|UNKNOWN||NORTH AMERICAN - LARGE & ETFs||_N/A|
Educational Segment. It is the 10th year anniversary of the show. He often gets the comment that he is always bearish. But he thinks he is optimistic. He looks at the risk side before the returns side of investing. Beta is the sensitivity to the market risk. When he is considering buying anything he thinks about the risk index. ZEB-T graph compared to the world index looked at the weekly return and then he finds the trend. The slope of .65 tells him the sensitivity to the world index. At this level about 50% is related to sector risk. He decides how much of the decision relates to the world, or to sector or to the specific stock. XEG-T is the Canadian energy sector, compared to the world it is more sloped, meaning it is more risky. He needs to weigh the macro factors more in this case. SU-T has a lower correlation to the energy sector because there is less risk and that is because of their refining business. Energy is starting to look interesting now.
Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc. http://www.etfcm.com