Wall Street will be on holiday for Good Friday, but investors will be on the lookout for a bunch of good and timely bets as soon as the market reopens. This is even truer given the buoyancy in the market since the beginning of the year has rested a bit lately.
Geopolitical tensions are back on the table on U.S. moves against Syria and North Korea. The greenback lost ground as President Trump sees considerable strength in the currency’s current valuation. Volatility S&P 500, or VIX, which measures equity market volatility, gained about 39% in the last one month (as of April 12, 2017).
The S&P 500, the Dow Jones Industrial Average and the Nasdaq have lost their post-election (Donald Trump’s win) enthusiasm. Along with geopolitics, overvaluation concerns and doubts over the materialization of Trump’s promised pro-business policies are being seen as the key culprits. Oil prices have maintained their seesaw ride. Thanks to all the doldrums, the investing backdrop remains edgy at this moment.
Volatility could still flex its muscles further if Q1 earnings come in less than expected. In such an erratic market scenario, it would be wise to highlight a few good quality ETFs and stocks that can safeguard investors’ portfolios (read: 4 Hedge Fund ETFs to Counter Geopolitics & Fed Fears).
ETF Picks
VanEck Vectors Morningstar International Moat ETF (MOTI – Free Report)
If you are hunting for companies that are likely to last long, the ‘wide moat’ technique may please you. These stocks have distinguished competitive advantages than those of their peers. These advantages include brand name and economies of scale to name a few.
On the wide-moat front, we zeroed in on an international ETF as overseas investing has been extremely upbeat lately on the improving health of several economies. Policy easing has played a major role in driving global economic growth over the last couple of quarters. Be it Eurozone or emerging markets – all these regions grabbed investors’ attention in recent months (read: Why Did International ETFs Outperform in March?).
