3 Insurance Funds to Survive the Coming Crash

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1 Doug Fabian s SPECIAL REPORT For Successful ETF Investing Subscribers and ETFU.com Members Only 3 Insurance Funds to Survive the Coming Crash Doug Fabian Editor, Successful ETF Investing

2 IMPORTANT NOTE: This special report is for information and educational purposes only, based on current data as of July Do not buy or sell any investments until you have read the current issue of Successful ETF Investing or an update from Doug Fabian. 3 Insurance Funds to Survive the Coming Crash Copyright 2015, by Doug Fabian. All rights reserved. No quotes or copying permitted without written consent. Published by: Eagle Products, LLC 300 New Jersey Ave., NW #500 Washington, DC / CustomerService@Fabian.com Website:

3 3 Insurance Funds to Survive the Coming Crash Introduction Dear Investor, The next 2008 Moment could be imminent despite Vanguard s tepid warning to its advisors. The facts speak for themselves. By almost any metric, stocks are overvalued and at historic proportions. What that means is this When the next 2008 Moment does arrive, the market could tumble farther and faster than anyone can imagine. And if you aren t already in investments designed to keep you money safe from this coming meltdown, you could lose 30% or more of your portfolio s value. I don t know anyone who can take that kind of hit, again. That s why I m urging you to get into the 3 recommendations in this report right now, before the music stops and you find yourself without a chair. These safe havens (I call them Insurance Funds ) are your best bet to protect your wealth from the coming storm and even make money during it, while the majority of U.S.-based investors get crushed. I won t take up another second of your time. Enjoy the report. Yours for bigger ETF profits, Doug Fabian Editor, Successful ETF Investing

4 3 Insurance Funds to Survive the Coming Crash 1. Market Vectors Gold Miners ETF (GDX) Gold is a classic investment for those with the foresight to see a crisis coming before it arrives. If you believe all is right in the world, then don t bother, but if you re like me, you see a need for the yellow metal in your portfolio. In the last crash, gold went through the roof because investors flock to its intrinsic value when other options look shaky. The next crash should be no different. So if you re with me, how do you own gold? From an investment point of view, in terms of liquidity and upside growth potential, I think precious metal ETFs are a great way to do it. You could own physical gold, but I think that there is more upside to be had in mining companies, and that is exactly what you get with GDX. It invests in all the big names in gold mining, like Goldcorp, Barrick Gold and Newmont Mining. This still subverts the risk of trying to choose a single company but gives a strong exposure to gold. This position will thrive in the next stock market crash.

5 stockcharts.com 7/23/15 2. ProShares Short S&P 500 ETF (SH) When looking for an investing option for any situation, sometimes the best solution is the most salient one. So, now that we re bearish, why not consider a classic bear investment? This is an inverse fund, which means that it is calculated to deliver roughly the opposite returns of the index it tracks. In this case, we use the S&P 500, the most common and respected U.S. market barometer. When the market goes down, SH will go up. However, it s not exactly the same as shorting every stock in the S&P. SH achieves these inverse results by using index swaps. ProShares, the provider of SH, makes agreements with various banks to pay a small amount of interest in return for being compensated according to the value of the S&P. These tools have become immensely popular among financial institutions and are difficult for individuals to obtain. These contracts have value, which impacts the price of SH.

6 In essence, however, this is a play on the S&P falling, and it simply uses nonmarket securities in order to accomplish this. In a heavily bearish market, there are plenty of profits that could be made here. stockcharts.com 7/23/15 3. WisdomTree India Earnings ETF (EPI) My third idea for you is in many ways equally simple. If you seek insurance against a crash in the U.S. market, one of the smartest things you can do is to avoid the U.S. market by taking advantage of the strongest overseas trends. As they say, there s always a bull market somewhere, and right now, I think India is one of the best prospects available. India is an interesting country for investors, because it holds the promise of significant growth potential. Its unique characteristics include a population that is young compared to developed nations, the presence of some world-class universities and the availability of many employable, English-speaking people. But the country has been mired in regulatory obstacles and other problems that have held it back from achieving

7 higher growth rates in the past. However, 2014 s election of a new, pro-business prime minister makes now a good time to consider investing in it. Some observers anticipated that this economic expansion would occur relatively quickly, as it has in some other Asian countries that have modernized and adopted business-friendly policies. Indeed, India has been a world market leader of late, thanks to Prime Minister Modi s business-friendly policies. In addition, not only is EPI a way to invest in India, which seems poised to prosper, but this ETF has an earnings-focused investment strategy. When a company has strong earnings and is very profitable, that is undeniably a bullish indicator. Applying this lens to the Indian situation can make investing in WisdomTree India Earnings ETF (EPI) potentially even more appealing. stockcharts.com 7/23/15

8 Doug Fabian is the editor of the free weekly e-letter, Weekly ETF Report, and his paid financial newsletter Successful ETF Investing. Both are published by Eagle Financial Publications. He also has a new website, ETF University, or ETFU.com, designed to educate investors about the benefits of exchange-traded funds. Doug Fabian Doug has helped his readers successfully navigate bull and bear markets for more than 30 years. His flagship advisory service, Successful ETF Investing, has produced double-digit percentage annualized returns since Doug often appears on CNBC, CNN and Fox News, and he has been featured in The Wall Street Journal, USA Today, The New York Times, Fortune, Smart Money and Barron s. Doug became a member of the SmartMoney 30 in 1999 a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known trend follower among the $56 billion (and growing) group of financial advisers. In 2001, Doug wrote Maverick Investing, published by McGraw-Hill. Doug has become known for his expert knowledge and timely use of innovative tools such as exchange-traded funds, bear funds and enhanced index funds to profit in any market climate.

9 INSCC Eagle Products, LLC 300 New Jersey Ave. NW #500 Washington, DC /