ETF Strategies To Implement Now

The global economy is on an edge right now, waiting for decisions from the presidential election, the OPEC meeting on output freeze and the Federal Reserve on policy tightening. In fact, November can prove to be a real game changer for the rest of the year.

Uncertainty Resurfacing Prior to Election

This is especially true given the recent FBI probe into democratic candidate Hilary Clinton's use of a private server. The news lately diminished Clinton’s popularity to some extent as an ABC News/Washington Post tracking poll released on Sunday indicated that Clinton is ahead with just 46% to 45% advantage -- thinner than Saturday's 2-point superiority of Clinton.

Though chances are rife that America will still see Clinton winning on November 8, tensions about any sudden changes will not spare investors.

So, volatility ETFs like iPath S&P 500 VIX ST Futures ETN (VXX - ETF report) will be in focus in the near term. A few other ETFs that should be in focus include iShares MSCI Mexico Capped (EWW  - ETF report) – a Clinton-friendly investment – and SPDR Gold Shares (GLD - ETF report) – a Trump-friendly bet. In any case, as long as election-related uncertainties rule the market, gold the safe haven is likely to prevail.

Oil Output Curb Deal Uncertain

Coming to the oil patch, an output cut deal is highly anticipated at the end of the month. But recent developments still signal at precariousness. In a meeting in Vienna at October end, non-OPEC oil producers including Azerbaijan, Brazil, Kazakhstan, Mexico, Oman and Russia declined to commit to curb or even freeze output until OPEC decides on it. Whereas among OPEC members, Iraq and Iran appear to be the deterrents to cut some concrete deal.

If this was not enough, OPEC's oil output is likely to hit a record high in October, as per a Reuters’ survey. A rebound in Nigerian and Libyan production rising from disruptions and higher exports by Iraq were behind this rise. The trend could spoil the moods of oil bulls who are betting big on oil price recovery.

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