1. Emerging market bonds
The widely anticipated dollar weakness gives investors an opportunity to put money to work abroad, said Tocqueville Asset Management portfolio manager John Petrides.
He suggested playing the dollar-yuan divide via the VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC), a basket of emerging market bonds denominated in local currencies. You re getting near a 5% yield and you re investing in emerging market bonds because the world is less fearful about credit risks today than we were a year ago, he said. About 10% of this ETF is geared towards China, so, you do participate in this trade . and you pick up some yield in what s been a stubbornly low-yield market.
Invesco QQQ Trust (QQQ) are all green just before 12:30 PM EST.
The move higher Thursday prompted optimism from some analysts, who feel that this week’s action signals just a pullback in a continuing uptrend.
“This bull market ultimately has further to run,” said Keith Lerner, chief market strategist at Truist. “Investors who are underweight equities should look to average into the market weakness and become more aggressive.”
While most sectors suffered damage this week, some investors were more enthusiastic about the economy, championing reopening trades like airlines and cruise line operators. The optimism helped fuel American Airlines, United, and Delta over 2% higher, and boosted the