• Skip to primary navigation
  • Skip to main content
Mullooly Asset Management, Inc

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Services
    • Wealth Management
    • Financial Planning
    • Retirement Planning
    • Investment
    • Estate Planning
  • Our Fees
  • About
  • 732-223-9000
  • Schedule A Meeting

Services

  • Wealth Management
  • Financial Planning
  • Retirement Planning
  • Investment
  • Estate Planning

Quick Links

  • About
  • Our Fees
  • Videos
  • Podcasts
  • Blog

Support

  • Contact
  • Client Login
  • Pay Bill Online
  • Form CRS
  • Our Process
Follow us on Facebook
Follow us on Linkedin
Follow us on Twitter
Watch On Youtube

Let’s talk

The Exchange Traded Funds (ETF) Explosion

February 11, 2007 by Thomas Mullooly

ETF’s are exploding, there are dozens being created every month.

You can own an ETF that:
-Owns every stock in a sector, or
-Owns every stock in an index (like the Dow Jones, or the S&P Small Cap 600); or
-That’s leveraged (called an “ultra” basket), where you get 150% or 200% of the move in a sector.
-Sells short an entire sector (called an “inverse” basket).

There are also ETF’s that are leveraged short baskets (leveraged stocks sold short).  If you think a sector will decline, you can really put your money where your mouth is.

Look, this gives us a TON of tools at our disposal — no matter what the current market conditions.

Here’s why this matters:

80% of the price move in a stock is directly attributed to the current conditions in the sector and the market overall.

Meaning only 20% of a stock’s price change is from the fundamentals.

This was from a book written in 1964, titled The Latent Statistical Structure of Securities Price Changes by Benjamin F. King.

But wait — people spend 80% of their time (or more!) evaluating fundamentals — and spend only 20% (or less) of our time on sector and market evaluation.

So, if 80% of the move in a stock is determined by:
-Whether the market is on offense, and by
-Identifying which sectors are in favor (or out of favor)

Well, if we had tools that could let us buy (or short) an entire
sector, we would probably have better performance.

And now we do have these tools.
They’re called Exchange Traded Funds, or ETF’s.
.

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Asset Management

About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.

1971 State Route 34, Suite 102
Wall Township, NJ 07719

  • 732-223-9000
732-223-9600
  • support@mullooly.net
  • Services
  • About
  • Our Fees
  • Contact
  • Form CRS
  • Videos
  • Podcasts
  • Blog
  • Client Login
  • Pay Bill Online
  • Our Process

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

© 2022 Mullooly Asset Management Inc. All Rights Reserved.

  • Privacy
  • Disclosures and Legal Disclaimers
  • Privacy
  • Disclosures and Legal Disclaimers

© 2022 Mullooly Asset Management Inc. All Rights Reserved.