Lajuana buys IYT 140.82: Most importantly, I have been systematically raising the cash level in client accounts for months. 20%, 25%, 30%, depending on client risk tolerance.

I continue to favor treasuries and investment grade over higher yielding bonds. Yet I continue to favor large-caps over small-caps, domestic over foreign. Might this suggest that banks in the UK (as well as banks that use LIBOR for mortgages) are growing concerned about lending to one another? Worse yet, the London Interbank Offered Rate, or LIBOR, has been rising for the better part of the last 12 months. Worse yet, revenues have declined for two consecutive quarters.


Carol:
I am not suggesting that investors should abandon all of their risk assets.

Mertie:
Time and again, history has shown that when more and more sectors are falling apart, the pressure on the remaining sectors becomes overwhelming.

Indira:
Mix in a central bank that expresses a desire to hike borrowing costs when the global economy is decelerating, commodities are plummeting and credit spreads are widening, and even the mightiest success stories begin to get victimized.

Steffanie:
The iShares Dow Jones Transportation ETF (IYT) has already corrected nearly 11% since the end of QE3/QE4, while the Dow Jones Industrials is in the same place that it started.

Alena:
The same phenomenon occurred shortly after the end of QE2. The S&P 500 fell 19.4% in a bearish sell-off.

Carisa:
So investors should definitely be cautious while entering this space.

Inger:
However, many of the segments that makes up for these ETFs hold the worst Zacks Industry Rank and thus could demand more downside in the days ahead.

Kristi:
It has accumulated $263 million in its asset base.

Louann:
The product is the low cost choice in the energy space charging just 12 bps in annual fees and trades in solid volume of about 232,000 shares.

Inge:
In terms of industrial exposure, oil, gas & consumable fuels accounts for nearly 81.9% of the portfolio while energy equipment & services take the remainder.

DJ Transportation Average Ishares (AMEX:IYT)
//stockhand.net/us/?q=amex%3Aiyt&id=312648