Stock ETFs That Haven't Slumped Despite the Cliff
Since the presidential election more than six weeks ago, the S&P 500 SPDR Trust (SPY) has effectively ended in the same place it began. Bears believe this is a sign that upcoming austerity will hamper market progress and that a failed budget negotiation may send stocks plummeting. Bulls believe that stocks are ready to explode to the upside, as long as the White House and Congress cement a deal.
Intriguingly, there are several stock ETFs that are marching to a different drumbeat than the one heard in the District of Columbia. Here's a quick summation:
1. iShares DJ Transportation (IYT) .The Dow Jones Transportation Average has been a thorn in the U.S. stock bull all year long. Unlike the Dow Jones Industrials Average that set new bull market highs in May, September and October, the Transports stubbornly drifted lower throughout the summertime and into the fall.
Then something happened in mid-November. Not only did the exchange-traded proxy (IYT) rocket more than 10% in as little as five weeks, but the price hit a new 52-week high on 12/20; on Friday, 12/21, IYT only fell -0.3%.
Granted, a "Dow Theorist" might still be skeptical of the recent turn of events. After all, IYT has not yet revisited its bull market pinnacle set in July 2011. Nevertheless, the demand for the transportation of goods and services should increase markedly with greater economic stabilization in China.
2. Guggenheim Global Water (CGW) .