What ETFs to Buy in a Trendless Market (XLK, XLY, JNK)
For the moment, stocks have found some footing and look set to snap a 3-day slump, thanks to better than expected unemployment claims, manufacturing data, and earnings from FedEx (FDX). Even so, that has not changed the fact that the S&P 500 is still down for the week, the month, and the year; and advisors like Mark Lamkin on the sidelines.
“We’re about 50% invested,” says the founder & CEO of Lamkin Wealth Management. “I don’t think there’s a big trend to play here.” He describes the current climate as “death from 1,000 paper cuts” and concedes that fear is the overriding emotion of his clients and it’s even causing him to stay on the sidelines.
Lamkin predicts a “monster Santa Claus rally” would happen if the European Central Bank were to adopt U.S. Fed-like policies to inject cash into the market. Until that happens his outlook is ”modest at best” in a climate he calls “all headlines and trendless.”
See the full “Breakout” interview below:
Related ETFs: Consumer Discret Select Sector SPDR (NYSEArca:XLY), Technology Select Sector SPDR (NYSEArca:XLK), SPDR Barclays Capital High Yield Bond (NYSEArca:JNK)