4 Best ETFs To Buy For Q4

We are now in the final quarter of the year. The journey so far has been anything but smooth. The first quarter of the year faced the double whammy of an oil price slide and Chinese market turmoil, the second quarter was all about Brexit-related worries and the third quarter was spent on speculating the timeline of the next Fed rate hike and discussing several central banks’ moves.

Still, markets ushered in gains occasionally whenever global central banks including the Fed stayed dovish, and the buy-the-dip sentiment took an upper hand. Any good news from the oil patch boosted investors’ sentiment and economic data points came in favorable.

All these mixed forces have helped SPY gain over 7.7%, DIA add over 7.5% and QQQ  move higher by about 4.7% so far this year (as of September 30, 2016). With the fourth quarter likely to see the events stated below, investors can expect the same mixed show.

Key Events to Take Place in Q4

Fed Hike: Talks of a rate hike in December have flooded the market after the Fed stayed put but maintained an upbeat outlook on the U.S. economy in its September meeting. In fact, in the September meeting, “three officials, the most since December 2014 dissented in favor of a quarter-point hike,” as perBloomberg.

Though Fed chief Yellen indicated no "fixed timetable" for a hike, market watchers expect one in December as the November meeting will happen just before the presidential election – a highly sensitive time for a rate hike. If the Fed does not hike rates in December, economic conditions will be considered too soft to afford even a single 25-basis point hike in 2016 after a liftoff in December 2015.

Presidential Election: The presidential election is slated on November 8 and the race between Democratic candidate Hillary Clinton and Republican candidate Donald Trump is likely to be very close. As per the source, Clinton had a 45.6% chance of winning as of September 29, 2016, while Trump had 44.6% chances.

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