines
Friday October 6, 7:00 pm ET
Murray Coleman
Nobody knows how long it'll take for interest rates to fall.
But a new study by Standard & Poor's has some advisers planning ahead. They're looking at exchange traded funds that might prosper if the Fed decides to lower short-term rates.
"The interim period while we're not raising or lowering rates is a time to build ETF watch lists," said John Kvale, a Dallas-based adviser. "If it's a soft landing for the economy, then our belief is that we'll gravitate much more toward higher-quality stock funds."
He's moving clients away from small-cap ETFs. The funds he favors now include S&P 500 tracker SPDRs (AMEX:SPY - News). "We're holding off right now on investing in more sector-specific ETFs," Kvale said.
If past trends hold, investors should start seeing rates drop in seven months. At least that's the finding of S&P, which looked at eight rate plateaus since 1974.
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/ibd/061006/etf.html?.v=1)
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Investor's Business Daily
Managers Look Ahead To Era Of Rate Declines
Friday October 6, 7:00 pm ET
Murray Coleman
Nobody knows how long it'll take for interest rates to fall.
But a new study by Standard & Poor's has some advisers planning ahead. They're looking at exchange traded funds that might prosper if the Fed decides to lower short-term rates.
"The interim period while we're not raising or lowering rates is a time to build ETF watch lists," said John Kvale, a Dallas-based adviser. "If it's a soft landing for the economy, then our belief is that we'll gravitate much more toward higher-quality stock funds."
He's moving clients away from small-cap ETFs. The funds he favors now include S&P 500 tracker SPDRs (AMEX:SPY - News). "We're holding off right now on investing in more sector-specific ETFs," Kvale said.
If past trends hold, investors should start seeing rates drop in seven months. At least that's the finding of S&P, which looked at eight rate plateaus since 1974.
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/ibd/061006/etf.html?.v=1)
____________________________
<a href="http://www.skousenhedgefundtrader.com/visitor.php?offer=hfs49a.html">click here to read a free report<br>
<a href="http://www.skousenhedgefundtrader.com/visitor.php?offer=hfs49a.html" target="_blank"><img src="http://www.stock-monkey.com/ads/skousen/skousen450x217.gif" alt="" border="0"></a><br>
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