Sings of a recovery are looming on the global horizon, and the numbers are evident in exchange traded funds (ETFs) from domestic and foreign markets, bonds, currencies and commodities.
Many ETFs have been trending higher in recent weeks, says Gary Gordon for ETF Expert. The pattern of the funds recovering indicates that while investors are more willing to take on risk than they were a year ago, there is still some fear lingering.
The stimulus package is proving to lead to increasing business access to credit and government-stimulated GDP.
Some of the ETFs that have been on the move by varying degrees in the last month or so include:
- iShares Investment Grade Bond (LQD)
- iShares High Yield Junk (JNK)
- SPDR International Treasury Bond (BWX)
- JP Morgan Emerging Market Bond (EMB)
- iShares S&P Preferred Index (PFF)
- iShares Lehman Treasury 20-Year Treasury Bond (TLT)
- Vanguard Total U.S. Market (VTI)
- Vanguard Developed Europe Pacific (VEA)
- Vanguard MSCI Emerging Markets (VWO)
TLT’s presence on the list is evidence that there’s still some worry hanging around. Treasury debt prices rose on Wednesday, in fact, as investors wondered whether the recovery had staying power, reports John Parry for Reuters. Investors also don’t seem to be up for taking on much risk via commodities, Gordon points out.
There will still be market pullbacks and corrections as well as profit-taking, but pick your spots. There are several areas that are in uptrends – you just have to look for them. At ETF Trends, we use the 200-day-moving-average to spot market trends and patterns.
For more stories about trend following, visit our trend following category.
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.