|Bid||254.75 x 800|
|Ask||0.00 x 1800|
|Day's Range||253.28 - 257.94|
|52 Week Range||252.92 - 293.94|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.09%|
The Federal Reserve's final policy meeting of the year comes amid volatility in markets, criticisms from the President, and concerns about the global economy.
One often-cited reason for the current market volatility and the reason for expected pressure on companies’ earnings is trade uncertainty, especially between the United States (SPY) and China (FXI). The third round of tariffs on China has especially hit the markets (DIA) (VTI) hard.
Over the past month, shares of the Boeing Company (BA) have been battered significantly as a result of multiple headwinds. Boeing holds the eighth-place spot among the 16 Dow 30 stocks that have posted YTD gains. Boeing was the Dow’s top performer for most of 2017, earning its investors 88% in the year.
The VIX shows that many sophisticated investors appear to be positioning for a rally in the short term.
According to CNBC, Goldman Sachs (GS) analyst David Kostin released a research note on December 14, in which he said, “Investors should increase their defensiveness given our forecast for heightened risk and fat tails.” The bank’s conviction for the markets next year is mixed and the firm advises clients to protect themselves by owning “high quality” stocks. GS also believes that a lot of the movements in the markets in 2019 will depend on investor perception of the longevity of the current economic expansion. To be in a late cycle of economic expansion typically means growth slowing down and margins contracting, accompanied by higher inflation (TIP) and volatility (VIX).
President Trump is an active Twitter user. President Trump has targeted several companies including General Motors (GM), Ford (F), Amazon (AMZN), and Apple (AAPL) in his tweets. In this part, we’ll discuss some of President Trump’s tweets that misfired in 2018.
Earlier this month, US President Donald Trump and Chinese President Xi Jinping met in Argentina and discussed resolving trade disputes between their countries, the world’s two largest economies. Trump and Jinping both agreed to negotiate terms to reach a trade agreement, and they also agreed not to impose any new tariffs for 90 days while they negotiate. After meeting Jinping, Trump said that China has agreed to “reduce and remove” tariffs on the US-made vehicles.
Towards the end of 2017, the term “synchronized global growth” cropped up. In January, the IMF (International Monetary Fund) raised its 2018 global economic growth forecast to 3.9% from 3.8% and emphasized that the growth was “the broadest synchronized global growth upsurge since 2010.” Six months later, the IMF said that “growth has become less synchronized.” In October, the IMF lowered its global growth forecast for 2018 and 2019 from 3.9% to 3.7% due to the trade war. China’s slowdown has been among the biggest risks for global markets.
The S&P 500 has violated major support, confirming its primary downtrend ahead of a potentially consequential Federal Reserve policy statement, writes Michael Ashbaugh.
We’re getting towards the end of 2018. In this series, we’ll analyze equity markets in 2018 and some of the market-moving developments.
In the week ending on December 7, US crude oil inventories were 7% higher than their five-year average—one percentage point more than the previous week. Oil prices and the inventories spread usually move inversely.
December started with a new turn in the US-China trade war. President Trump and President Jinping met in Argentina. Although the tensions between the two nations seem to be easing, the trade war isn’t over yet.
Berkshire Hathaway (BRK-B) chair Warren Buffett hasn’t been an admirer of cryptocurrencies. Buffett also said that “in terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.” He added, “If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth.” Given the sharp decline in bitcoin, Buffett seems to have had the last laugh. Along with the trade spat between the United States (SPY) and China, the crash in cryptocurrencies like bitcoin was a key highlight of 2018. The prices of bitcoin, the most popular and well-known cryptocurrency, have fallen to almost $3,000.
It is the multi-family segment picking up the slack from the single-family housing segment. Single-family starts fell for the third straight month.
On December 17, US crude oil February futures fell 2.5% and settled at $50.20 per barrel. Investors have a lower appetite towards riskier assets, which could be behind oil’s fall. The Energy Select Sector SPDR ETF (XLE) fell 1.8% on the same day.
Could Market Risks Bring Investors Back to Gold in 2019? As we’ve discussed in this series, market uncertainty is increasing after an unusually calm 2017 and part of 2018. The major sources of uncertainty are expected to be the looming trade war between the United States and China (FXI), the coming earnings and margins deceleration, the Brexit deal, and the Fed’s policy path.
Today, Chinese President Xi Jinping delivered a speech on the occasion of the 40th anniversary of China opening up its economy. The speech was closely followed amid China’s slowdown and its trade spat with the United States (SPY). While Jinping talked about reforms and opening up the Chinese economy (FXI), the speech didn’t offer any specifics.
President Donald Trump has repeatedly cited the U.S. trade deficit with China as grounds for the trade war. Let's take a closer look at what a trade deficit is, the current U.S. trade balances with its primary trading partners and whether the trade war has eliminated the China trade gap. What Is A Trade Deficit? In the most basic terms, a trade deficit is created when a country’s imports exceed its exports.
In a press release on December 14, PPG Industries (PPG) announced that it has entered into a definitive agreement to acquire Whitford Worldwide. PPG Industries expects the acquisition to be completed in the first quarter of 2019. The full contribution to PPG Industries could be more visible in the second quarter of 2019.
As noted in the previous article, earlier this year, Berkshire Hathaway took a small stake in India’s Paytm. Walmart (WMT) also made a huge bet on India with its acquisition of Flipkart. Amazon (AMZN) has also been spending substantially in India.
The market is expecting to pare its anticipated rate hike outlook for 2019 from the current three to two or even one. While the US labor market is firm, the inflation pressures have yet to show up, which is causing investors to anticipate an easier policy path going forward.
Could Market Risks Bring Investors Back to Gold in 2019? The yield curve tracks the yields of Treasury securities maturing at different times. The narrowing gap between these yields is sometimes called a “flattening yield curve.” If shorter-term security yields become larger than longer-term security yields, that’s called a “yield curve inversion” (BND).