last few days have includedTiffany's (TIF), Big Lots (BIG) andJ.Crew (JCG). As the economy continues to strengthen, I see this trend continuing over the next few months. Many smart retailers got lean and mean during the recession, and I think that we'll see an ongoing rebound as sales improve. XRT is a well diversified fund which I've discussed extensively .. The fund covers everything from high-end retailers, like TIF, to budget buys, like Target (TGT). XRT is a great way to gain exposure to retail while reducing security-specific risk.  | PowerShares Water Resources (PHO)As the heat turns up, investors should take a dip in PHO. While this fund sounds like a fun summer buy, there's some | great fundamental reasons why it should do well in the short term. As I mentioned in a recent blog most of the planet is covered in water, but only 1% of the water on the planet is consumable at any given time. That small percentage is expected to quench the thirst of the entire globe's population. That population is forecast to grow by more than a billion over the next 15 years, straining water supplies even further. Ultimately, keeping the world well watered will be a monumental task for a select few companies. PHO tracks firms that are involved in water purification and distribution. As we've seen on the news lately, man-made mistakes can cause danger to our water supply (BP) I bet there'll be a lot of focus on clean water in the months ahead. |  | SPDR KBW Regional Banking (KRE)While I believe that a broad economic recovery will definitely involve a significant recovery for the entire financial sector, I think that the largest | Wall Street firms could feel pressure in the short term. Firms like Goldman Sachs (GS) and JP Morgan (JPM) will bear the brunt of new reforms and ongoing anger. While I think that they will ultimately succeed in the long term, expect troubles in the short run. That's why I like KRE as a summer pick on financials. Regional banks, like the ones in this portfolio, should continue to benefit from low rates and government incentives. As the economy improves, I believe that this group will be the fastest to move to the upside in the financial sector. KRE is a great way to gain exposure to these potential winners.  | 4. ETFS Physical Platinum Shares (PPLT) and 5. ETFS Physical Palladium Shares (PALL) | Picks 4 and 5 should come as no surprise to readers, or investors monitoring the voracious appetite for precious metals. Introduced earlier this year, PPLT and PALL are the first two physically-backed ETFs to offer exposure to platinum and palladium. While it may be best known as a jewelry metal, platinum's primary use is in the creation of catalytic converters. With auto sales picking up and emissions standards rising, I think that PPLT and PALL should continue to perform well in the next few months. As a side note, I also think some investors are becoming wary of the booming size of physically backed gold ETFs, like SPDR Gold Shares (GLD). While I don't believe that there's any reason for concern, I do think that investors will look to precious-metals alternatives in the months ahead... possibly helping PALL and PPLT to keep growing.  | PowerShares QQQ (QQQQ)I've discussed my reasons for liking QQQQalready today, so I'll be brief here. I think that Apple (AAPL) has great | upside potential in the short term, and this Apple-heavy fund is the way to play this stock while mitigating security-specific risk. QQQQ is also a good core position for broad market recovery, which I expect to continue throughout the summer. |
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