This past week has led to nothing but instability in markets, forcing many analysts to call for a sideways market in the near term, as stocks have posted major losses only to recover the next day for most trading sessions in recent memory. The week ended on a low note as a major board member of the ECB relinquished his position thanks to his opposition to the bond-buying program that is currently in place, sending shockwaves through the euro zone. In other news, President Barack Obama made a major address to the nation over the current unemployment situation. The president outlined a $447 billion job bill that will aim to put more people to work and shift current tax structures in order to spur more hiring.
The ETF world saw a nice pickup from its past few months of low growth with 16 new products hitting markets this week [see UBS Launches 12 New Volatility ETNs]. Below, we outline three of the best recent ETF stories from all around the web:
Ag ETFs Weathering Storm at IndexUniverse:
As pointed out by the author of this article, Dennis Hudachek, the recent market turmoil that has plagued equities is just another reminder of why diversity is key to any portfolio. With the euro-zone currently under major pressure and U.S. debts receiving their first-ever downgrade from S&P, the past few weeks have seen a number of asset classes bottom out. On the commodity side of things, however, agricultural products have been holding up quite nicely. This article outlines two agricultural commodity ETFs, DBA and RJA, and why their performances have held up in volatile markets.
The Swiss Role in $2000 Gold at Investment U:
This week saw a major event from the Swiss National Bank as they pegged the franc to the euro, a move that came after the franc has exhibited major strength in recent months, leading it to appreciate out of control. The currency had gotten to the point where it was hurting the overall Swiss economy because exports were dragging, pushing the SNB to act. Now that the only safe haven currency that was left is pegged to the flailing euro, it seems that gold is the only real safe spot left for investors. This article, by Jason Jenkins, outlines how the SNB’s currency peg will create tailwinds for gold as it approaches the $2,000 mark.
Recent ISM Manufacturing Reports have been anything but encouraging, in fact, they are nearing contraction levels. This has led to a number of investors abandoning the sector altogether, moving their assets elsewhere. But there is one corner of the industrial sector that investors may still want to consider for their portfolios; waste management. This article, by Eric Dutram, outlines two waste management products and how these two trash funds may just be the bright spot your portfolio is looking for in these difficult times.
Disclosure: No positions at time of writing.