This past week saw markets take a wild ride, as investors had a wealth of data and news to digest from around the world. The biggest news came from Fed Chairman Ben Bernanke’s speech on Wednesday, in which he outlined the up and coming “Operation Twist” to make yet another attempt at jump-starting our economy. Apparently, investors were less than impressed as the following day saw a massive sell-off that sent major indexes tumbling. Another surprise came from gold, which fell all the way below $1,700/oz as the week drew to a close, creating an interesting buying opportunity for the wealth of gold bugs in today’s environment [see also Three Reasons Why Gold Is Overvalued].
The ETF world saw a healthy amount of activity with over 10 funds hitting the market, marking a nice uptick in what was something of a summer slowdown for the industry. Below, we outline three of the best ETF stories from around the web this past week:
Shorting Europe With ETFs at IndexUniverse:
The past two years have been hard on the euro zone, as a number of debt crises have left the bloc of countries struggling to find their footing. This year has seen the euro flail in the wind as the greenback has gained significant ground on the opposing currency. With all of the turmoil overseas a number of investors are looking for a good way to profit from Europe’s woes. This article, by Devin Riley, outlines a number of ways to short Europe with ETFs to help investors establish a unique position in a sputtering economy.
How to Get Rich in China Without Chinese Stocks at Investment U:
When it comes to emerging markets, China has long been the top economy, as their impressive growth story has made some investors handsome returns. But in a country that has the potential to experience 10% economic growth in just a year, markets do not always correlate to this high level of growth, a lesson many have learned the hard way. Luckily there are other options to make a play on China without braving their equity markets. This article, by Carl Delfeld, outlines two ETFs focused on Taiwan and Singapore, and why they make for solid Chinese exposure.
Three ETFs For ‘Operation Twist’ at ETF Database:
This week saw Ben Bernanke outline “Operation Twist” in an attempt to get our economy back on the right track. This move from the Fed will consist of shifting $400 billion of their holdings in short-term debts, and purchasing longer term fixed income in an effort to curtail long-term interest rates and flatten the yield curve. Whether or not this move will be successful is still unknown, but it can certainly have a major impact on your investments. This article, by Eric Dutram, outlines three ETFs for investors looking to make a play on this massive move from the Fed.
Disclosure: No positions at time of writing.