|Bid||0.00 x 1000|
|Ask||0.00 x 1200|
|Day's Range||24.70 - 25.67|
|52 Week Range||20.83 - 34.42|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-2.77|
|Expense Ratio (net)||0.93%|
With a contentious midterms election season coming up, many anticipate a split government that could potentially impact the way ETF investors ride the markets ahead. Some expectations point to Democrats winning back the House of Representatives and the Republicans maintaining a narrow hold on the Senate - Republicans currently dominate both chambers. "If the consensus expectation of a divided government turns out to be correct, the most likely political consequences would be an increase in investigations and uncertainty surrounding fiscal deadlines," David Kostin, Goldman's chief U.S. equity strategist, said in a note.
While investors may be questioning their equity exposure after the recent bout of volatility, U.S. stock ETFs may still find support from strong fundamentals. Sam Stovall, Chief Investment Strategist of U.S. Equity Strategy at CFRA, pointed out in a recent research note that since October, the S&P 500 has witnessed a 40% surge in average intra-day volatility, compared to the first nine months of the year.
Historically, the Dow Jones Industrial Average returned an average 0.6% over October, which has made it the seventh-best month of the year. The S&P 500 typically added 0.9% over October, which is also good enough for seventh place, with the same ratio of positive October months to negative ones as the Dow. Meanwhile, the Nasdaq Composite Index's October was historically the eighth-best month of the year, going back 46 years.
Investors are turning to the options market to hedge bets ahead of the U.S. midterm elections. ETF investors can also plan for potential political risk ahead with bearish or inverse exchange traded funds. The fall months have traditional been a seasonally volatile period for the equity market, and this year, the midterm elections on November 6 will add to the uncertainty as voters head to the polls and determine whether Republicans will maintain control over Congress or lose ground to Democrats, writes Gunjan Banerji for the Wall Street Journal.
Equity investors who are wary of any further swings can look to alternative ETF strategies to limit the potential risks. According to data from "Stock Trader's Almanac," the month of September has been the worst performing month of the year for the Dow Jones Industrial Average and the S&P 500 since 1950, the worst for the Nasdaq since 1971, and the most difficult for the Russell 1000 and Russell 2000 since 1979, CNBC reports.
Morgan Stanley's chief U.S. equity strategist Michael Wilson warned the equity market is heading toward a destructive phase, CNBC reports. "The Nasdaq could correct by 15 percent plus, the S&P 500 probably goes down about 10 [percent]," Wilson told CNBC.
Trade tensions, especially between the world’s two largest economies, have been playing foul on the stock market over the past several months. The new tariff will go into effect sometime after Aug 30. China’s commerce ministry called the U.S. actions “completely unacceptable” and warned of retaliatory moves.
The latest shot in the escalating trade dispute could prove to be catastrophic for stocks, thereby raising the appeal for inverse or leveraged inverse ETFs that could generate big gains in a short span.
For starters, you MUST have a diversified long-term portfolio with many forms of low-volatility, non-correlated investments like The Liberty Portfolio, my stock advisory newsletter. The Liberty Portfolio is specifically designed for all market periods, up or down, bull or bear. The simplest and most straightforward leveraged ETFs move on a bear stock market is the Direxion Daily S&P 500 Bear 3x ETF (NYSEARCA:SPXS).
After eight long years of gains, the bull may be getting a tad bit tired. Stock valuations are near historic highs, there has been some weakness with economic data and the markets have recently begun to take a breather. It seems that the bull might be running out of steam.