The Global Macro Picture Is Fraught With Risk: A Playbook For ETF Investors (Podcast)


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By Jonathan Liss

While there’s not currently a real consensus around basic questions in the current market environment – Just how bad will the global economic slowdown become? Does it make sense to continue buying stocks or to take some risk off the table? How long will bond yields remain at historic lows? Where are commodity prices headed? – there is a general consensus that the current outlook is fraught with uncertainty.

It is against this backdrop that I am joined on the latest episode of Let’s Talk ETFs by Director of Macro ETF Strategy at Invesco, Jason Bloom. Jason’s job is to both help investors understand the current global macro picture and outlook, while providing investors with a range of strategic options (read: funds) for navigating any market. During our conversation, we take a deep look at all of the key asset classes: stocks, bonds and commodities. Jason also gives the kind of behind the scenes tour of Invesco’s diverse ETF lineup that only someone in his role can give.

Topics covered:

2:45 – What drew Jason to economics and finance generally and ETFs specifically?

8:00 – Description of Jason’s role as Director of Macro ETF Strategy at Invesco

13:30 – Overview of Invesco’s ETF lineup

17:25 – Reading the macro tea leaves: The global manufacturing recession, and recommendations for a slowing growth environment

27:10 – Low volatility suggestions (SPLV) (XMLV) (XSLV) (IDLV) (EELV): Core or satellite holdings in this market?

36:45 – The mixed outlook for energy: Geopolitical tensions causing upward pressure vs. global manufacturing slowdown applying downward pressure (PDBC)

49:15 – A look at the solar power boom: Why has the Invesco Solar Portfolio ETF (TAN) been on such a tear? (PBW)

59:00 – Are we in a permanent low rate environment?

1:03:30 – Discussion of the advantages of muni bond ETFs – in particular the new BulletShares line (BSMS)

1:07:50 – What about low-risk, investment grade bond ETFs?

Disclosure: I am/we are long SPLV, XMLV, XSLV, IDLV, QQQ, FIW. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Jason Bloom is long SPLV, XMLV, XSLV and IDLV.

Jonathan Liss is long QQQ and FIW.

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