|Bid||25.65 x 45900|
|Ask||25.99 x 47300|
|Day's Range||25.69 - 25.75|
|52 Week Range||23.29 - 26.12|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||2.59|
|Expense Ratio (net)||0.76%|
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.
While a strong U.S. dollar benefits some, it negatively impacts others. These are the advantages and disadvantages of a strong U.S. dollar and who gains and loses.
Venezuela’s economy may have fallen completely into disarray, but markets are looking for a political resolution that would open the doors for various investments.
The U.S. dollar and related exchange traded funds just experienced back-to-back session gains, reflecting the ongoing strength in the greenback and adding to concerns for some. ETF traders can gain exposure to an appreciating greenback through targeted ETF strategies. For instance, the PowerShares DB U.S. Dollar Index Bullish Fund (UUP) tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
A continued rally in transportation stocks could do a lot to offset potential bad news in upcoming earnings reports from consumer sectors.
It’s the End of the Rate Hiking Cycle As We Know It, And Fed Feels Fine Yesterday’s press statement from the Federal Open Market Committee, the term that the Federal Reserve prefers to call itself when deciding when and how to intervene in the bond market to tinker with overnight interest rates, was received dovishly […] The post Market Morning: Fed Breaks the Cycle, New iPhone Cameras, Cold Grounds GM, Congress Moves on Trade appeared first on Market Exclusive.
The South African economy received a boon last week from its largest trade partner, China, as authorities in Beijing promised to implement monetary and fiscal stimulus. In the U.S., despite the three-week funding deal announced last Friday, airlines were brought to the very edge by the longest government shutdown in history. FAANGs caught this week’s podium with earning releases while worries regarding the slowdown in global economic activity and uncertainties over Sino-U.S. relations took a toll on the U.S. dollar. Finally, investors took interest in leveraged bets on commodities as oil surged after U.S. slapped fresh sanctions on Venezuela. Check out our previous trends edition at Trending: Investors Turn to Dividend Aristocrats Amid Market Volatility.
Gold’s Long-Term Outlook Is Upbeat despite Short-Term Headwinds(Continued from Prior Part)Jeffrey Gundlach recommends gold The so-called “bond king” and the CEO of DoubleLine Capital, Jeffrey Gundlach, said during Barron’s 2019 Roundtable
Gold’s Long-Term Outlook Is Upbeat despite Short-Term HeadwindsGold’s soft start 2019 has started on a relatively soft note for gold prices. As of January 24, gold prices (GLD) have remained flat year-to-date. Gold has underperformed the broader
Ray Dalio Thinks a Recession Is ComingRay Dalio’s take on ChinaBridgewater Associates founder Ray Dalio is in Davos, Switzerland, for the World Economic Forum (or WEF), where he offered his take on the slowdown in China and how it could impact
Which Five Gold Stocks Are Analysts Loving So Far in 2019?Gold’s soft startGold prices have started 2019 on a relatively soft note. YTD (year-to-date), as of January 17, gold prices (GLD) have risen 0.7%. Gold has underperformed the broader
Among the most popular calls on Wall Street heading into 2019 was the call for a weaker dollar. Last year, the Invesco DB US Dollar Bullish ETF (NYSE: UUP ) gained 7.1 percent, easily making it one of ...
Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? ## Assessing Gundlach’s predictions So-called bond king Jeffrey Gundlach, who is also the CEO of DoubleLine Capital, made his predictions for 2019 on a variety of topics, including debt markets, stock markets, Bitcoin, the state of the economy, and interest rates, in his annual “Just Markets” webcast on January 8. Before we look at what Gundlach expects for the year ahead, let’s have a look at what he predicted last year and how many of those predictions actually came true. ## Stock markets to turn negative One of Gundlach’s key calls for 2018 was that the equity market would end the year in negative territory. He said it would be completely different from what we experienced in 2017 and that it was payback time. In December 2018, Gundlach said, “I’m pretty sure this is a bear market.” He also said he expected the S&P 500 to fall below the lows it hit early in 2018. These predictions came true, and December turned out to be the worst December for markets since 1931. The S&P 500 (SPY), the Dow Jones Industrial Average (DIA), and the NASDAQ Composite Index (QQQ) fell 6.3%, 5.7%, and 1%, respectively, in 2018. Gundlach was also right about emerging market equities (EEM). He suggested that it isn’t a good time for traders to be buying them, but long-term investors might benefit. The MSCI Emerging Markets Index fared much worse than US markets. In April, Gundlach described Bitcoin as the current dot-com bubble. He also said that Bitcoin had rallied and peaked in 2017 along with equity prices. Bitcoin prices have been mostly falling since peaking in December 2017. ## Some misses However, Gundlach wasn’t right on all his predictions. His expectations regarding a big downside in the US dollar (UUP) didn’t come true. Moreover, he was very bullish on commodities (XME) (XLE) and even said, “What I mean by massive is not a 30% gain, it is 100%, 200% or even 400%.” This prediction also didn’t come true, with most commodities providing negative returns for the year. With the above information as our context, let’s see what Gundlach is predicting for the economy and the markets in 2019. Continue to Next Part Browse this series on Market Realist: * Part 2 - Jeffrey Gundlach: How to Survive the Market Zigzags in 2019 * Part 3 - Gundlach: Junk Bond Market Is Flashing Yellow on Recession * Part 4 - Why Gundlach Expects a Wave of Corporate Downgrades to Come
