NEW YORK (TheStreet) — Gold’s laggard performance has been one of the more interesting stories to watch in 2012. After last year’s breakout performance, easing macroeconomic concerns and coyness on the part of the Federal Reserve regarding new rounds of quantitative easing have helped to knock the highly sought-after yellow metal from its upward path. For evidence of this disappointing showing, investors need only compare the performance of a bullion-backed gold fund like the iShares Gold Trust(IAU) to that of a product linked to a fellow member of the precious metals arena, like silver or platinum. Since the start of the year, IAU has risen approximately 5%. The iShares Silver Trust (SLV)and the ETFS Physical Platinum Shares (PPLT), meanwhile, have enjoyed gains of more than double this magnitude. Gold will be interesting to watch in the coming weeks and months as the threat of global fears persist and investors look for stirrings of life, but it is not the only precious metal-related topic to keep an eye on. Palladium may also find itself in the spotlight soon. Based on the standout performances seen from SLV and PPLT, it is clear that the opening months of 2012 have been kind to industry-linked precious metals. Some, however, have not been so lucky. Palladium, for example, has been a notable laggard, underperforming not only silver and platinum, but also gold. It remains in positive territory, but since ringing in the new year, the ETFS Physical Palladium Shares (PALL) have risen a paltry 2%. Palladium’s subpar performance in 2012 may be alarming for aggressive investors who, in the past, have turned to this inherently volatile metal for magnified gains during periods of market optimism. These individuals, however, should not give up on either the commodity or funds like PALL. Looking ahead, fundamentals indicate that palladium’s losing streak may soon end and prices could be in store for an impressive turnaround in the very near future. This week, The Wall Street Journal notes that both the supply and demand prospects for palladium are improving. In regards to the former, the report points to diminishing stockpiles in Russia. Meanwhile, continued consumer desire for automobiles in the United States and China will help to keep demand piqued. China’s efforts to reduce emissions helps to further sweeten the metal’s outlook. Palladium is used extensively in the car manufacturing industry as a key element in the production of catalytic converters. Source – TheStreet.com

NEW YORK (TheStreet) — Given its size and dominance within the consumer realm, investors holding on to products like the Market Vectors Retail ETF(RTH), the Vanguard Consumer Staples ETF(VDC), and the iShares Dow Jones U.S. Consumer Services Index Fund(IYC) should keep their eyes on the ongoing bribery-related drama facing discount retail giant, Wal-Mart(WMT). RTH is particularly vulnerable to the company’s fluctuations; shares of WMT represent nearly 12% of the fund’s portfolio. It may be surprising to some investors, but another one of the most vulnerable ETFs that will likely come from this controversy is the iShares MSCI Mexico Investable Market Index Fund(EWW). In the past, I have praised this fund as a way for investors to take aim at a relatively drama-free corner of the global marketplace. To add to the fund’s appeal during periods of market uncertainty, EWW also sets aside the bulk of its portfolio to defensive sectors like telecommunications and consumer staples. Unfortunately, however, the fund’s portfolio puts investors right on the front lines of this particular international business controversy.   Designed to provide broad exposure to the Mexican stock market, EWW lists recognizable companies including Carlos Slim’s, America Movil(AMX), Fomento Económico Mexicano(FMX), Cemex(CX) and the now-infamous Wal-Mart de Mexico(WMMVY)as some of its largest holdings. The fund is top-heavy too: Wal-Mart de Mexico, alone, represents over 10% of its total portfolio. America Movil, meanwhile, accounts for over one-fifth of EWW’s assets. 9 Stocks That Prove Dividends Make All the Difference >> As the saga unfolds, conservative-minded investors will likely be best off watching EWW from the sidelines. This event is concerning, but it also stands as an important learning experience. EWW shows how important it is to do the proper homework before diving into a product. The ETF universe has allowed individuals to tap into asset classes and nations that were once unavailable. While the growth and expansion of the industry has helped retail investors gain access to new investment opportunities and construct unique strategies, not all products are appropriate for everyone. For instance, like EWW, many internationally focused funds boast excessive exposure to very small pools of companies. Those who are too aggressive with these concentrated options can quickly find themselves in a vulnerable position in the event of a Wal-Mart de Mexico-type upheaval. Source – TheStreet.com

NEW YORK (TheStreet) — Over the past few weeks, investor confidence in the United States has been pestered relentlessly by the macroeconomic drama facing regions like the European Union and China. These crises have taken their toll on various corners of the marketplace, but one area that has managed to hold up relatively well throughout these tumultuous weeks has been the consumer. The discretionary corner of the consumer sector has seen particularly impressive action; over the most recent one-month period, the Consumer Discretionary Select Sector SPDR (XLY) has managed to maintain its footing in positive territory, even as most other SPDR sector funds linked to cyclical market segments have slid to losses. Given this recent show of resilience and the earnings calendar for the week ahead, funds designed to target top U.S. consumer destinations will likely be some of the more interesting products to watch. I encourage investors to wait until the festivities subside; but in the event that the earnings action goes smoothly, some of these products may even prove to be attractive options for those looking for a welcomed respite from the market’s global macroeconomic challenges. 4 Stocks That Are Real Sleepers in 2012 >> Consumer ETFs have been forced to prove themselves throughout the opening months of 2012. They have managed to carve out leadership roles in recent weeks, but since the start of the year, the mood toward XLY and the Consumer Staples Select Sector SPDR (XLP) has been under pressure. Whereas they stood up as beacons of stability during the choppy second half of 2011, a weak spate of economic data seen at the start of the year led some to question whether the ride was over for the consumer. These fears have proven to be short lived, however, and in recent weeks, the data have pointed to signs of strength. As a whole, last week’s batch of economic news was lackluster at best. One clear point of optimism, however, came last Monday, when investors learned that retail sales in March jumped 0.8%. In addition to beating analysts’ estimates, this marked the second consecutive month of increases. 3 Short-Squeeze Stocks for Earnings Season >> While the data have indicated a turnaround, high energy prices have remained a persistent challenge. Fortunately, even added pressure at the pump has failed to stem consumer buying habits or derail the sector. While worth monitoring, investors looking to the near term should avoid letting fuel prices dissuade them from venturing into this relatively strong market corner. Source – TheStreet.com