|Bid||16.71 x 1400|
|Ask||16.72 x 1000|
|Day's Range||16.63 - 16.74|
|52 Week Range||14.42 - 18.47|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.86%|
Rising trade war concerns have played an important role in the market’s recent movements. As the world’s two largest economies, the United States (SPY) and China (FXI), enter into a historic trade war, many market participants are expecting that tensions could affect major emerging nations, whose demand outlooks could be hampered. Major commodities, including oil, showed some nervousness as market participants expected rising trade tensions to hamper the demand outlook for major emerging nations.
In the commodities market, there tends to be a negative correlation between the U.S. dollar and gold and other related metals. In the paragraphs below, we'll examine the charts of the broad commodities market and then dive deeper into the gold miners to see how this segment could be the one to watch over the weeks or months ahead. When it comes to tracking the commodities market, many retail investors turn to exchange-traded products such as the Invesco DB Commodity Index Tracking Fund.
Commodity prices and related commodity ETFs have fallen off in recent weeks on concerns over demand weakness in emerging markets, the ongoing trade war and potential oil production increases. Over the past month, the Invesco DB Commodity Index Tracking Fund (DBC) fell 1.9%, iPath Bloomberg Commodity Index Total Return ETN (DJP) dropped 5.0% and United States Commodity Index Fund (USCI) declined 3.3%. Goldman Sachs argued that concerns over oil and other commodities have been "oversold," and even those most exposed to the risks of a U.S.-China trade war are worth a second look, CNBC reports.
VAN ECK: I think about equity and debt very differently. On the debt side, especially now there’s some pressure on EM debt, what we’ve basically said is if interest rates are going up, you want some kind of credit risk, either high yield or EM. Cash flow growth is good.
A fundamental factor of the world commodities markets that many investors fail to appreciate is that, in most cases, the assets are priced and traded in U.S. dollars. This relationship is one of the key reasons that commodity prices have broadly weakened in recent weeks as the U.S. dollar has strengthened on the heels of increasing hype about trade wars and other geopolitical factors. In this article, we take a look at several charts suggesting that the sell-off in commodities could be overblown and that strategic traders may actually be looking to buy given the lucrative risk-to-reward setups.
I am writing today to help inform people who are new to the stock market and want to better understand how you can grow your money by investing in FirmaRead More...
Right now is a particularly strategic time to include commodities in your asset allocation mix. Joshua Kutin, Head of Asset Allocation, North America Investors generally consider commodities for enhanced portfolio diversification and a hedge against ...
If you are a shareholder in Firma Oponiarska Debica Spólka Akcyjna’s (WSE:DBC), or are thinking about investing in the company, knowing how it contributes to the risk and reward profileRead More...
Freeport-McMoRan Is Up ~13% in May: Can Hot Streak Continue? While commodities generally follow the underlying supply-demand dynamics in the long term, according to some observers, copper prices also tend to reflect macro developments. Copper has been dubbed as “doctor copper” because many market observers see copper prices as a reflection of the global economy.
In the previous part, we discussed that Goldman Sachs (GS) thinks that the interest rate hike will move at a faster pace in the economy. The rising budget deficit and falling unemployment rate are mainly signaling that the interest rate could move at a faster rate, according to Goldman Sachs. Since the US economy (SPY) is moving at a full employment capacity, many analysts think that the US economy (QQQ) is overheating. Rising inflation, higher backlog orders since 2004, and rising transportation costs are signaling that the US economy is overheating.
Precious metals tend to be the commodity segment of choice for those looking shelter against market volatility and uncertainty. The ascending triangle is created by having the price trade within a defined range that narrows toward the breakout point near the end of the pattern.
I am going to take a deep dive into Firma Oponiarska Debica Spólka Akcyjna’s (WSE:DBC) most recent ownership structure, not a frequent subject of discussion among individual investors. Ownership structureRead More...
