Dorsey Wright Offers Technical ETF (PDP)
Dorsey Wright offers a technically managed PowerShares ETF (PDP) based on relative strength that you can purchase right on the market. As you can see in their index performance chart, they have outperformed the market significantly. You can see that the correlation between the two portfolios is very similar. Dorsey Wright, however, has done a very good job of magnifying reward while minimizing risk. Specifically, you can see the enormous run they had in the last leg of the internet bubble.
If you’ve been reading my stock market overview articles, you’ll know that it’s a strong possibility that we could be approaching the last leg of this bull market. Of course, the last run-up of most bull markets can promise significant gains. With the international and commodity boom currently in place, PDP is in a prime position to outperform the market. Investing in this ETF is like being a technical trader without doing all the work. If you want the potential for exponential returns using a strategy that has been limited to institutional investors and the smartest money managers, you should strongly consider PDP before it goes parabolic.