Why You Should Buy High Beta, Momentum ETFs & Stocks Now
Zacks Investment Research | Dec 02, 2018 10:59PM ET
After a blockbuster week, the Wall Street rally is expected to continue into the new week, given the series of positive news. This is especially true following the trade truce between the United States and China at the Group of 20 meeting in Argentina over the weekend that has averted an escalation in trade war. The Fed’s dovish view, an accelerating economy and the prospect of addressing the glut in oil supplies will support stocks toward the end of the year.
Notably, the S&P 500 and Nasdaq Composite Index logged in its best week since 2011 while the Dow Jones posted its best week since November 2016. This marks a sharp reversal from a week ago when the S&P 500 stumbled into correction territory by declining 10% from its latest peak.
Last week, Fed Chair Powell said that interest rates were "just below" the level that would be neutral for the economy — meaning they will neither speed up nor slow down economic growth. This is in contrast to October remarks — the rate was “a long way” from neutral — which led to worries that the rate increases will crimp growth. Additionally, the subsequent minutes from the central bank's latest meeting suggests that the Fed will likely raise rates this month but might pause hikes next year (read: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.