Among the various asset classes accessible via exchange-traded funds (ETFs), currencies often go overlooked by many investors. That is likely an extension of the well-documented home country bias many investors have. In the U.S., investors are apt to embrace dollar-denominated investments, be it bonds, commodities or other assets. Even when it comes to investing in ex-US markets, American investors often overlook currency risk in favor of vehicles denominated in dollars. This year, the Invesco DB US Dollar Index Bullish Fund (NYSEARCA:UUP), which tracks the greenback against a basket of major foreign currencies, is one of the best-performing currency ETFs. UUP gauges the dollar's performance against the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc and is up 6.33% year-to-date. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Oversold Stocks Due for a Bounce However, as is the case with other assets, dollar bull markets do not last forever and with some market observers forecasting dollar declines in 2019, some other currency ETFs may be worth considering. Here are some currency ETFs to mull over in the New Year. ### Invesco DB US Dollar Index Bearish Fund (UDN) Expense Ratio: 0.80% per year, or $80 per $10,000 invested Put simply, the Invesco DB US Dollar Index Bearish Fund (NYSEARCA:UDN) is the bearish answer to the aforementioned UUP. UDN is arguably the most well-known bearish currency ETF and it is not leveraged, so it is less volatile and an easier hold for investors looking to be short the greenback for several days or weeks. While the greenback has been a star among currencies this year, UDN is setting up to be a winner among currency ETFs in 2019. "In the latest Reuters poll of more than 60 currency analysts, taken Nov. 28-Dec. 5, the dollar was forecast to be weaker against major currencies in a year," reports Reuters. "The greenback may also struggle to move much higher, given currency speculators' bets in favor of the dollar are the highest since December 2016, according to Commodity Futures Trading Commission data." ### WisdomTree Emerging Currency Strategy Fund (CEW) Expense Ratio: 0.55% Emerging markets stocks are not the only asset class in the developing world getting hammered this year. A primary reason why bonds and equities in emerging markets are flailing this year is the strong U.S. dollar, a scenario that has made the WisdomTree Emerging Currency Strategy Fund (NYSEARCA:CEW) a dog among currency ETFs. The Federal Reserve's 2018 rate tightening regime has punished nearly every currency ETF aside from the dollar bullish UUP, but if the Fed slows its pace of rate hikes next year or eliminates it altogether, currency ETFs such as CEW could benefit. Some market observers are already forecasting a 2019 rebound for emerging markets currencies. * 10 Top Stock Picks From the Street's Best Analysts "Goldman Sachs Asset Management expects to see improving economic conditions in emerging markets over the coming months, thus providing a springboard for the value of regional stocks and currencies," reports CNBC. ### Vanguard Total International Bond ETF (BNDX) Expense Ratio: 0.11% Vanguard is not a major player in currency ETFs, but one of its offerings on that front is worth considering for income investors. The Vanguard Total International Bond ETF (NASDAQ:BNDX) hedges currency risk by tracking the Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). The hedging strategy employed by BNDX is important because the more than 5,400 bonds held by this currency ETF are not denominated in dollars. This currency ETF's hedging strategy is proving less bad in 2018 as BNDX is down just 0.42%. Plus, this Vanguard fund is cheaper than 88% of rival funds, according to issuer data. BNDX's holdings have an average duration of 7.8 years and credit risk is minimal with this fund as approximately 83% of its holdings are rated between A and AAA. This currency ETF yields 2.27%. ### Xtrackers MSCI Europe Hedged Equity ETF (DBEU) Expense Ratio: 0.45% The Xtrackers MSCI Europe Hedged Equity ETF (NYSEARCA:DBEU) is a currency ETF that needs two things to happen to deliver for investors. As an equity-based currency hedged ETF, DBEU is likely to rise if the dollar remains strong against major European currencies while stocks in the region rise. That is not a far-flung scenario and it has happened before. Many of the largest companies residing in this currency ETF generate significant portions of their sales in the U.S. So if the dollar