Sector ETFs To Buy In June
A month ago, the S&P 500 was breaking out of a multi-month consolidation pattern to reach new all-time highs.
But the volatility in fixed income, currencies, Greek debt, and uncertainty about the timing of the first interest rate hike in the US put a lid on the gains for stocks.
As you can see, the breakout was short lived. In fact, the large cap index is down 2% over the last month.
Greek And Global Events Impacting Sector ETFs To Buy In June
US stocks are being held hostage by the uncertain conclusion of Greek debt and the timing of the imminent US interest rate hike.
There are ways for active institutional investors to profit from the current gyrations in the global financial markets. But for most of us, this current period of choppy directionless trading is difficult to generate profits in.
I firmly believe there’s still more upside for US stocks. But in order for that to happen, monetary policy around the globe needs to normalize. And along with it… inflation rates, economic growth, and interest rates will normalize as well.
The latest economic data suggest that the US economy is picking up steam after a sluggish first quarter.
I believe the current fear and uncertainty are creating an opportunity for us to buy ETFs at a great price. As the macroeconomic headwinds subside and investors feel more confident, this ETF should find itself flying high.
Investor Sentiment Signals Sector ETFs To Buy In June
Another thing to keep an eye on for buy signals is investor sentiment.
More often than not, investor sentiment is a great contrarian indicator. In other words, be bullish when others are bearish and be cautious when everyone else is bullish.
Shockingly, only 20% of individual investors are bullish on stocks over the next six months according to the AAII Investor Sentiment Survey. That’s well below the long term average of 38.9% of investors that are usually bullish.
As a contrarian that believes most people are wrong most of the time, this is a bullish indicator.
We’ve seen it time and time again… the investors that aren’t bullish on stocks will pile into stocks once the markets begin moving higher. This influx of money will help propel the markets higher.
These Are The Sector ETFs To Buy In June
Identifying industries with positive macroeconomic themes is a critical part of the Sector ETF Trader strategy.
Sector ETF Trader identifies high-return potential ETFs based on a number of macro, fundamental, and technical indicators. These indicators offer you the opportunity to participate in some very large moves in a relatively short amount of time.
And because it focuses on ETFs, you get the advantages of both stocks and mutual funds, without the problems of high fees and over-concentration.
Rather than taking a ‘shotgun’ approach to the market, I use a time-tested system like a scalpel to carve out those ‘hidden gems’ with the greatest chance of spectacular profits.
You can develop an ETF trading system like mine or you can let me do the heaving lifting for you.
It’s not too late to pick up the most recent issue of the Sector ETF Trader. But you’ll need to take action now to avoid missing out. Click this link to find out more about this easy method to identifying the most profitable sector ETFs around!
Good Investing,
Corey Williams
ETF Trading Research
Note: Corey Williams writes and edits ETFTradingResearch.com. Sign up for our free ETF reports and free e-letter at http://www.etftradingresearch.com/free-sign-up. We’re devoted to helping you make more money from ETFs.
Category: ETFs
