|Bid||27.61 x 1400|
|Ask||27.62 x 3200|
|Day's Range||27.39 - 28.12|
|52 Week Range||24.25 - 32.35|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-6.16%|
|Beta (5Y Monthly)||1.58|
|Expense Ratio (net)||0.35%|
The "Dodo Trade" is on … and it could be the most important influence on the global financial markets in 2020.If you get on the right side of this trade, the next 12 months could be very lucrative, even if the U.S. stock market goes nowhere. But if you wind up on the wrong side, you might end the year feeling like … well … a dodo.What's the Dodo Trade? The chart below provides a clue:InvestorPlace - Stock Market News, Stock Advice & Trading TipsSource: InvestorPlace "Dodo" stands for "dollar down," which is exactly what has been happening during the last three months. Although this downtrend is just getting underway, I expect it to gain momentum throughout 2020 and help power major rallies in precious metals and most other commodity markets. Death of the Dollar? Not Yet.To be clear, I am not predicting any sort of doomsday scenario that causes a major dollar implosion. Instead, I'm simply expecting the greenback to trend downward throughout the year and move toward the lows it hit in early 2018. * 9 Up-and-Coming Small-Cap Stocks to Watch The main rationale for this forecast is a simple one: No one really wants a strong dollar. It has become friendless -- both in the United States and overseas.Here at home, Federal Reserve Chairman Jerome Powell says he plans to hold interest rates low throughout 2020.As recently as one year ago, the members of Powell's Federal Open Market Committee were planning to raise rates above 3% in 2020. But the revised plan calls for holding rates at 1.75%. Clearly, the Fed is now pursuing an "easier" monetary policy than most investors had been expecting during the last several months.All else being equal, low interest rates promote dollar weakness … and commodity rallies.As it happens, President Donald Trump's administration also favors a weak dollar because that makes our exports more competitive.In addition to these monetary and political pressures on the dollar, a third factor is also weighing it down: Strengthening commodity prices. Most broad commodity price indexes have jumped double digits since August 2019. Generally speaking, rising commodity prices coincide with periods of dollar weakness, as the chart below shows.Source: InvestorPlace The inverse relationship between the dollar and commodities is easy to see. Whenever the dollar zigs lower, commodity prices tend to zag higher.During these episodes of simultaneous dollar weakness and commodity strength, you never really know which comes first: the weak-dollar "chicken" or the commodity-strength "egg." But whatever the exact cause or causes, the inverse relationship between these two assets is indisputable.In the current cycle, commodity strength seems like the most dominant influence. Investors aren't panicking to dump the dollar; they are simply tiptoeing away from it. But in the commodity markets, investors are buying with vigor and urgency.During the last four months, for example, the prices of numerous commodities have jumped 15% to 35% -- including gasoline, cotton, coffee, soybean oil, sugar and live hogs. The metals markets are also showing signs of strength, as copper, aluminum, gold and platinum are all trading near three-month highs.Perhaps these fresh signs of vitality in the commodity markets are a fluke, signifying nothing. But I wouldn't take that bet. Because the commodity market upswing aligns so closely with the U.S. dollar downswing, it is displaying classic signs of a major rally in the making.Furthermore, if we crawl around in the weeds of specific commodity markets, we can find solid reasons to expect higher prices. Generally speaking, supplies are constrained relative to demand. Welcome to BackwardationEven in the crude oil market, for example, we can find evidence of tight supplies. Although most folks believe the world to be "awash in oil," the futures markets are telling a different story. The crude market is in "backwardation," as are the markets for heating oil and natural gas.Backwardation means simply that near-month futures contracts are more expensive than ones in distant months. The typical pricing in crude futures is called "contango." That's when the closest-dated future is the cheapest and the most distant future is the most expensive. But when contango pricing flip-flops, or goes backward, the market is in backwardation. In the current case, the spot price of crude oil is $61.61 a barrel, while the contract for delivery one year from now is only $56.97.Source: InvestorPlace This somewhat rare configuration indicates that crude oil traders want their oil right now, not months from now. Not surprisingly, whenever traders want something right now, the price of that "something" tends to move higher. The crude market moved into backwardation decisively last August, which is also when the price of crude began trending higher.Interestingly, the energy markets are not the only ones in backwardation. So are the futures markets for thermal coal, palladium, zinc, and aluminum.These bullish signals from the futures markets are echoing signals from the stock market. Specifically, natural resources stocks are kicking into gear once again. Strength in ResourcesThe SPDR S&P Metals and Mining ETF (NYSEARCA:XME) has advanced 20% since August, while several individual stocks in that exchange-traded fund have jumped twice as much. These moves are just the beginning of much larger gains to come.Now that this bull market has taken fight, there's plenty of blue sky above it.Most major mining and resources stocks are still trading 70% below the highs they reached in 2011. In other words, even if these stocks tripled from their current levels, they