Exchange traded fund (ETF) investors, naturally, are looking to shield themselves from the roar of the bear. Most defensive hideouts are not safe, as even utility exchange traded funds (ETFs) are reeling.
Over the first 12 trading days of January, utilities ETFs still had the top-performance spot, and the decline was slow at 2.5%.
Last week, the panic began. Utilities, basic materials and energy all fell. The biggest slide came Tuesday, after the emergency rate cut by the Federal Reserve. The interest rate fear, mixed with recession worries have affected, among others:
Both funds experienced slides of up to 3.5%. The fear is undermined by the threat of global infection from the U.S. markets.
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.