ETF Trends
ETF Trends

The markets have plunged to August lows, and some market observers believe the selling is overdone. For those who believe in a market rebound but are still wary of potential turns, look to steady dividend-paying stock exchange traded funds.

PIMCO global economic advisor Joachim Fels said that while recent data shows the economy slowed in the fourth quarter, the news should not have been a shocker or dragged the market down to this extent, reports Tom DiChristopher for CNBC.

Fels argues that the economy can still reaccelerate on eh back of decent job growth, low energy prices and strong residential construction sector.

“What we see is actually a small weakening … but we don’t see the type of fundamental changes that would indicate that we have the level of concern that the market seems to think that we do,” David Bailin, global head of managed investments at Citi Private Bank, told CNBC.

Consequently, Bailin believes investors should buy stocks that are cheaper, have strong dividends and have good earnings prospects.

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