The Market Matters Global Macro ETF Portfolio Tracks our top 10 global macro calls, and provide avenues to trade them via ASX and internationally listed Exchange Traded Funds (ETF’s) – Click here to view
The MM Global Macro ETF Portfolio fell -3.12% last week as recession fears washed through global markets, our ETFS Battery Tech & Lithium ETF (ACDC) -5.5% and Sprotts Physical Uranium Trust (U-U CN) -4.1% where the main drags on the portfolio.
Economic concerns have weighed heavily on financial markets over the last week dragging a number of our positions lower in the process, this morning we find ourselves considering which position (s) offer the least upside in the months ahead as opportunities arise elsewhere:
- The $US keeps rallying as a defence hedge against a recession while this weighs on a few of our holdings, the long Euro is probably worst on ground unless we see a satisfactory resolution to the Russia – Ukraine conflict.
- Conversely while both copper and oil are being dragged lower by recession fears they still have supply issues that aren’t going away anytime soon once economic expansion resurfaces.
Hence MM would rather hold the Global X Copper Miners (COPX US) discussed last week as opposed to the long Euro (ULE) position, both are negatively correlated to a recession but we believe copper is a far better long-term play, especially after the COPX has recently corrected more than 40%, watch for a switch.
- MM is looking to switch our Euro ETF (ULE US) into copper play (COPX US) following its 40% fall.
