US stock indices may be trading just below record highs, but they’ve taken a hit over the past year as a direct result of the trade war between the US and China.
Under the surface, each segment of the equity market — particularly trade-sensitive industries like agriculture and aerospace — has reacted to trade-war developments in different ways.
Deutsche Bank equity strategists have pinpointed exchange-traded funds most vulnerable to trade rhetoric, based on their analysis of flows data, in a new guide for investors.
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On the surface, the stock market seems to have shrugged off headwinds introduced by the US-China trade war. The major US indices are within striking distance of their all-time highs, and just posted their best weeks of 2019.
But a new industry-level analysis shows investors have fled corners of the market tossed and turned by the trade dispute even as the broader markets have recovered.
Exchange-traded funds associated with trade tensions saw increased activity in May, a particularly brutal month for equities, according to a Deutsche Bank analysis of exchange-traded fund (ETF) flows over the last two years.
The firm created a guide detailing some of the large ETFs that have …read more
Source:: Businessinsider – Finance