But next year, the economy is forecast to grow 2.3%, reports Jeannine Aversa for the Associated Press. The unemployment rate averaged 4.6% last year, and it will move higher, hitting 5.3% this year and 5.6% the next.
If weakness in the housing sector hits bottom this year and starts to make a turnaround, the economy should follow suit – it’s been cited as the factor most responsible for the mess we’re in.
All of this news affects ETFs that focus in on a number of areas. In particular, some of the funds that could be directly affected by these events include:
- United States Oil (USO), up 35.1% year-to-date
- United States Gasoline (UGA), up 17.8% since Feb. 28 inception
- SPDR S&P Homebuilders (XHB), up 13.7% year-to-date
- First Trust S&P REIT Index Fund (FRI), up 10.2% year-to-date