The prospect of interest rate cuts adds some intrigue as a weaker dollar could prop up international equities. That said, Direxion has four funds traders may want to consider for short-term gains.
Per a Reuters report, M&G Investments fund manager Gautam Samarth is seeing opportunities in international equities as the capital markets await the U.S. Federal Reserve’s rate cuts. The pace at which they come, in particular, could spark some interesting trade ideas.
China, in particular, could be showing some promise. The country continues to iron out its issues stemming from a real estate development crisis a few years go. Still, Chinese equities could be offering decent value in the present market environment.
‘In equity markets, Samarth said China is attractively priced, and with negative sentiment attached to markets there, it is ’an opportunity,’" the Reuters report noted.
That said, traders may want to look at the Daily FTSE China Bull 3X Shares (YINN ). It seeks daily investment results, before fees and expenses, of 300% of the performance of the FTSE China 50 Index.
Strength in Latin America
Additionally, Latin America is offering value for traders for alternate options outside of China. With that, Direxion’s ETF product suite has a trio of options to consider.
“Mexico and Brazil offer value within Latin America,” the Reuters report added, noting that Samarth said that “both countries have ‘relatively idiosyncratic opportunity’ to invest due to the political landscape.”
3 Options in Latin America:
- Direxion Daily MSCI Mexico Bull 3X Shares (MEXX ). With its triple leverage ability, MEXX seeks daily investment results equal to 300% of the daily performance of the MSCI Mexico IMI 25/50 Index, which is designed to measure the performance of the large-, mid-, and small-capitalization segments of the Mexican equity market, covering approximately 99% of the free float-adjusted market capitalization in Mexico.
- Direxion Daily MSCI Brazil Bull 2X ETF (BRZU ): Per its baseline fund description, BRZU essentially gives traders 200% exposure to the MSCI Brazil 25/50 Index. The benchmark tracks performance of the large- and mid-capitalization segments of the Brazilian equity market. Together, these two segments cover approximately 85% of the free float-adjusted market.
- Direxion Daily Latin America Bull 3X ETF (LBJ ). LBJ is an ideal option for broad exposure to Latin America. It seeks daily investment results equal to 300% of the daily performance of the S&P Latin America 40 Index, which is a float-adjusted market capitalization-weighted equity index of issuers drawn from five major Latin American markets: Brazil, Chile, Columbia, Mexico, and Peru.
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