October 2019 started as a somewhat uncertain month for stocks with the US/China trade tensions intensifying and Brexit talks heading almost nowhere.
But things changed signficantly with global equities notching back-to-back weekly gains soon after a Phase 1 US/China deal was announced. As of
November 2nd, the S&P 500 and NASDAQ have registered record highs and this is a signifcant development considering the economic backdrop in the US.
Economic datapoints point to a weakening US economy, especially in the areas of manufacturing and exports. The Fed moved in late October to
reduce the Fed Funds Rate by another 25 basis points. This rate cut has come even as October jobs data was better than consensus. The Fed's
move has caused the US$ to dip slightly. A weakening dollar at this stage should help US exports.
This past month has also been very favorable for many international markets. Europe, India and Asia markets appear to be attracting investor
attention. Institutional Investor Sentiment has improved in favor of Europe. India has benefited from a dramatic corporate tax rate reduction.
The temporary thawing of US/China tensions is benefiting various South East Asian economies as well.
Investors may want to monitor these ETFS considering current trends:
- iShares MSCI Japan ETF (EWJ)
- iShares S&P India Nifty 50 ETF (INDY)
- iShares Asia 50 ETF (AIA)
- VanEck Vectors Russia ETF (RSX)
- iShares MSCI Ireland ETF (EIRL)
Good Luck and Happy Investing!