Another volatile week did little to change the ETF Master Cutline list, as now 47 ETFs hover above the line, while 349 remain below it and in bear market territory.
The leaders are similar to last week in that Precious Metal ETFs still take top billing followed by bond ETFs of all different durations. No surprise there, as last Friday’s sell off pushed the 10-year bond rate below the 2% level for the first time.
Continuously lower interest rates are a sign that all is not well in economic wonderland, and we will most likely have to face some kind of fallout from the poor jobs report after the holiday weekend.
Take a look the latest report:
[If you are not familiar with some of the terminology used, please see the Glossary of Terms.]
As I have said repeatedly, this is not the time to be a hero and engage in bottom fishing below the cutline, as the trends clearly point down. Right now, you need to step back and let this situation play out until better opportunities present themselves. Remember these timeless words of wisdom: “Cash is a position too.”