ETF Trends
ETF Trends

Global exchange traded funds (ETFs) represent a good opportunity to take advantage of the continuing strong performance of the global economy. The International Monetary Fund predicts an energetic world economy for 2007-2008 but the biggest powerhouse, the United States, will experience its weakest growth in five years, reports Jeannine Aversa for AP. The IMF forecast projects the world economy to grow by 4.9% over the next two years.

The U.S. economy is expected to grow 2.2% this year, the slowest since 2002, when it was recovering from a recession. After a 5 year real estate boom, the downturn in the U.S. housing market seems to be having a deeper effect than projected. Fears about inflation could become evident if oil spikes again like last summer.

Michael Krause with AltaVista Independent Research points out iShares MSCI EAFE (EFA), which tracks an index of developed-economy stocks, has outperformed the SPDR (SPY) since 2003, 162% vs. 79%.


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.