|Bid||141.87 x 800|
|Ask||141.89 x 1300|
|Day's Range||141.64 - 144.33|
|52 Week Range||111.85 - 144.33|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.06|
|Expense Ratio (net)||0.40%|
The Grayscale Etherium Trust, a hybrid of several kinds of fund structures, trades at an enormous premium to Ethereum’s actual price. This fund is a good way for wealthy investors to get out of their position, but not for retail investors to get in.
The SPDR Gold Shares (GLD) , the world's largest gold-backed ETF, is up nearly 17% year-to-date, but one of the most common complaints gold investing lingers: that the yellow metal (and other commodities funds) don't generate income. Gold is believed by many investors to be inversely correlated with interest rates. Rising interest rates make bonds and other fixed-income investments more attractive so that the money will flow into higher-yielding investments, such as bonds and money market funds, and out of gold, which offers no yield at all during times of higher interest rates, and back into gold ETFs.
Cleveland Federal Reserve President Loretta Mester, a non-voter on interest-rate policy this year, remains undecided whether she will recommend a rate cut when the Fed meets in coming weeks, even though she was not in agreement with the cut the Fed panel put in place earlier this summer. Mester, in a CNBC appearance from the annual central bank conference in Jackson Hole, Wyo., said she's still assessing data but should the economy remain at its current level of health, she'll lean toward no follow-up cut. U.S. rates should be higher than those in Europe and China, she said. Still, the current trade fight remains a key risk, she said. Stock futures were dropping as Mester conducted the interivew, after China announced a set of tariffs in reaction to U.S. tariff policy. The trade spat is hitting investor sentiment, Mester said, but the consumer so far remains strong. The next job-market report will be very important, she said.
As global central banks begin to loosen their monetary policies to support the growing economies, investors should consider gold-related ETFs to maintain their purchasing power. “Gold’s long-term prospect ...
When the market is turbulent, investors often embark on a flight to safety. That means investors will pile into risk-off assets, such as Treasuries, gold and consumer staples. Indeed, this is exactly what has happened over the last month. While the S&P 500 is off more than 2% in the last month, the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) is up 9%, and the SPDR Gold Shares (NYSEARCA:GLD) is up 5%. And since Aug. 5, the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) has gained 5%.Source: Shutterstock Given that backdrop, one would assume a food and product packaging company like Sealed Air (NYSE:SEE) would also have benefited from this August flight to safety. It did, for awhile. At one point in early August, SEE stock price was up nearly 10% in August. But the stock has since given up most of those gains, and now SEE stock price is more than 5% off its August highs, while TLT, GLD, and XLP are all at or right next to their August highs.In other words, while SEE stock was initially thought of as a great risk-off investment in this stumbling economy and turbulent market, investors have since second-guessed the relative safety of Sealed Air stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI totally get it. Ostensibly, SEE stock seems very stable, with a fairly attractive valuation and a steady yield. But at this point, it has optical issues which may keep SEE stock price relatively muted for the foreseeable future. * 7 Great Small-Cap Stocks to Buy As a result, I think Sealed Air stock is best left alone for now. Its fundamentals are strong enough that it's not a great short. Its optics are troubling enough that it's not a great long. In such a situation, the sidelines are the best place to hangout. Sealed Air's Fundamentals Are Pretty GoodThe fundamentals supporting SEE stock price are pretty good, and they're mostly favorable to the bull thesis.SEE is a global food and packaging company. Its business is pretty stable. No matter what the global economy is doing, the world is still going to have to transport staple food and goods. It's true that, as global economic activity slows, so will the trading of these goods. But the slowdown will be gradual, and it won't be that steep.Consequently, Sealed Air's performance over the past several years - a low-to-mid-single=digit-percentage revenue grower, excluding acquisitions, with slight margin expansion and low-to-high-single-digit-percentage EBITDA growth - will probably be largely duplicated over the next several years. Its growth will likely slow a bit as the global economy weakens. But Sealed Air should be able to grow its revenues at a low-single-digit rate over the next several years, on largely stable margins, which - when coupled with its buybacks of SEE stock - should produce high- single-digit-earnings per share growth.Sealed Air's EPS can reach somewhere around $4.80 by fiscal 2025. Based on a forward price-earnings multiple of 17, which is average for the packaged-goods sector, that implies a fiscal 2024 price target for SEE stock of over $80. Discounted back by 10% per year, that equates to a 2019 price target of about $50.SEE stock price is slightly above $40 today. Thus, the long term growth fundamentals currently say that Sealed Air stock is undervalued. The Optics Give PauseAlthough SEE stock is undervalued, the optics surrounding Sealed Air warrant this undervaluation for the