Quality ETFs & Stocks To Outperform Amid Volatility
Zacks Investment Research | Dec 05, 2018 10:10PM ET
The U.S. stock market has been exhibiting heightened volatility ahead of Christmas. Notably, the S&P 500 witnessed its best start to December in eight years followed by the best week since 2011 while posting its worst one-day performance in nearly a month by falling more than 3% on Dec 4.
The sell-off was triggered by the flattening yield curve (a phenomenon in which longer-dated debt yields fall faster than their shorter-dated counterparts) that has sparked fears of recession. Notably, the spread between the 10-year yield over its two-year counterpart shrank to the smallest since the start of the financial crisis in January 2008, signaling a slowdown in the world's largest economy.
Although the trade truce between the United States and China at the Group of 20 meeting in Argentina renewed the appetite for riskier assets at the first day of trading in December, conflicting comments from President Trump and some senior officials led to uncertainty over trade talks. However, the Fed’s dovish view, an accelerating economy and hopes for fresh cuts in oil supply when OPEC meets in Vienna on Dec 6, bode well for the stock market (read: Zacks Investment Research
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