PJB Slips from 45 to 51 on the PowerShares Momentum Tracker Table, as Banks Take a Beating
Don Dion's PowerShares Momentum Tracker looks at how the banking crisis is effecting one ETF.
Williamstown, MA, June 21, 2008 --(PR.com)-- In their weekly issue released today, Fidelity Independent Adviser’s PowerShares Momentum Tracker examined the impact that the latest banking woes have had on the PowerShares Dynamic Banking (PJB) portfolio. In its regular feature, Don’s Outlook, Don Dion concludes that while PJB may have sunk in the rankings, PJB investors may be better off than those with banking ETFs from other issuers, such as iShares:
“Luckily for PowerShares investors, exposure to regional banks is limited. PowerShares Dynamic Banking (PJB) lost 1.33 percent in the past week, and 9.89 percent in the last month. Those are mild losses when compared to iShares Dow U.S. Regional Banks (IAT), which lost 5.37 percent in the past week, and 20.04% in the past month.”
Don’s Outlook goes on to admit, however, that even comparably hearty returns could not save PJB from the “undertow” in the banking industry yesterday. Fifth Third took the hot seat yesterday, as shareholders became the latest victims of big banking’s dividend slashing, stock liquidating and capital raising, with share prices losing nearly 27%.
PowerShares Momentum Tracker asserts that “at some point, investors will greet these announcements with a shrug” as every bank is seemingly getting in line to admit the forecast is more dismal than previously thought.
What might make PJB slightly more impervious than similar funds, according to PowerShares Momentum Tracker, is that the PJB’s Intellidex Index Strategy has put two banks in the fund’s top ten holdings, UMB and New York Community Bancorp, that are actually at 52-week highs.
As bad news keeps coming from banks—and even Jim Cramer vows he will not recommend another financial—perhaps PBJ will prove to be the best of the worst. In the midst of the worsening banking crisis, hopefully PBJ will find the momentum needed to lead to a rebound and climb back up PowerShares Momentum Tracker’s sector momentum table.
About Don Dion, Publisher of PowerShares Momentum Tracker
Don Dion is the publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors Don’s commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the United States and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers. http://www.fidelityadviser.com/
Mr. Dion is also president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Massachusetts, Dion Money Management manages more than $850 million in assets for clients in 49 states and 11 countries. A licensed attorney in Massachusetts and Maine, Mr. Dion has more than 25 years’ experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management. http://www.dionmm.com/
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“Luckily for PowerShares investors, exposure to regional banks is limited. PowerShares Dynamic Banking (PJB) lost 1.33 percent in the past week, and 9.89 percent in the last month. Those are mild losses when compared to iShares Dow U.S. Regional Banks (IAT), which lost 5.37 percent in the past week, and 20.04% in the past month.”
Don’s Outlook goes on to admit, however, that even comparably hearty returns could not save PJB from the “undertow” in the banking industry yesterday. Fifth Third took the hot seat yesterday, as shareholders became the latest victims of big banking’s dividend slashing, stock liquidating and capital raising, with share prices losing nearly 27%.
PowerShares Momentum Tracker asserts that “at some point, investors will greet these announcements with a shrug” as every bank is seemingly getting in line to admit the forecast is more dismal than previously thought.
What might make PJB slightly more impervious than similar funds, according to PowerShares Momentum Tracker, is that the PJB’s Intellidex Index Strategy has put two banks in the fund’s top ten holdings, UMB and New York Community Bancorp, that are actually at 52-week highs.
As bad news keeps coming from banks—and even Jim Cramer vows he will not recommend another financial—perhaps PBJ will prove to be the best of the worst. In the midst of the worsening banking crisis, hopefully PBJ will find the momentum needed to lead to a rebound and climb back up PowerShares Momentum Tracker’s sector momentum table.
About Don Dion, Publisher of PowerShares Momentum Tracker
Don Dion is the publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors Don’s commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the United States and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers. http://www.fidelityadviser.com/
Mr. Dion is also president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Massachusetts, Dion Money Management manages more than $850 million in assets for clients in 49 states and 11 countries. A licensed attorney in Massachusetts and Maine, Mr. Dion has more than 25 years’ experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management. http://www.dionmm.com/
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Contact
Dion Money Management, LLC
Donald R. Dion
1-800-432-7447 ext. 191
www.dionmm.com
Donald R. Dion
1-800-432-7447 ext. 191
www.dionmm.com
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