VettaFi’s Tom Lydon appeared on Fox Business with Liz Claman to discuss the strength of the dollar and the unusual markets, which have been closing at their lowest levels since mid-July.
With the markets taking a series of blows throughout the week, Claman asked Lydon which ETFs had a shot at performing well amid the “weird atmosphere.” Given that baskets of securities, such as ETFs, can help investors catch sector waves, Lydon had some notes of optimism to play in what could otherwise be a gloomy melody.
Lydon said, “ETF flows can tell you a lot. We’ve seen over $400 billion in new money come in this year. We’re on track for the second-biggest year of flows. At a time when equity and fixed income have been challenged, it’s very telling.”
Lydon sees a lot of flows back into small caps. “When you look at small-caps there are some advantages because they are nimble and not affected by falling foreign currencies….