is strong, that benefits the companies as they convert dollars generated by U.S. sales back into euros, francs and pounds. * 7 Tech Stocks Without China Exposure DBEU includes exposure to stocks from Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. Consumer staples and healthcare stocks, two export-driven groups, combine for over a quarter of DBEU's weight. ### SPDR Long Dollar Gold Trust (GLDW) Expense Ratio: 0.50% Gold, like other commodities, is denominated in dollars. Typically, that is bad news when the dollar rises, but the SPDR Long Dollar Gold Trust (NYSEARCA:GLDW) is a currency ETF meets gold ETF that can help investors stay engaged with bullion, even when the dollar is moving higher. GLDW, which is nearly two years old, follows the Solactive GLD Long USD Gold Index. That index is "designed to represent the daily performance of a long position in physical gold and a short position in a basket ("the FX Basket") comprised of each of the Reference Currencies (i.e., a long USD exposure versus the FX Basket)," according to State Street. Currencies measured against the dollar within GLDW are the euro, Japanese yen, British pound sterling, Canadian dollar, Swedish krona and Swiss franc. Notably, this currency ETF earned its paycheck in 2018. While basic gold ETFs were down almost 3%, GLDW was up 3.61%. As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Downtrodden Stocks to Fish From the Bottom * 8 Cheap Value Stocks That Just Got More Enticing * 5 Apple Suppliers Hurt by the Guidance Cut Compare Brokers The post 5 Currency ETFs to Consider At the Start of 2019 appeared first on InvestorPlace.
Is Gold Ready to Fly in the New Year?(Continued from Prior Part)The US dollar and the Fed’s approach Like the Fed’s policies, the strong US dollar (UUP) impacted gold prices (GLD) this year. Key factors supporting the dollar this year were the Fed’s interest rate hikes and outlook, trade war concerns, and US markets’ (SPY) (QQQ) outperformance of other markets.
Bulls versus Bears on Wall Street: Time to Buy Gold in 2019? Unlike other banks, BNP Paribas has a negative bias for gold going into 2019. Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, is negative on gold (SGOL)(GLD) and other precious metals (JNUG) in 2019 and prefers holding Treasuries (TLT) to gold and silver.
Bank of America Merrill Lynch (BAML) is overweight on precious metals going into 2019. In its preview for 2019, BAML strategist Michael Widmer and his team noted that the market is close to extremely bearish on the metal. BAML uses four variables to forecast gold prices (GLD)(JNUG): the US dollar (UUP), US real interest rates (TLT), cross-asset volatility (VIX), and oil prices (USO).
Credit Suisse (CS) is positive about gold prices (IAU) in 2019. The bank expects gold prices to average $1,275 per ounce in 2019 and $1,300 in 2020.
For a large part of the year, gold prices (GLD) have languished due to a strong US dollar (UUP), hawkish Fed rate hike outlook, and rising equity markets. For the last few months, though, some of these factors seem to be reversing their course. Equity markets, for one, have remained quite fragile and volatile (VIX) since October. As of December 24, the S&P 500 (SPY), the Dow Jones Industrial Average (DIA), and the NASDAQ Composite (QQQ) have lost 18.9%, 16.1%, and 21.6%, respectively, since hitting their highs in mid-September.
For most of the year, gold prices (GLD) have languished, thanks to a strong US dollar (UUP), hawkish Fed rate hike outlook, and strength in the equity markets. For the last few months, though, some of these factors seem to be reversing course. Equity markets, for one, have remained quite fragile and volatile (VIX) since October.
For the better part of 2018, markets have been under the spell of technology stocks. And FAANGs were at the helm, bewildering investors with stunning earnings, but also shocking them with data breach scandals or disappointing guidance. Emerging markets have had a rough year. Turkey and Argentina were caught in a currency storm bot, seeing their notes sink abruptly. Aluminum and steel prices spiked on President Trump’s tariffs announcement, while oil reached four-year highs on Iran sanctions only to reverse on supply glut fears. Benchmark treasuries hit seven-year highs amid robust economic data and ultra-low unemployment. Last but not least, a refurbished NAFTA deal gave the U.S. administration an impulse to push further in its attempt to reduce the massive trade gap it holds with China. Check our previous trends edition at Trending: Soybeans Jump on US-China Trade Ceasefire.
In a report published on November 26, Goldman Sachs (GS) stated that commodities (COMT) could climb 17% in the coming months. It believes that commodities will escape a 2015-style price collapse. Among commodities, GS is particularly bullish on oil (USO), gold (GLD), and base metals (DBB). According to CNBC, Goldman Sachs said, “Given the size of dislocations in commodity pricing relative to fundamentals with oil now having joined metals in pricing below cost support, we believe commodities offer an extremely attractive entry point for longs in oil, gold and base.”
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.