WisdomTree: Prepare for Volatility

Crying Stocks

Barron's weekend piece could cut WETF this week.

Last month we told our readers to load up on WisdomTree Investments, Inc. (WETF), now that party could come to temporary halt.  You couldn't expect the party to last forever.

Since our recommendation shares of WETF have jumped 13% and more than 50% in 2013.  Needless to say if you have enjoyed the run take some off the table.  If you haven't then prepare for the impact from Barrron's mixed bag article 'Can WisdomTree Grow Taller?'

WETF can keep heading higher but after such a big jump any negative impact could move the stock 5 to 10% on headlines alone.  The popularity of WisdomTree Japan Hedged Equity Fund (DXJ) has put the company in the spotlight but can the trend continue?  A new ETF seems to come out weekly and the space is crowded.

Bottom line: ETFs are a wonderful tool, but even at this level WisdomTree has to convince traders its stock is not going to fall.