AberdeenAsia-Pacific Income Fund (AMEX: FAX ) - The Australian dollar is usually bought when traders are optimistic about global stocks and commodities. This fund holds both Asian and Australian debt securities, but currently invests over 80% in Asian debt securities. The dividend yield is 5.5%.
Note the strong buy from the stochastic indicator in mid-June, which preceded the run from $7.20 to over $7.80. The smallU.S.holdings make this ETF an excellent hedge against a further decline in the U.S. dollar. The recent pullback offers investors an attractive opportunity in an uncertain investment world. The target for FAX is $9 before the end of this year.
See Sam Collins' Daily Market Outlook: Go Against the Crowd of Sellers See Serge Berger's Daily Market Outlook: Why You May Want to Wait to Go Long See See Serge Berger's Trade of the Day: Regal Entertainment Stock Could Be a Hit
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.