Access Frontier Markets With New Exchange Traded Fund

The Final Numbers - Oversold Rally News: A late-day rally sent the indices to the highs of the day and allowed the market to end week on a positive tone. The Dow finished with a gain of 165 points or 1.4%. The S&P 500 added 20 points or 1.5% and the NASDAQ was the big winner, rallying 50 points or 2.1%.

The Bottomline: Today’s rally was fueled by a combination of several bullish factors that range from an inflation number that was in-line with estimates, a drop in oil prices, and a severely oversold condition. The three combined resulted in big gains for the indices, but the entire day was not so bullish. The early afternoon was beginning to look a lot like yesterday, when triple digit gains turned into red numbers at one point. The tone on the street was that another late-day sell-off was coming and that it would not be good for sentiment heading into a weekend.

The third and final factor, the oversold condition, was likely the catalyst for the late-day rally as investors identified the opportunity in beaten down stocks. This led to the willingness of investors to put new money into the market before the weekend. I expect more follow-through in the coming days that could help investors to continue the selling of any positions that may have broken down.

The Daily ETF Update - The New Frontier

News: Yesterday Claymore introduced the first “Frontier” ETF to US investors. The Claymore BNY/Mellon Frontier Markets ETF (symbol:FRN) began trading on the NYSE Thursday.

The Bottomline: The frontier markets can be described as the Emerging Markets. Imagine if you had access to Brazil and China 10 years ago though an ETF? You would have been on very happy and wealthy investor. What FRN will do is give your portfolio exposure to countries in Africa, Asia, Eastern Europe, and Latin America that are nearly impossible for US investors to gain access to. The country with the biggest exposure was very surprising to me - Poland!

When most investors think frontier markets, the first region that comes to mind is Africa. Of the frontier markets, my favorite is Africa based on their natural resources and the monetary backing of China.

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