Feeling down about the markets? September selloff doldrums have seeped into the discourse for some, but there are reasons for positivity. Even as the American consumer feels the economic pinch, they’re still spending. That and other news about earnings estimates may encourage investors. Positive economic news would boost the case for an ETF like, for example, the ALPS O’Shares Global Internet Giants ETF (OGIG), an ETF to watch in the weeks ahead.
Yes, the S&P 500 may be down over the last month, but only just. Americans are facing a slowing jobs market and falling incomes, with student loan payments resuming, true. However, for the purposes of investing via ETFs, consumer spending news can have a bigger impact. Whether U.S. consumers will continue to spend at the pace they have for much of 2023 will have a significant bearing on many of the big firms in investors’ portfolios.
Reading Into the Latest Economic News
That’s why it matters how investors look at the economy and consumers particularly. While some might be concerned about a low personal savings rate — 3.5% in July — analysis shared over at VettaFi’s Advisor Perspectives offers a different take. Household net worth remains near a record high adjusted for income. That helps consumers’ spending capacity stay resilient – and have changed homeowners’ comfort with spending more and saving less.
That kind of economic news should bolster a bull case for the overall economy and certain stocks. With earnings estimates seeing upwards revisions, too, this year’s market rally may have a case for continued performance. Upwards earnings revisions don’t just benefit the firms and their investors, either; such news offers a broader indication that economic conditions are still pretty good.
For those looking to play such economic news, OGIG could be a good strategy to watch. The strategy is sending a buy signal per its tech chart, with its price rising above its 50-day Simple Moving Average (SMA). OGIG charges 48 basis points (bps) to track the O’Shares Global Internet Giants Index which includes U.S. and foreign e-commerce consumer spending platforms. Returning 4.1% over one month and 36.6% YTD, investors encouraged by recent economic news may want to track OGIG.
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