Advisor says corporate bonds still have legs, but currency ETFs are not one of his favorites for the new year.

 

"Big Joe" Clark has his wish list for 2009. And it includes some exchange-traded funds that even Santa Claus might find useful as stocking stuffers.

At the top are corporate bonds. In the coming year, the Anderson, Ind.-based advisor is expecting investment-grade corporates and high yield debt markets to perform like stocks do in more-normal times.

As a result, Clark is buying more of the iShares iBoxx Investment Grade Corporate Bond Index (NYSE: LQD) in client portfolios. It's a fund he held during the latter half of 2008.

At the same time, Clark is initiating new positions in the iShares iBoxx High Yield Corporate Bond Index (NYSE: HYG).

"Both are moving up in terms of prices," he said. "That means their yields are dropping some. But they're still yielding much better than Treasuries

...

Portfolio manager says those who've kept a level head in rough times should be well-positioned now to take advantage of attractive valuations. 

Kenneth Smith has been spending a lot of time lately trying to make sure that market volatility doesn't send investors into a tail spin.

As a result, the chief investment officer at Seattle-based Empirical Wealth Management says that the high net-worth and institutional clients he works with aren't ready to panic yet.  

But he credits such realistic expectations to not only this year's educational push. Smith explains that he has been sounding a similar theme when markets were running strong from 2003 through late last year. The difference, he says, is that during bull markets the message has been to not chase asset classes that are performing well. 

Now, conditions are different. But the veteran advisor and portfolio managers says keeping a level head and remaining unemotional as market volatility remains high

...