Not So Bullish Globally: ETF Charts You Must Know #1
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As 2022 begins with the now quite normal headlines of US equities making new highs, here’s a look at what other ETFs are doing. Do they share the same degree of bullishness? (Spoiler alert: nope)
- US Equities start 2022 with the same bullishness they held through 2021
- Even with all the talk of the Fed taking equities into a bear market with its hawkishness, the SPY and QQQ are either close to, or making new highs
- Bear in mind that, historically, higher rates do not actually equate to bear markets in equities
- The IWM (US small caps) remains circumspect however, which hints at the rally in US stocks not being as broad based as headlines suggest
- European and EM equities also lack the overt bullishness of the SPY and QQQ, with Chinese stocks in particular under performing
- Fixed income ETFs are also broadly reacting to increased Fed hawkishness
- Corporate bond ETFs LQD and HYG are moving lower (yields moving higher)
- EMB (Emerging Markets sovereign bonds) as well
- TLT remains the exception and remains in an uptrend (lower yields)
- Although this might change soon if long dated US Treasuries continue their new year sell off
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