U.S. markets got off to a relatively good start this month, with equities rallying into positive territory during the final minutes of Monday’s trading session. A slew of underwhelming economic reports, however, quickly put the brakes on bullish momentum. The Institute for Supply Managements index of manufacturing activity unexpectedly contracted in May, marking its first decline in six months, while Wednesday’s ADP private sector jobs report grossly missed analysts’ expectations. Investors will be continuing to weigh these disappointing U.S. reports against the likelihood of the Fed scaling back its massive bond-buying program in the near future [see Single Country ETFs: Everything Investors Need To Know].
Below, we highlight seven insightful articles circulating around the financial space this week:
- The slide in U.S. Treasury Bond prices may be signaling a future move by the Fed (Global Money Trends)
- Common trading mistakes you may be making, and tips on how to avoid them (NAS Trading)
- Fed’s “stimulus” policies are actually exacerbating the credit crunch, particularly for smaller firms (Steve Hanke)
- Considering the Chinese Government’s grip on the Renminbi, consumer equities may be the best bet (Sizemore Insights)
- U.S. stock correlations to Japanese, emerging markets and Europe equities are on the decline (Omnivest)
- Will the Fed’s pullback be a repeat of the 1994 scenario? (Short Takes)
- The dark side of one of the most popular strategies: low-volatility investing (Servo)
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Disclosure: No positions at time of writing.