78.57 0.00 (0.00%)
After hours: 4:19PM EST
|Bid||78.00 x 1800|
|Ask||78.76 x 2900|
|Day's Range||78.56 - 78.65|
|52 Week Range||77.46 - 81.85|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.04|
|Expense Ratio (net)||0.05%|
The unemployment rate for October remained steady at 3.7%. The labor force participation rate also inched up to 62.9% from 62.7% in September. This unemployment rate is the lowest level in the last 49 years.
As the new year approaches, a lot of people make financial resolutions, most of which include something along the lines of building a better core portfolio. Although it sounds difficult, exchange-traded funds can help you accomplish this without too much extra thought. Your core could the most important piece of your investment puzzle, and picking the right ETFs to buy will make finding this vital piece a much easier task as we head into the new year.
Since the Fed might increase short-term rates by another 25 basis points at the December meeting, the yield curve (BND) could invert. The Fed has maintained that its future decisions will depend on market data (SPY) (IVV).
During an interview with Reuters, DoubleLine CEO Jeffrey Gundlach said that the current inversion of the yield curve (TLT) could signal that the US “economy is poised to weaken.” He added that the inversion at the short-end of the Treasury yield curve implies that the bond market doesn’t think the Fed plans to raise interest rates through 2019. As we discussed in Yield Curve Inverts for the First Time since 2007: What to Know, the spread between five and three-year Treasury yields narrowed to -0.01 percentage points on December 5.
The yield curve mainly reflects bond market investors’ expectations of the Fed’s actions and future economic conditions. As the Fed may hike up short-term rates by another 25 basis points at the December meeting, the yield curve could invert. The Fed has maintained that its future decisions will depend on market data.
A yield curve tracks the yields of Treasury securities maturing at different times. The narrowing of the difference between these yields is sometimes referred to as the “flattening of the yield curve.” In contrast, shorter-term security yields becoming larger than longer-term security yields is referred to as “yield curve inversion” (BND). Yield curve inversion is a cause for concern for some bond traders and investors, as it has been an indicator of upcoming recessions.
U.S. government debt prices ticked higher Friday morning amid political turmoil over Brexit and uncertainty surrounding the outcome of U.S.-China trade talks.
During a volatile October month, traders headed for the entrance to bond exchange-traded funds (ETFs) just as often as they headed for the exits. In particular, trader volume soared the most in the iShares Core US Aggregate Bond ETF (AGG), which saw $2.6 billion in withdrawals or 5% assets under management. Next, the iBoxx $ Invmt Grade Corp Bd ETF (LQD) experienced an outflux of 6% of its assets under management.
The unemployment rate for September declined by 0.2 percentage points to 3.7% compared to expectations of 3.8%. In August, the unemployment rate was 3.9%. The labor force participation rate remained unchanged at 62.7%.
U.S. government debt yields rose across the board Monday, rekindling fears higher borrowing costs would slow the economy. The uptick in Treasury yields Monday came nearly a week after the rate on the benchmark 10-year Treasury note topped its highest level since 2011 above 3.26 percent. Rates retreated later last week as investors sought the relative safety of the government debt market, bidding up bond prices and sending yields lower from their highs.
As we discussed previously in this series, the SPDR Gold Trust ETF (GLD) has fallen ~9.0% year-to-date and ~12.0% from its April peak. While gold prices have generally disappointed in 2018, there are many reasons to believe that this could be about to change and gold might be in the process of bottoming out. As we have discussed previously in the series, this buying is expected to continue going forward and with greater vigor, which should support gold prices.
On one hand, the growth is expected to slow down, but the Fed doesn’t seem to be in any mood to slow down. The concern is also that due to the lag between policy change and its visible impact on the economy (SPY) (DIA), the Fed might keep tightening the rates. Investors are concerned that the Fed isn’t clear on the neutral policy rate. In Why a Fed Policy Mistake Is Worrying Markets, we highlighted why investors are worried that the Fed could keep hiking rates until something actually breaks in the economy.
Central banks have been net buyers of gold (SGOL) since the beginning of the financial crisis of 2008. According to Atsuko Whitehouse at BullionVault, “Central banks are buying gold for their reserves at the fastest pace in 6 years.” Macquarie reports that a total of 264 tons have been added to the official-sector gold holdings in the first nine months of the year. As usual, the central banks of Russia (RSX), Turkey, and Kazakhstan were leading the pack.
Price of Tea In China Falls 3%, or Rather Stocks What do equities have to do with the price of tea on China? Who knows, but Chinese stocks (NYSEARCA:FXI) are way down, over 3% as the new week starts off, and this despite the People’s Bank of China (PBOC) made a People’s decision to cut […] The post Market Morning: China Chafes, Bonds on the Block, Aramco Back On, Sears On Its Deathbed appeared first on Market Exclusive.
As we’ve learned, stocks saw a sell-off in February after stronger-than-expected wage growth data. If today’s wage growth comes in on the upside, the markets could again go into panic mode. In a tweet, Bill Gross, the “bond king” and manager of Janus Henderson Global Unconstrained Bond Fund, mentioned the pricing out of European and Japanese buyers of Treasuries (BND) as the main reason for the bond sell-off.
On October 3, US bond yields (BND) soared due to a bond sell-off. While the ten-year US Treasury Yield (TLT) (TNX) hit its highest level since 2011 yesterday, the 30-year US Treasury Yield (UBT) hit its highest level since 2014.
The unemployment rate for August was unchanged at 3.9%, which was higher than economists’ expectations of 3.8%. The Fed expects unemployment of 3.5% by the end of 2018. According to the consensus, economists expect the unemployment rate to fall to 3.8% in September from 3.9% in August.
In the context of portfolio construction, the best thing about bonds is that they are not stocks. All these attributes lend themselves to bonds being less than perfectly correlated with stocks, making them good diversifiers of equity risk. As stocks continue to chug along and interest rates have lifted off from their recent lows and could climb higher still, now is a good time to revisit bonds' role in a diversified portfolio.
A yield curve tracks the yields of Treasury securities maturing at different times. When the yield curve (BND) inverts, it means that the yields of shorter-duration securities become larger than those of longer-term securities. The inversion of the yield curve has been a good indicator of upcoming recessions in the past.
Cambria Funds added new multi-asset ETF that incorporates a wide range of asset categories, with a focus on diversification, value investing and trend following. The recently launched Cambria Trinity ETF ...