117.19 +1.49 (1.29%)
Pre-Market: 8:11AM EDT
|Bid||117.06 x 3100|
|Ask||117.04 x 3100|
|Day's Range||115.43 - 115.78|
|52 Week Range||111.06 - 129.51|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.17|
|Expense Ratio (net)||0.40%|
Yamana Gold (AUY) stock has outperformed its peers (GDX) YTD (year-to-date). Until October 11, the stock has lost 13.1% against Agnico Eagle Mines’ (AEM), Kinross Gold’s (KGC), and IAMGOLD’s (IAG) stock declines of 19.1%, 31.5%, and 32.2%, respectively. AUY’s operational performance has been strong in 2018.
Investing in the yellow metal is often tricky, particularly in turbulent markets. Here’s how investors can play the upside or the downside.
After outperforming its peers in the first half of 2018, Goldcorp’s (GG) stock slumped. Its second-quarter earnings were also a miss on market expectations, as were its first-quarter earnings. Moreover, the overall sentiment on gold and gold stocks turned extremely negative starting April, hurting GG stock as well.
Yesterday, the Federal Reserve released the minutes from its September 25–26 meeting. Read When Will Fed Tightening Start to Hurt the US Economy? for a summary of the Fed’s actions at the meeting and the market’s reaction to them. The meeting minutes were slightly more hawkish than expected, and they signaled that most Fed officials believe that interest rates must continue to rise.
In October, fund managers rotated to energy and material stocks while divesting growth and cyclical stocks. The overweight position in technology stocks declined significantly. As we highlighted in As Tech Leads the Market Decline, What are Investors Eyeing, tech stocks were the frontrunners in the sell-off as they are the same companies that have seen huge upward runs in 2018.
This year started on a lukewarm note for gold and gold miners, and things started worsening after April. Gold prices have failed to draw a bid in 2018 despite many market uncertainties, including trade war tensions, the emerging market (EEM) currency crisis, and other geopolitical concerns.
Technically speaking, the major U.S. benchmarks have reversed from multi-month lows, rising in the wake of an aggressive October downdraft, writes Michael Ashbaugh.
Wall Street’s latest case of the yips finally injected some much needed life into precious metal futures. Gold, silver and platinum have floundered near 52-week lows or worse in the midst of a seemingly unassailable U.S. Dollar and generally stable commodity prices. In the midst of falling stock prices, both the USD and crude have taken a hit, which has prompted some to turn to gold and platinum for value stores while the volatility plays out.
To most Americans, a $21-trillion national debt and a $779-billion federal deficit may seem like they have no impact on day-to-day life. The latest U.S. budget deficit numbers are enough to keep any fiscally minded American up at night. The numbers out of Washington indicate the national debt could rise by $1 trillion in 2019 alone.
Gold, Miners Have Surged on the Market Rout—What’s the Upside? In the current sell-off, technology companies (XLK) (SMH) are leading the decline. Investors’ stretched valuation concerns have been especially acute in the US tech space, meaning that tech stocks are much more vulnerable to higher interest rates.
The International Monetary Fund (or IMF) cut its estimates for global growth for this year and for 2019, citing trade tensions between the US and its trading partners. It now estimates the global growth will come in at 3.7% in 2018 as compared to its previous estimate of 3.9%. The “World Economic Outlook” report is published twice a year, in April and October.
Usually, gold miners are a leveraged play on gold prices, meaning that when gold prices rise, gold miners outperform the underlying commodity, and vice versa.
Gold, Miners Have Surged on the Market Rout—What’s the Upside? The Commodity Futures Trading Commission reports the positions of major players in the futures market in its COT (Commitment of Traders) report. It’s released every Friday and shows the open interest recorded on the previous Tuesday.
The SPDR Gold Trust ( GLD) and the gold futures contract have turned higher at key retracement levels in reaction to spiking volatility and may have bottomed out, despite the Federal Reserve's aggressive rate hike schedule. This buying spike could signal better times for gold bugs and mining companies dependent on pricing for the yellow metal while adding firepower to an expanding commodity sector uptrend that could last well into the next decade. President's Trump blistering criticism of the Federal Reserve may have contributed to the rally because few folks underestimate his power to politicize the central bank in the coming years.
To receive further updates on this SPDR Gold Shares (NYSE:GLD) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today. Today I am recommending a bullish trade on the SPDR Gold Shares (NYSE:GLD), an ETF that tracks the price of gold. The Fed has been tightening in response to what it sees as inflationary pressure on the economy, but there is simply not as much inflation as the central bank is saying.
RAAX only invests in asset classes that the model is bullish on, and the weightings themselves are not an indication of conviction but are instead determined by RAAX’s optimization process that seeks to maximize diversification and minimize volatility. In September, RAAX added a 33% allocation to U.S. Treasury bills. Should the number of bearish segments continue to increase, RAAX has the ability to expand its cash position and allocate up to 100% in cash to avoid a pervasive market drawdown.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
Does the Sell-Off Imply Market Repositioning for Lower Growth? One of the major market worries at the core of the current market sell-off is the coming earnings deceleration. The stock market rally in 2018 has been fueled in part by the tax reform windfall.
Does the Sell-Off Imply Market Repositioning for Lower Growth? Technology companies are the ones leading the current market decline. Amazon (AMZN), Netflix (NFLX), and Apple (AAPL) stocks took a sound beating yesterday and plunged 6.1%, 8.4%, and 4.6%, respectively.
The US consumer price index (or CPI) for September was released today at 8:30 AM EST. The inflation numbers were weaker-than-expected, with the CPI rising just 0.1% sequentially compared to 0.2% expected by economists. In the 12 months through the end of September, the CPI rose 2.3%, which was lower than a 2.7% rise in August.
The budget balance is the difference between what a country’s government garners from taxes and other sources and what it spends. A budget deficit occurs when spending exceeds earnings. In such a situation, the government borrows money from its citizens as well as foreign entities. As this debt accumulates, it’s possible that the value of its currency could decrease. The US (SPY) (VTI) budget deficit is creeping up.