Our market’s troubles have been slamming both global exchange traded funds (ETFs), and in turn, it’s boomeranging right back around and hitting mega-caps.

European and Japanese companies are suffering as much or more than U.S. large-cap companies, and growth and profit numbers are pointing toward possibility of a global recession, although we are not technically experiencing one right now, reports Carl Delfeld for ETF XRAY.

In the last week, the Dow is down 2.5%, while the S&P 500 is off by 4.2%. Asia is down about 5%, and Latin America has lost about 12.3% in that same time period.

Sharp pullbacks such as these can provide investors with opportunities to position themselves, but we think they should stick to the strategy of waiting until these areas cross back over their 200-day moving averages.

  • iShares S&P 500 Growth Index (IVW): down 15.2% year-to-date; down 11.4% in the last three months
  • iShares S&P 500 Index (IVV): down 16% year-to-date; down 9.7% in the last three months
  • iShares S&P 500 Value Index (IVE): down 16.9% year-to-date; down 7.8% in the last three months

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.