The savviest of investors know this: as the economy improves, corporate balance sheets will follow. This cycle will in all likelihood cause potential long-term uptrends to develop before most investors are actually comfortable getting in.
But if you look to past recessions and recovery periods, you will notice something: those areas that tend to do the best coming out of recessions tend to be the strongest performers. Watch what’s moving, and you could stumble upon some opportunities.
Right now, many asset classes covered by ETFs are in downtrends (which we define as being below their 200-day moving average). That doesn’t mean there’s nothing out there – you just have to pick your spots and dig a little deeper to find areas that are moving.
To find those areas on our site, you have two options:
- The ETF Analyzer allows you to sort funds by performance and relationship to the 200-day moving average.
- The Alerts tool allows you to designate specific funds to watch. When those funds hit key trading signals, you’ll get an email!
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.