would not reach their all-time highs! Further, from a valuation standpoint, resource stocks have never been cheaper than they are today.Source: InvestorPlace As the chart above shows, the valuation of the S&P Metals and Mining Index is nearly 70% lower than the valuation of the S&P 500. In raw numbers, the Metals and Mining Index is trading for less than four times gross earnings (EBITDA), while the S&P 500 is trading for more than 11 times EBITDA. Bottom LineThe commodity sector is a coiled spring that could produce shockingly strong results in 2020. The resource-related stocks I've recommended to my subscribers have achieved powerful market-beating results during the last few months. For example… * In June, I told my paid-up members that even if precious metals drift sideways for years, one large gold streaming and royalty company was positioned to make big gains. It's gone on to climb 21.3%. * At the same time, I recommended another gold and silver streamer and royalty company. I told them this company is a solid up-and-comer with the potential to quickly double or better. It hasn't done that -- yet -- but it has soared 82%. * Since recommending one mid-tier gold and silver miner, its shares have soared 40.5% in just a few months. Further, those shares just hit their highest levels since 2016 on New Year's Eve. * Finally, just over a year ago, I recommended a play on three of the world's largest and newest mining projects. It's gone on to soar 59.3%.But I'm expecting even larger gains over the next few months.And next week I'll show you the "Dodo Trade" stock that I think will make more gains than any other in 2020.Regards,Eric FryP.S. On the Friday morning following the U.S. airstrikes in Iraq, stock prices plummeted 300 points, while oil and gold prices surged. This is a turning point. The markets - and your money - will feel the impact. No matter what happens, every prudent person should be prepared for the worst.That's why I recently put together this presentation and wrote the book on market crash preparation: Bear Market 2020: The Survival Blueprint. I was one of the few analysts who predicted the last market crash in 2007-'08\. And now you can read all about the critical steps I'm saying every American should be taking by clicking here and viewing this presentation. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post This Trade Could Be the One Play to Make in 2020 appeared first on InvestorPlace.
The VanEck Vectors Steel ETF (SLX) was trading higher early Monday after President Trump took to Twitter to announce that he's renewing tariffs on imported steel from Argentina and Brazil. SLX tries to reflect the performance of the NYSE Arca Steel Index, which follows global companies involved in the steel industry. Early in his presidency, Trump enacted tariffs aimed at supporting domestic steelmakers, a move that sent SLX higher by 24.5% in 2017.
Copper has been a laggard in the metals complex this year, but the iPath Series B Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC) is coming off a strong October and there are inklings that rally ...
The iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC A) jumped nearly 5% in October, good for one of the best performances among industrial metals exchange traded products, but investors may want to be careful about joining the copper party right now.
The iPath Series B Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC) jumped nearly 5% in October, good for one of the best performances among industrial metals exchange traded products, but investors ...
The global copper market is experiencing a supply deficit, which, in theory, should boost prices of the red industrial metal. However, the reality is that the iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC A) may need more help than just supply shortfalls.
The global copper market is experiencing a supply deficit, which, in theory, should boost prices of the red industrial metal. However, the reality is that the iPath Series B Bloomberg Copper Subindex Total ...
The iPath Series B Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC) has recently posted some modest upside, rising about 2% over the past week, but the copper exchange traded note (ETN) remains ...
Traders are always on the lookout for the next short squeeze candidate. Short squeezes can send share prices skyrocketing in a matter of minutes and hours, and traders who are along for the ride can make ...
Coming off a rough August in which it lost 6.40%, the SPDR Metals & Mining ETF (NYSEArca: XME), which is designed to track the broad metals and mining segment, could face more challenges in September, ...
The previously downtrodden SPDR Metals & Mining ETF (NYSEArca: XME), which is designed to track the broad metals and mining segment, got a lift Monday, but investors should approach this volatile ETF with ...
Copper has made for a predictable victim in the US/China trade tiff. The iPath Series B Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC) is lower by 4.21% this month, but there could be some ...
Amid the fretting capital markets following an escalation of the U.S.-China trade war, copper exchange-traded products (ETPs) took a hit, which doesn’t bode well since the metal is seen a barometer of economic health. The iPath Series B Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC) is down 4.85 percent the last five days and the United States Copper Index Fund, LP (CPER) is also down 5 percent. Copper futures hit a bottom-barrel two-year low on Monday as chaos was ensuing in equities, which was evidenced by the fall in Dow Jones Industrial Average of over 950 points—the largest decline of 2019. Due to copper’s widespread use, particularly when it comes to homebuilding and commercial construction, it’s a good measuring stick of how well the economy is doing.
