|Bid||30.51 x 1400|
|Ask||30.52 x 3000|
|Day's Range||30.50 - 30.55|
|52 Week Range||28.53 - 30.73|
|PE Ratio (TTM)||24.25|
|Beta (3Y Monthly)||1.41|
|Expense Ratio (net)||0.28%|
Though markets rallied probably on the undervalued status and a still-steady US economy, rising recessionary fears and full-scale trade war risks should brighten the appeal of safer ETFs.
Concerns about China’s economy have been a major risk for global markets. Last week, Apple (AAPL) lowered its revenue forecast due to the slowdown in China. The economy grew at an annualized pace of 6.5% in the third quarter, which is the slowest expansion rate since 2009. On January 11, Reuters reported that “China plans to set a lower economic growth target of 6-6.5 percent in 2019.” Lower economic growth isn’t really a surprise.
The American Recovery and Reinvestment Act of 2009 spurred the creation of build America bonds and some related exchange traded funds. The legislation established a Direct Payment Bond, which BAB will invest in. The federal government will give the bond issuer a direct payment of 35% of the interest rate on the bond, allowing municipalities to compete with the corporate bond markets.
China is in a bear market. As U.S. tariffs on Chinese goods are set to go into place Friday and the market waits for China's reply, there is fear among market participants. To really gauge the amount of fear in China, I look to the secondary exchanges, the largest of which is Shenzhen.
Much has been said about the millennial generation's investment practices ( or perhaps about the lack thereof). Suffice it to say, millennial investors often approach their financial decisions in a different way from generations before them. A once-standardized stock and bond portfolio is not necessarily an ideal approach for these young investors.