Market Monitor: Scott Kubie

The world is seeing an upswing in global economic growth. U.S., Europe, Japan, China, Latin America – and every other region – is in an economic expansion.

With the broader economic growth, this expansion should encourage a wider set of companies to participate in the recovery. It also means the risk of inflation in those economies farthest along in their recovery is higher.

Three ETFs we think take advantage of the upswing in global economic growth.

  1. PowerShares Intl Buyback Achievers (IPKW)
    1. Concerns over inflation in the U.S. aren’t a concern overseas – plenty of economic slack.
    2. International stocks aren’t as shareholder focused – buybacks are a plus.
    3. Emphasize those that have a greater focus and are in economies likely to do better.
    4. Currently at a 15% discount to the MSCI EAFE compared to a roughly equal level most of the time (Based on PE).
  1. IShares Edge MSCI Value Factor ETF (VLUE)
    1. As the economy picks up value stocks generally do better.
    2. Narrow set of winners in recent periods gives way to a wider set of winners.
    3. Sector neutral – separating the choice to own value stocks from industries normally associated with value.
  1. Fidelity MSCI Financials ETF (FNCL)
    1. Improving economy is pushing rates higher for loans.
    2. A strong economy and broader participation pushes the risk of default lower.
    3. Improved potential for loan growth.

The investments discussed are owned in advisory strategies managed by CWM, LLC dba Carson Group.  Scott Kubie has ownership of FNCL at the time of this published content.  The holdings of CWM, LLC and Scott Kubie are subject to change at any time. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. 

 

 

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