Here is a look at ETFs that currently offer attractive short selling opportunities. The ETFs included in this list are rated as sell candidates for two reasons. First, each of these funds is deemed to be in a downtrend based on the fact that its 50-day moving average is below its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading above its 20-day moving average, thereby offering a near-term 'sell on the pop' opportunity given the longer-term downtrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
There are 11 sectors represented in the S&P 500 with weights ranging from 2.81% at the bottom to 21.45% at the top. Guess which group resides at the bottom? Materials.That is not the only point underscoring the materials sector's diminutive status. The Materials Select Sector SPDR ETF (NYSEARCA:XLB), the largest materials exchange-traded fund, holds just 28 stocks and the Dow Jones Industrial Average is home to just one materials stock -- Dow Inc. (NYSE:DOW).XLB "seeks to provide precise exposure to companies in the chemical, construction material, containers and packaging, metals and mining, and paper and forest products industries," according to State Street.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSize aside, there are plenty of opportunities to be had with materials ETFs and investors may want to consider getting in while the getting is good because the sector is on fire in the first half of June."In fact, the materials group, the sector that tends to be the most sensitive to global economic growth expectations, is on track for its best monthly gain since October of 2015, when it soared 13.45%, according to Dow Jones Market Data," reports MarketWatch. * 7 Top-Rated Biotech Stocks to Invest In Today For investors looking to embrace a small sector with big potential, here are some materials ETFs to consider. VanEck Vectors Junior Gold Miners ETF (GDXJ)Source: Shutterstock Expense Ratio: 0.53%, or $53 annually per $10,000 investedThe VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) is one of the largest gold miners funds, meaning it is also a materials ETF and a volatile one at that. GDXJ has a three-year standard deviation of 30.50%, roughly triple the comparable metric on the S&P 500. Indeed, this materials ETF is not for the faint of heart and it has a tendency to overshoot gold's price action in either direction.Fortunately, the current climate sets up well for gold, as highlighted by GDXJ's month-to-date gain of nearly 9%."If you look at the GDXJ [VanEck Vectors Junior Gold Miners ETF] and go back to 2010, the adjusted return in Canadian dollars is down about 85%. Then if you look deeper … at the really junior juniors, which aren't even in these ETFs, it's even more so. We have an industry where you've lost 80% to 90% of the value -- plus," said Jonathan Goodman, executive chairman of Dundee Corp., in an interview with Kitco News.Another catalyst could boost this materials ETF in the second half of the 2019: the Federal Reserve. If the Fed lowers interest rates, gold almost certainly rallies in response, likely sending GDXJ and miners ETFs higher along the way. Invesco MSCI Global Timber ETF (CUT)Source: Shutterstock Expense Ratio: 0.55%Among materials ETFs, timber funds -- all two of them -- often go overlooked. The Invesco MSCI Global Timber ETF (NYSEARCA:CUT), which tracks the MSCI ACWI IMI Timber Select Capped Index, gives investors nuanced materials exposure with a decent yield.CUT's underlying index "measures the performance of securities engaged in the ownership and management of forests, timberlands and production of products using timber as raw materials," according to Invesco.CUT holds 77 stocks, giving it a significantly larger roster than many traditional materials ETFs and some of that size is attributable to the fund being a global materials ETF. Eleven countries are represented in this materials ETF with the U.S. commanding a weight of 42%. Of the other 10 countries found in this materials ETF, eight are developed markets. * The 10 Best Index Funds to Buy and Hold Nearly 56% of CUT's components are classified as value stocks and the materials ETF reflects that value proposition with a price-to-earnings ratio of just 12.82x, a healthy discount relative to broader domestic equity benchmarks. SPDR S&P Mining & Materials ETF (XME)Source: Shutterstock Expense Ratio: 0.35%The SPDR S&P Mining & Materials ETF (NYSEARCA:XME) is an equal-weight materials ETF with diverse exposure to miners of several industrial and precious metals.XME's underlying index provides exposure to "the following sub-industries: Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel," according to State Street.In other words, XME is exactly the type of fund that can be stung by tariffs. That is exactly what has happened to this materials ETF. XME is down 11.41% in the second quarter and resides more than 31% below its 52-week high, putting the fund deeply into a bear market.XME is also volatile as far as materials ETFs are concerned. Over the past three years, XME's annualized volatility is 26.20% compared to 15.60% for the aforementioned XLB. Problem is, XME often does not justify that increased volatility because it can trail traditional materials ETFs by wide margins.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post 3 Materials ETFs to Help Build Your Portfolio appeared first on InvestorPlace.
As an asset class, economically sensitive commodities made for predictable victims of the US/China trade flap. That is certainly true of copper. Just look at the iPath Series B Bloomberg Copper Subindex ...
The iPath Series B Bloomberg Copper Subindex Total Return ETF (JJC) is sporting a second-quarter loss of 10% as a slew of weaker-than-expected global economic data points are pressuring copper. Most copper ...
This article was originally published on ETFTrends.com. Copper was the first metal to be worked by people. Copper beads have been excavated in northern Iraq which are more than ten thousand years old, and presumably made from native copper, nuggets of which can sometimes still be uncovered. Copper is an essential component in the motors, wiring, radiators, connectors, brakes, and bearings used in cars and trucks.
Miners Approach 52-Week Lows as Trade War Heat IntensifiesMiners’ returns todayUS equity markets are in the red today amid the escalation in the US-China trade war. Metals and mining stocks have especially come under pressure, and the SPDR