|Bid||0.00 x 36100|
|Ask||0.00 x 3100|
|Day's Range||14.90 - 15.04|
|52 Week Range||13.50 - 18.81|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.25|
|Expense Ratio (net)||0.75%|
Goldman Sachs says commodity prices plunging to its worst week this year, but it's a great buying opportunity. Goldman forecasting a 3-month return of 6.1%. Path Trading Partner's Bob Iaccino joins Yahoo Finance's Seana Smith.
Money flow into the market’s largest ETFs have recently mirrored the relative price performance between large caps and small caps, which indicates that investors are still cautious.
Goldman expects commodities to surge around 17% over the coming months. We have highlighted five ETFs which we think could be well positioned if Goldman prediction comes true.
As the headwinds are likely to continue to dissipate, the potential benefits of real asset investing are coming into clearer focus. Notably, an allocation to real assets can be used to help investors enhance portfolio diversification, gain exposure to global growth, and hedge against the impact of inflation. As the current environment progresses, it is a good time to consider the impact of inflation and an allocation to real assets.
Inflation is something that has not been seen in well over a decade, but the ingredients are there: a strong U.S. economy, unemployment at historic lows, and the recent stimuli of tax reform, deregulation, and government spending, which may not even have fully taken hold yet. Plus, recent indications from the Fed continue to indicate a potentially more aggressive approach to tightening. In developed countries, inflation had languished below the central bank’s target level for many years.
To many market observers, the first quarter of 2016 marked the low point for sectors commonly associated with real assets. Stagnant global growth, oversupplied commodities markets, a strong U.S. dollar, and natural resource companies with bloated balance sheets overridden by enormous debt all combined to create tremendous headwinds that obscured the potential benefits of adding real assets to an investment portfolio. The recent environment, characterized by economic growth and heightened inflation expectations, provides an ideal backdrop for investors to consider real assets and their potential benefits.
The S&P 500 fell ~0.21% to 2,773.75 on June 18. Trade wars between the US and China pressured the S&P 500 on the same day. However, increased crude oil prices and energy stocks helped the S&P 500 rebound from the day’s low. Seven out of the ten key sectors in the S&P 500 declined on June 18.
On June 8–15, US crude oil July futures fell 1%. On June 15, US crude oil July futures settled at $65.06 per barrel. Last week, the US dollar rose 1.3%—a negative development for oil prices. The PowerShares DB US Dollar Bullish ETF (UUP), which tracks the US dollar, rose 1.3% last week.