Investing Trends in 2020: Where to Invest

This is an excerpt from our latest video, Investing Trends in 2020 and Where to Invest with Lynn Dolan at ETFguide and Dave Mazza at Direxion Investments.

Lynn: As we head into a new decade, the market is already taking shape and new investment themes and trends are starting to take shape. Here to discuss that is Dave Mazza, Head of Product at Direxion Investments. The firm manages 93 ETFs with $15 billion in assets. Dave…welcome to the show, great to have you!

Dave: Great to be here, thank you!

Lynn: Let’s start by discussing stocks from international and emerging markets. Both have underperformed US stocks on a relative basis over the past few years. But that dynamic could be changing because emerging markets, as of late are starting to make some noise. Direxion offers a few ways to play the resurgence in emerging markets. There’s 3X bullish trades like ticker symbol EDC, there’s relative weight trades like ticker RWED, and there’s single country 3X bull trades on Brazil, Russia, and China. What

Dave: You raise a really great point. Over the past few years the US has really been the place to be so for investors who have had a home country bias which many of you they’ve really been rewarded as such as the US economy and especially US earnings growth have been superior to nearly any market around the globe but what’s interesting is if we peel back the onion a bit on some of the trends in the market, we actually begin to see emerging markets finally having the potential and the catalyst of for some outperformance.

A big part of that is a decrease in uncertainty that was weighing on emerging markets from the trade war between the China and the US which at least from a paid one perspective as moving to some resolution. But even outside that economic growth has been a bit lackluster outside of the US and in emerging markets especially in China and we are beginning to see some signs if we look at economic surprises. If we look at just the robustness of data that isn’t coming from emerging nations it’s a bit better and that’s hopeful because of course the valuation side has been there so that direction we offer a multitude of different solutions for investors looking to access emerging markets whether it’s not tactical traders taking advantage of our leverage products or invest with a more  intermediate horizon looking at relative weight trades.

Changing gears, let’s talk about commodities. Any weakness in the US dollar would be a much welcome boost for commodities. We’ve already seen a nice rebound in certain segments of the commodities market like precious metals. The Direxion Auspice Broad Commodity Strategy ETF (COM) offers a convenient way to get commodities exposure without having to buy a farm. Tell us more.Watch the entire interview on 2020 and Where to Invest at ETFguide’s YouTube channel.

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