What will be the 5 best ETFs for 2013?
ETF investors are closing the book on 2012 and starting to look ahead to determine what might be the best ETFs for 2013.
The typical year end forecasts abound regarding what ETF investors can expect for the New Year. Looking ahead, it seems that the skies look particularly cloudy and that continued slow growth, or even recession, is a growing possibility for the U.S. economy in 2013.
If this forecast is realized, 2013 could be a tough year for investors in traditional index ETFs.
Here are some specific details of the likely environment ETF investors will be facing in 2013:
1. Regardless of how the fiscal cliff negotiations turn out, taxes are going up and government spending is going down in 2013 which will be an increased drag on the already slow growth U.S. economy.
2 In Europe, recession is a reality as the economy contracted by 0.1 percent in the Eurozone last quarter and 0.6 percent on a year over year basis. Many economists expect Britain’s economy to contract during the fourth quarter, as well.
3. Across the world in Asia, Japan is also officially in recession with two consecutive quarters of negative GDP.
4. With America’s major trading partners in recession, the question arises as to whether slackened demand for our exports to those countries could cause our own economy to contract to the point of recession – even if the fiscal cliff doesn’t get us.
5. Recent reports regarding consumer confidence and sentiment also point to declining consumer confidence and so it does not appear realistic to expect the American consumer to pick up the slack resulting from reduced demand for our nation’s exports.
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ETF investors are closing the book on 2012 and starting to look ahead to determine what might be the best ETFs for 2013.
The typical year end forecasts abound regarding what ETF investors can expect for the New Year. Looking ahead, it seems that the skies look particularly cloudy and that continued slow growth, or even recession, is a growing possibility for the U.S. economy in 2013.
If this forecast is realized, 2013 could be a tough year for investors in traditional index ETFs.
Here are some specific details of the likely environment ETF investors will be facing in 2013:
1. Regardless of how the fiscal cliff negotiations turn out, taxes are going up and government spending is going down in 2013 which will be an increased drag on the already slow growth U.S. economy.
2 In Europe, recession is a reality as the economy contracted by 0.1 percent in the Eurozone last quarter and 0.6 percent on a year over year basis. Many economists expect Britain’s economy to contract during the fourth quarter, as well.
3. Across the world in Asia, Japan is also officially in recession with two consecutive quarters of negative GDP.
4. With America’s major trading partners in recession, the question arises as to whether slackened demand for our exports to those countries could cause our own economy to contract to the point of recession – even if the fiscal cliff doesn’t get us.
5. Recent reports regarding consumer confidence and sentiment also point to declining consumer confidence and so it does not appear realistic to expect the American consumer to pick up the slack resulting from reduced demand for our nation’s exports.
Read More