After huge selloffs over the past few days, the S&P 500, the Dow Jones and the Nasdaq rallied last week on the $2-trillion U.S. stimulus support and the Fed’s announcement of corporate bond buying. The three key U.S. equity gauges gained 10.3%, 12.8% and 9.1%, respectively, in the week. Several global markets followed suit.
Below we highlight a few investing areas that outperformed last week.
Pot stocks bounced back. It’s been a volatile journey for marijuana stocks in the past year. Earnings weakness, regulatory issues, “
longer-than-anticipated product rollouts and overly enthusiastic forward estimates” hit the space hard (read: Are Marijuana Stocks & ETFs Coronavirus-Proof?).
analysts are now of the view that the United States may be compelled to approve the recreational marijuana selling to cover up for part of the massive economic losses caused by the coronavirus pandemic. Marijuana sales have also been strong amid the virus outbreak as cannabis dispensaries have been listed as “ essential services” along with other health facilities. The Cannabis ETF ( THCX Quick Quote THCX - Free Report) , Global X Cannabis ETF ( POTX Quick Quote POTX - Free Report) and ETFMG Alternative Harvest ETF ( MJ Quick Quote MJ - Free Report) added about 32.5%, 27.7% and 25.9%, respectively, last week (read: Are Marijuana Stocks & ETFs Coronavirus-Proof?). Colombia
The U.S. dollar ETF
Invesco DB US Dollar Index Bullish Fund ( UUP Quick Quote UUP - Free Report) lost about 4.5% in the week, which helped several battered emerging currencies to gain moderately. Colombia's peso gained materially last week. Along with other Latin American counties, Colombian stocks too followed the strength in Wall Street. Global X MSCI Colombia ETF ( GXG Quick Quote GXG - Free Report) and iShares MSCI Colombia ETF ( ICOL Quick Quote ICOL - Free Report) each gained more than 30% in the week. Palladium
Risk-on trade sentiments helped palladium prices week. Notably, South Africa noted that it will continue to process platinum group metals (PGMs) during its 21-day coronavirus lockdown,
per Reuters. Aberdeen Standard Physical Palladium Shares ETF ( PALL Quick Quote PALL - Free Report) added 34.2% last week. Airlines
Airlines companies were among the most-battered zones or virus-hit areas.
U.S. Global Jets ETF ( recorded a monthly loss of about 43% compared with about 21% retreat in the S&P 500. JETS Quick Quote JETS - Free Report)
The news of U.S. airlines being eligible for a combined $62-billion in federal loans and direct cash assistance to meet their payrolls boosted the space last week. JETS were up more than 27% over the time frame (read:
Airlines Stocks & ETF Fly Higher on Stimulus Package). Gold Miners
Gold saw the
biggest weekly gain since late 2008 on Mar 27, adding more than 8.2%. Higher gold prices and the stimulus news bode well for gold mining stocks. Sprott Junior Gold Miners ETF ( SGDJ Quick Quote SGDJ - Free Report) gained 22.8% last week. Aerospace & Defense
The space rallied on Boeingnews. Notably, Boeing takes about 14% of the fund
iShares U.S. Aerospace & Defense ETF (ITA). Per a Reuters report, Boeing plans to resume 737 MAX production by May, ending the prolonged halt following the deadly MAX jet crashes. The very news lifted investors’ sentiments.
The U.S. government stimulus deal “includes $17 billion in loans earmarked for
companies deemed critical to national security, which is intended to assist Boeing,” though no name was mentioned, per Bloomberg. ITA added about 23.9% last week (read: US Stimulus Should Support These 7 ETFs). Want key ETF info delivered straight to your inbox?
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