The markets have gone all topsy-turvy in the last several days, sending many exchange traded funds (ETFs) south and well below their long-term trend lines. But there are still ETFs above their 200-day moving averages that can serve as safe havens in these uncertain times.
Gold. Gold has been dancing around record prices for the last week or so, thanks to concerns about eurozone debt, worries about the impact on our own recovery, inflation worries and general interest in the metal as a safe-haven instrument. [4 Reasons Gold ETFs Are Surging Again.]
- SPDR Gold Shares (NYSEArca: GLD) is 8.2% above its 200-day moving average.
U.S. Dollar. While the euro has gone into a nosedive, the U.S. dollar has been gaining against most major currencies around the world. It’s now at a four-year high against the eurozone currency. Currency observers believe the euro’s decline against the dollar has more than just momentum behind it. For instance, business cycles favor it, with the American recovery much stronger than that of the eurozone. The European Central Bank also won’t be raising interest rates anytime soon. [The Dollar ETF Has Its Moment in the Sun.]
- PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP) is 6% above its 200-day moving average.
Japanese Yen. The crisis in Europe has sparked a flight to quality and risk aversion, sending investors scurrying to the Japanese yen. Also benefiting the currency is the fact that the fundamental picture in Japan’s economy has improved. Exports have pushed the current account surplus to a two-year high of $27.2 billion. [Japanese Yen ETF Shines.]
- CurrencyShares Japanese Yen (NYSEArca: FXY) is 2.5% above its 200-day moving average.
Treasury Bonds. The eurozone crisis has pushed Treasury prices higher as investors bet that inflation will remain low for some time. Yet again, investors are seeking low-risk U.S. government debt as the euro dropped and stocks slid on ongoing concerns that struggling euro-zone nations will be unable to lock in the spending cuts and tax increases that are needed to reduce their deficits. [Treasury Bond ETFs Winners.]
- iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) is 5.9% above its 200-day moving average.
Municipal Bonds. Yields on Treasuries are being pushed to even lower levels as a result of the increased interest in them, so investors are now turning to munis for something slightly better and more favorable tax-wise. Although, we should note that yields on munis are at eight-week lows themselves. That’s of no matter to investors, who snapped up $10 billion of state and local debt this week.
- PIMCO Intermediate Municipal Bond Strategy (NYSEArca: MUNI) is about 1% above its 200-day moving average
Read the disclosure; Tom Lydon is a board member of Rydex|SGI.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.