time being. Specifically, there is an active SEC investigation overhanging Sealed Air which has created a lot of distractions. These distractions detract from Sealed Air's value as a risk-off investment during turbulent times.This SEC investigation has shifted into another gear in 2019. In May, Sealed Air was served a subpoena relating to a previously disclosed SEC investigation into the company's accounting practices. That additional subpoena has had an avalanche impact on the company.A month later, Sealed Air fired its CFO. Three months later, the company received a grand jury subpoena from a U.S. Attorney for documents related to the firing. A week after that, Sealed Air switched audit firms. And, a week after that, Upslope Capital Management, which was shorting Sealed Air stock, issued a report, citing the SEC investigation and accounting irregularities as two big reasons why it believed that SEE stock would head lower.Against the backdrop of all those distractions, Sealed Air's organic revenue growth has slowed to a multi-year low in 2019.In other words, SEE stock price is being weighed down by slowing growth trends against the backdrop of a ton of SEC/accounting noise that doesn't give investors confidence. Slowing growth plus a lack of confidence is not a winning combination.So despite SEE's favorable fundamentals, SEE stock price likely won't march meaningfully higher anytime soon. The Bottom Line on SEE StockIt's easy to look at SEE stock and see a stable consumer staples stock that should theoretically outperform during turbulent times. But that cursory analysis ignores the ugly optical risks overhanging the company. Those unfavorable optics will ultimately put a cap on near-term gains by SEE stock, making it unattractive for now.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Sealed Air Stock Is Cheap, But Unattractive appeared first on InvestorPlace.
Gold ETFs have been a shining through a gloomy market as investors poured billions of dollars into this asset category in face of rising uncertainty. According to the World Gold Council, investors funneled $2.6 billion into gold bullion-backed ETFs in July, raising their collective holdings to 2,600 tons, or the highest level since March 2013, the Wall Street Journal reports. Meanwhile, gold prices rallied 17% over the past three months and recently broke above $1,500 per ounce for the first time in six years.
Gold ETFs, including the SPDR Gold MiniShares (GLDM) and SPDR Gold Shares (GLD) , added to recent gains Wednesday as the yield curve again inverted, stoking fears of a recession. Gold is also catching a bid because some market observers believe with low inflation and the potential for a slowing economy, the Fed may step in and cut interest rates multiple times before the end of this year to go along with the rate revealed last month. Gold is believed by many investors to be inversely correlated with interest rates.
Gold, like other commodities, is often denominated in U.S. dollars. This means investors buying ETFs such as the SPDR Gold MiniShares (GLDM) and SPDR Gold Shares (GLD) typically want the greenback to weaken. Gold has long been used as a safe haven asset, particularly when the value of the dollar declines or investors fear market volatility and uncertainty, like in the case of a tariff war.
Whether it's investors' desire for safer assests, a world awash in low and negative interest rates or central banks gobbling up gold, bullion's rally is credible and based on solid fundamentals. “US-China trade negotiations continue to be a random walk,” said State Street in a recent note. In the second quarter, GLD saw inflows of more than $526 million while the fund's low-cost counterpart, the SPDR Gold MiniShares Trust (NYSE: GLDM), added nearly $83 million.
As Treasury yields continue to skydive, gold price levels could go through the roof as the scrambler for safe haven assets continues amid the latest market volatility as trade wars between the U.S. and China rage on. This could provide more gains for gold-focused exchanged-traded funds (ETFs) as analysts are predicting that the precious metal could shoot past the $2,000 per ounce price mark. The weakness in the U.S. dollar caused gold to climb, but the case for the precious metal is also coming from the bond markets.
Asian markets continue to bleed on increasing geo-political issues and slowing global economic growth. This, in turn, has been adding to the appeal of safe-haven ETFs.
Hong Kong Continues Its Slide Into Chaos With Chinese Troops On The Border Hong Kong stocks (NYSEARCA:EWH) are sliding again, down 15% in a month, as a second mass protest in the Hong Kong airport is threatening to shut down all international flights again. There is worry now that we could see another Tiananmen Square-type […]The post Market Morning: Hong Kong Chaos, Rates Plummet, Gold Soars, Hybrid Lull, Uber Bleeds appeared first on Market Exclusive.
Gold has had a strong run so far this year as geopolitical tensions swirl and bond yields go increasingly negative, and the party may not be over yet.
The collapse of interest rates worldwide to zero and below suggests a financial world that is dark and cold. Yet the plunge in bond yields to historic lows correspondingly results in high values for many assets.
The demand for gold rose 8% in the second quarter, according to the World Gold Council. Central banks and ETF buyers helped drive that demand, taking in $2.5 billion in net new inflows thus far this year. Matthew Bartolini of State Street Global Advisors joins Yahoo Finance’s Adam Shapiro and Julie Hyman to discuss.