For example, I have been a long-time advocate for First Trust NASDAQ Dividend (TDIV). It does not have the flare of social media per se, though its concentration on cash-flow producing giants like Apple (AAPL) and Microsoft (MSFT) provides a basic level of protection; that is, investors tend to hold onto large company dividend yielders.
Moreover, many of the holdings in TDIV trade at price-to-earnings (P/E) ratios below respective historical P/Es. In other words, TDIV may be the closest thing to “cheap” in U.S. equities today.
Nevertheless, one does not necessarily need to buy at first blush. TDIV regularly pulls back to its intermediate-term 100-day trendline. Interested investors could pick some shares up at the 100-day. Or, you might elect to wait for a more substantive sell-off based on one of the scenarios describe earlier. Should a corrective period take place, you might add TDIV when it reaches its longer-term 200-day moving average.
Another ETF that I’ve been talking about since November is Market Vectors Agribusiness (MOO). First, value-oriented buyers tend to gravitate towards P/Es of 10 and P/Bs of 1.5. Secondly, unlike the bulk of broad market benchmarks that have been regularly eclipsing record highs, fertilizer producers as well as equipment makers are still in recovery mode. Third, MOO has notched “higher lows” in every month since bottoming out in September.
It follows that believers in agricultural-related businesses might find MOO attractive near where the fund’s 100-day meets its 200-day. Right now, MOO is closing in on a “golden cross,” where an intermediate-term trendline rises above its 200-day. A price pullback to that level should be rewarding.