|Bid||130.53 x 2200|
|Ask||130.54 x 800|
|Day's Range||129.96 - 130.58|
|52 Week Range||111.90 - 134.29|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||3.17|
|Expense Ratio (net)||0.15%|
The Global CIO of fixed income at BlackRock said the Federal Reserve should aggressively cut interest rates.
The bond market flashed yet another warning signal for investors on Wednesday that a downturn for the economy may be coming. The 30-year Treasury yield dropped 0.032% on Wednesday to 2.476%, its lowest level since October of 2016. The chart below shows the last six times 30-year yields fell below the fed funds rate.
Here, I will share some simple ways to cut back on the amount of risk in your investment portfolio. The relationship between stocks and bonds provides some insight as to how we can think about the stock-bond mix. The point in the upper right-hand corner represents a 100% stock portfolio and the point on the lower left a 100% bond portfolio.
Dividend payers still look good as rates drop and bonds rally. With a bearish divergence in small caps, everything's riding on earnings growth.
ETFs have become a go-to investment vehicle for many investors across a range of backgrounds, revealing the shifting trends in investors’ habits and thoughts in a changing market environment.
US-Iran and US-China relations have worsened of late. The flare-up in geopolitical tensions could result in a rally in safe-haven ETFs.
As the first half of 2019 comes to a close, equity markets ranging from the U.S. to China are up between 10%-20%. Usually when markets have reached peak economic growth and are towards the tail end of their expansion, they are vulnerable to such extreme fluctuations between ultra-bullish to uber-bearish, as witnessed over the past one and a half years. Thanks to central banks around the world diligently pursuing quantitative easing -- just because they don't know what else to do to kick-start economic growth -- and even the U.S. Fed ever ready to maintain its support by holding off on raising rates, yields are trading at record low levels.
The overall investor sentiment has been bearish given the US-China trade tensions and deteriorating economic reports. In addition to bonds (BND), investors are also looking to gold due to its safe-haven appeal. Not only this, there are many other factors that are currently going in gold's favor.
With more expecting the Federal Reserve to cut interest rates ahead, exchange traded funds that track long-term debt are beginning to pick up steam as investors hunt for attractive income in a lower-for-longer yield environment. Investors and analysts highlighted the worsening projections for growth as a catalyst for the Federal Reserve to its loosening monetary policy outlook instead of tightening it. Sentiment for a rate cut picked up Wednesday and Thursday after the Fed held rates steady but signaled a possible cut in the months ahead to combat the weakening effects of a prolonged trade war.
According to the latest Bank of America Merrill Lynch survey, government bonds are the most crowded trade. It is the first time in the history of BAML that the preference for Treasuries has topped the list. The US government bonds were cited by 27% of the fund managers, topping long tech trade, which came at the second position.
Jeffrey Gundlach was surprised when the Fed switched to a dovish stance and predicted no hikes this year, and he thinks that change is "not reassuring.”
Yahoo Finance's Jessica Smith spoke with U.S. Representative Maxine Waters following Fed Chair Jerome Powell's testimony. She joins Seana Smith on 'The Ticker' to discuss.