Prices of commodities seem to be countering this trend and have actually been faring quite well. One of the most popular ETFs used by retail investors for gaining exposure to commodities is the PowerShares DB Commodity Index Tracking Fund. In case you aren't familiar, this fund comprises futures contracts on 14 of the world's most in-demand commodities such as oil, natural gas, gold, wheat and soybeans.
Firma Oponiarska Debica Spólka Akcyjna (WSE:DBC) is currently trading at a trailing P/E of 14.9x, which is lower than the industry average of 18.5x. While this makes DBC appear likeRead More...
Netflix impressed, yet again, by surpassing sky-high subscription estimates, ranking first on this week’s list. The unexpected shift to a more peaceful approach from the North Korean authorities, coupled with the upcoming summit between the two neighbors of the Korean Peninsula, put South Korea into the spotlight these past few days. Regional banks are set to capitalize on rising interest rates and deregulation, while commodities, particularly aluminum prices, whipsawed on strong demand, trade conflicts and U.S. sanctions. Check out our previous trends edition at Trending: Investors Apathetic to Barclays’ $1.2 Billion ETN Shutoff.
KEMMERER: Now that we understand why the macro environment is supportive, why don’t you tell us a little bit about the investment process? What we’re doing is looking at what drives these individual real asset equities.
When you think about where we are in the commodity cycle right now, we have a situation where we have global growth improving, we have a dollar that’s been weakening recently, and we have supply dynamics in the commodity markets which are back in balance. As this global economy continues its momentum and its growth, we’re starting to get to the point where we’re consuming more commodities than we’re producing, and that are available to the marketplace.
After years of languishing under low market volatility and weak global growth, commodities are on the move higher. One index is at a multi-year peak as prices rise in energy, gold and base metals. Traders in the space see the rally continuing in the face of a trade war threat and as the market gets more comfortable with the global economic growth theme.
Copper miners, including Freeport-McMoRan (FCX), Southern Copper (SCCO), and Antofagasta (ANTO), rallied last year as the metal surged ~30%. The charges are paid by copper miners to smelters for processing copper concentrates. Over the last year or so, LME inventory changes have been notorious for their timing, with sudden rises or falls impacting copper prices.
Firma Oponiarska Debica Spólka Akcyjna (WSE:DBC) generated a below-average return on equity of 11.17% in the past 12 months, while its industry returned 13.61%. Though DBC’s recent performance is underwhelming,Read More...
In this article, we’ll see how the trade war fear has impacted commodities (DBC). Specifically, we’ll be looking at aluminum and copper prices. Notably, copper is seen as an indicator of global economic activity, and some analysts refer to it as “doctor copper.” Falling commodity prices have led to a selling spree in copper miners like Freeport-McMoRan (FCX), BHP Billiton (BHP), and Rio Tinto (RIO).
There are expected, and possibly more aggressive, interest rate hikes over the next several years, and potential commodity supply constraints resulting from years of capital expenditure reductions in the metals and oil industries. Prices for commodities like gold, oil, copper, iron ore, cobalt, and lithium have been rising since mid-2017, mainly buoyed by higher demand due to widespread global growth. China’s supply-side curbs and years of weak investment in new mines globally put commodities in a sweet spot.
Once again interest rates are rising along with commodity prices. This economic upturn has been the slowest post-war expansion we have experienced and is soon to become the longest. Consequently, the global economic expansion has taken longer than expected but is gaining momentum.
The March 21 announcement by new Fed Chairman Jerome Powell indicated that the Federal Reserve is likely to be more aggressive in its rate hiking policy over the next few years as the effects of reduced business regulation, broad fiscal spending, and stimulative tax cuts are fully incorporated into the economy. After nearly a decade of the effective Federal Funds Rate hovering around 0%, we feel the time for investors to critically evaluate their portfolio’s performance in rising interest rate environments has arrived. Looking at tables of historical performance for a number of asset classes in rate hiking cycles over the last 50 years, perhaps most striking is the performance of commodities—including gold.
Strong chart patterns for key commodity-related ETFs suggest that this could be one of the only segments to withstand a continued sell-off.