First, even if you don’t trade currencies (and most people don’t), they can have a big influence on the stock market. Moves in the foreign-exchange markets impact companies operating outside the U.S. They can also move commodity prices and related stocks.
Exchange-traded funds or ETFs are a type of fund that owns the underlying assets (stocks, commodities, bonds, etc.) and divides ownership of those assets into… Read More »What Are ETFs And How Can They Help My Portfolio?
An ETF is an open-ended investment fund that is traded on the ASX – just like any share. ETFs aim to closely track the performance of a given index or asset class, so ETF investors can gain exposure to a range of investment strategies, geographic regions and asset classes, often at lower costs than a traditional fund manager. ETFs and can be bought as simply as buying a share on the ASX during the trading day. ETFs are also eligible to be bought inside Self-Managed Super Funds.
So-called “Dow Theory” teaches that different parts of the market can confirm each other. This is especially true with economically sensitive transportation companies because they often track the business cycle.