/A Rate Cut Looms…

A Rate Cut Looms…

Monday, July 15, 2019 Expectations for monetary easing around the world continued to drive stocks higher this week. The Dow Jones Industrial Average rallied to a record high, closing above 27,000 for the first time, following the Fed chairman’s testimony to Congress. Powell conveyed that the case for more a accommodating policy had strengthened, further solidifying expectations for a rate cut in the coming months.

The European Central Bank (ECB) is also considering injecting fresh stimulus to the economy through interest-rate cuts, or the relaunch of quantitative easing. As the second-quarter earnings season kicks off next week and attention shifts from central banks to earnings, we think volatility will likely pick up. With domestic large-cap stocks near all-time highs, its always a good time to review to review and potentially rebalance portfolios that have strayed far from the initial target asset allocation.
The ETFG Select list shows our top-rated ETF by each sector. Sprott Junior Gold Miners ETF (SGDJ) is our top rated Basic Material. SPDR S&P Retail ETF (XRT) is our top rated Consumer Discretionary. PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC) is our top rated Consumer Staples. Our top rated Energy ETF is iShares Edge MSCI Multifactor Energy ETF (ERGF).
The top 3 Quant Gainers of this week are IQ Chaikin US Large Cap ETF (CLRG), SPDR Russell 1000 Yield Focus ETF (ONEY), and First Trust Index Innovative Transaction & Process ETF (LEGR). The top 3 Quant Losers of the week are Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN), Global X MSCI China Communication Services ETF (CHIC), and Global X MSCI Greece ETF (GREK).
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Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.  ETF Global LLC (“ETFG”) and its affiliates and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively ETFG Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings and rankings and are not responsible for errors and omissions or for the results obtained from the use of such information and ETFG Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. ETFG PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall ETFG Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.
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This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.  Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.  Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested.  Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate.  Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor.

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Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.  ETF Global LLC (“ETFG”) and its affiliates and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively ETFG Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings and rankings and are not responsible for errors and omissions or for the results obtained from the use of such information and ETFG Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. ETFG PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall ETFG Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.

ETFG ratings and rankings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. ETFG ratings and rankings should not be relied on when making any investment or other business decision.  ETFG’s opinions and analyses do not address the suitability of any security.  ETFG does not act as a fiduciary or an investment advisor.  While ETFG has obtained information from sources they believe to be reliable, ETFG does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.

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