FYI: With economically sensitive sectors of the market selling off in October and November, and more defensive ones holding up best, momentum-oriented ETFs have given up their smart-beta industry-leading gains this year.
However, these are not static portfolios, so it can be helpful to see what has or could be shifting due to rebalances.
Heading into this holiday season, investors have been pressured by concerns about congressional gridlock, the expected ongoing tightening of monetary policy, the impending peak in earnings-per-share (EPS) growth and the impact of falling oil prices, according to Sam Stovall, chief investment strategist at CFRA.
However, slumps like the latest one historically have led to end-of-year rallies, and investors will likely look for a possible moderation of the Fed’s rate-tightening tone and evidence that analysts have become sanguine on 2019 EPS growth prospects.
Regards,
Ted
https://www.etf.com/etf-watch-tables/dont-give-momentum-etfs
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