Monday, February 10, 2020

Despite Global Panic, U.S. Markets Stay Strong

Monday, February 10, 2020 - The deadly Coronavirus that has caused widespread panic throughout the world, as containing it is proving difficult, was not able to damage the U.S. markets this week. Another strong week came our way, as the Nasdaq Composite, Dow Jones Industrials and S&P 500 were up 4.04%, 3%, and 3.17% respectively. Perhaps in this week of global turmoil, especially in China, investors may be looking towards U.S. companies as a safe haven. In addition, was another strong showing for the economy in the form of the Job Report for January. The report showed us that employers added around 225,000 jobs the previous month. Overall, the three indices were at record highs on Thursday and it seems, for the short term, that the epidemic is not going to stop the U.S. markets’ momentum.

ETFG Quant Movers - Those ETFs who have had the largest weekly change in their respective, overall ETFG Quant ratings.

ETFG Quant Winners: On to the ETFG Quant Movers table, we can see this week’s five biggest % Gainers were PNQI, LDRS, JKD, JPLS and SKYY. Worth noting is that the top three ETFs on this list either actively invest or track an index that reflects the overall US economy. Whether that be Large Cap companies (JKD) or an index that tracks the top ranking ETFs (LDRS), what our ETFG Quant Model is showing is that the US economy showed well this week against the rest of the world and these ETFs that are heavily invested in it reaped the benefits.

ETFG Quant Losers: On the % Losers side this week, FNDE, PWV, EDIV, QDEF, FGD led the way. Two of the top 3 losers, FNDE and EDIV, are both emerging markets ETFs, which is interesting as China is considered an emerging market. Perhaps our model is showing us that the biggest losers this week can be linked to ETFs that have large interest in China, which is dealing with the Coronavirus epidemic.

ETFG Weekly Select List - Finally, we’ll take a look at the ETFG Weekly Select List and compare the last two weeks’ worth of data. Looking at the Sector portion of our select list, we can see our biggest winner this week was XME, from the Basic Materials focus, as it moved all the way from last place 5th to 1st place this week. Other notable winners include FIDU from the Industrials focus, moving to 1st place this week from 3rd place the previous week, and FNCL from the Financials focus, which had an impressive move from 4th place to 2nd place.

Thanks for reading ETF Global Perspectives!

ETFG 21 Day Free Trial:

Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.  ETF Global LLC (“ETFG”) and its affiliates and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively ETFG Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings and rankings and are not responsible for errors and omissions or for the results obtained from the use of such information and ETFG Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. ETFG PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall ETFG Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.

ETFG ratings and rankings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. ETFG ratings and rankings should not be relied on when making any investment or other business decision.  ETFG’s opinions and analyses do not address the suitability of any security.  ETFG does not act as a fiduciary or an investment advisor.  While ETFG has obtained information from sources they believe to be reliable, ETFG does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.  Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.  Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested.  Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate.  Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.