3 Oversold ETFs to Consider Buying Now
Each of these exchange traded funds is extremely oversold and out of favor, so now might be the time to enter.
For just a few quick ideas that would make sense in this area, we point out three ETFs that you could look at entering now as they are way out of favor and very oversold.
Gold Stocks: Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ)
The junior miners index is high risk, high reward. However, if you time the entry right at the opportune moment, the upside is very high with low downside risk. With gold out of favor, we have been pounding the table the last 10 days or so that there are only four to five weeks left to buy quality miner names. Instead of picking through them one at a time, you can pick up the high-beta play GDXJ ETF.
How About Brazil?
No one likes Brazil stocks now, but the country has some of the most valuable natural resources in the world, and it almost always bounces back strong off bear-cycle lows. Here is a way to play the commodity rebound we see in 2014: iShares MSCI Brazil Index ETF (NYSEARCA:EWZ).
It’s Not Too Late to Get Some Turkey
Turkey is often avery volatile play for investors, but going in during very oversold conditions often plays out to the upside for gains later on. The iShares MSCI Turkey Inv. Market Index Fund (NYSEARCA:TUR) is beat-up; it’s time to buy.
Editor's Note: David Banister is the chief investment strategist and co-founder of ActiveTradingPartners.com, a small-cap portfolio and market advisory service.
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