Author: Gary Harloff – Harloff Capital Management
Disclaimer: Gary Harloff owns RSX in his Covestor Opportunistic ETF model.
August 1, 2010: Many pundits are forecasting a double dip recession and a double dip bear market.
Current musings by star gazers include bearish signs of a head and shoulders pattern and a death cross of 200/50 day crossover. We don’t think so.
Our latest general market buy signal of May 28 is holding. Our view is that the markets and the economy are recovering; the painful market correction is over. It will take 2 to 3 years to reach full employment with a slow growth of about 3% per year during this period. New market highs await.
Nearly all countries, sectors, and indexes are recovering at this time. Emerging markets lead England, U.S., and Germany in our opinion. Utilities, oil, and semiconductors are leading sectors in our opinion. Finance and precious metals are lagging and large and small caps are participating in the uptrend in our opinion.
We like the following ETFs: Russian Oil (RSX), Latin America (EWZ) and (ILF), BRIC (BIK), and Hong Kong (EWH).
We like the following funds: Rydex Large Cap Europe (RYEUX), ProFunds Ultra Utility (UTPIX), Direxion Emerging Market (DXELX), Profunds Telecom (TCPIX), and ProFunds Ultra Industrial (IDPIX).
Because the markets can turn quickly, be ready. May the market be with you!
