Last September, I said the new PowerShares Global Coal Portfolio(PKOL Quote) was well-constructed but poorly timed in light of the bear market. Now, it might be a good time to revisit this exchange traded fund.
Coal stocks are generally more volatile than large oil companies. Adding more potential volatility to a portfolio during a bear market is probably a bad idea. Instead, investors should boost volatility after a big decline or as stocks rise. The market might be at that point now.
In that first article, I compared the PowerShares Global Coal Portfolio to the Energy Select Sector SPDR Fund(XLE Quote), noting that the PowerShares fund would decline more in a down market. That trend played out, but the coal fund has since rebounded, soaring 69% this year as the SPDR fund rose 1.7%. ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,318.16 | 1,091.38 | 2,146.04 | 33.56 |
Oil *
77.53
|
|
DOWN
14.28
|
DOWN
3.52
|
DOWN
10.78
|
UP
0.07
|
10 Yr
3.36%
SPDR Gold
112.94
|
|
-0.14%
|
-0.32%
|
-0.50%
|
+0.21%
|
Data delayed 20 minutes |
Connect with TheStreet