5 ETFs to Combat Stimulus Tapering Concerns, Virus Woes
Zacks Investment Research | Sep 14, 2021 04:00AM ET
Investors have eyes on the minutes from the Federal Reserve’s two-day policy meeting that will begin on Sep 21. Fears surrounding the rising inflationary levels have picked up as the producer price index witnessed the largest annual surge since November 2010 (per a CNBC article). The metric rose 0.7% in August and 8.3% year over year.
It is being speculated that rising inflation levels may build more pressure on the Fed to tighten the monetary policies. In this regard, Charlie Ripley, senior investment strategist for Allianz (DE:ALVG) Investment Management, has said that ″[Friday’s] data on wholesale prices should be eye-opening for the Fed, as inflation pressures still don’t appear to be easing and will likely continue to be felt by the consumer in the coming months,” according to a CNBC article.
Several economic data releases are also weighing on investors’ minds. The U.S. economy added only 235,000 jobs in August 2021 (the lowest in seven months). The metric was far behind the forecast of 750,000 as a surge in COVID-19 infections probably kept companies from hiring and workers from actively looking for a job. Consumer confidence in the United States slipped to a six-month low in August.
There are still certain positive developments that can help stimulate a market rally. President Joe Biden has outlined a very effective plan to increase the vaccination rate and control the outbreak. He has made it mandatory for federal employees to get the COVID-19 vaccination, per a CNBC article. The Biden government will also issue guidelines to the Labor Department for imposing vaccine mandates for employers with more than 100 employees or run weekly tests.
New data from the CDC reflects that the seven-day average of new COVID-19 cases through Sep 10 came in at around 136,000, down from 157,000 average new cases at August-end, according to a CNBC article.
With the present market scenario, let’s take a look at some ETFs that investors can consider adding to their portfolios:
Vanguard Dividend Appreciation ETF Climb the "Wall of Worry" With These ETFs ).
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