January 11, 2008 at 3:00 pm by Tom Lydon
Historians and investors are about as split as economists as to which way the market will go, but there are exchange traded funds (ETFs) that most can seem to agree on.
No matter what the market, bear or bull, the world still needs
utilities to get by. Whether it is the global growth, the yield, or the
supposed safe-haven status, utilities remain in demand. iShares Global Utilites (JXI) and WidsomTree International Utilities (DBU), while both down slightly in the last month, remain above their trendlines.
As of now, around three out of four stocks are trading below their 200-day moving averages, reports Gary Gordon for ETF Expert. Historians are likely turned off by the first five trading days of January which typically send a vibe about the possible outcome of the days and months ahead. When the first five trading days are negative, results are unattractive.
Gordon reminds us that the market moves higher on certainty and lower on uncertainty. A recession doesn’t cause stocks to fall, it is the uncertainty about rough times ahead that causes volatility and sell-offs.
Tags | Emerging Markets, Energy, Utilities
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