|Bid||0.00 x 4000|
|Ask||0.00 x 2200|
|Day's Range||106.37 - 106.59|
|52 Week Range||103.94 - 108.57|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.04%|
Over the last decade, the ETF emerged as one of the most popular investment vehicles. “ETF” stands for exchange-traded fund, which is a type of security that tracks an index, bonds, commodities, currencies, ...
January BAML Survey: Fund Managers Bearish, but No Recession Yet(Continued from Prior Part)Concerns about corporate leverageAs reported by CNBC, according to the Bank of America Merrill Lynch survey for January, hedge fund managers’ chief concern
January BAML Survey: Fund Managers Bearish, but No Recession YetBAML survey and fund managersBAML (Bank of America Merrill Lynch) conducted a survey that polled 234 global investors with $645 billion in total assets under management between January
Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? (Continued from Prior Part) ## Gundlach speaks on Fed rates Speaking to CNBC in December 2018, Jeffrey Gundlach said of the Federal Reserve, “I think they shouldn’t raise [rates] this week. The bond market is basically saying, ‘Fed, you’ve got no way you should be raising interest rates.’” Gundlach added that the Fed shouldn’t have kept rates (AGG) so low for so long. The Fed not only raised the rate by 25 basis points on December 19, but it also signaled two rate hikes for 2019 and generally sounded more hawkish than expected. The markets tanked for days after the Fed scare. ## Gundlach: Fed erred After the hike, Gundlach told CNBC that Powell had made two mistakes during his news conference. The first was suggesting that quantitative tightening is on autopilot, which undermined investors’ confidence in the Fed being able to take proactive and flexible measures to support the economy. The second was talking too much about economic modeling. ## Fed versus markets On his January 8 webcast, Gundlach discussed the difference between the Fed’s tightening agenda as reflected in its dot plot and the market’s expectations. Gundlach highlighted that the market-implied rate hike probability fell after Powell mentioned that the Fed would be more patient with policy and would monitor the economy closely. As reported by zerohedge, he said that Powell “went from pragmatic Powell to Powell put and the markets have been throwing a party since then.” In the past few years, one of the factors fueling US equity markets (SPY) (QQQ) has been cheap money. The main concern for the markets about the Fed’s hawkish stance has been that the end of easy money could put the brakes on the economy. That’s why the signals of a more dovish Fed have pleased the markets. Read Why a Fed Policy Mistake Is Worrying Markets for more on this topic. Continue to Next Part Browse this series on Market Realist: * Part 1 - Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? * Part 2 - Jeffrey Gundlach: How to Survive the Market Zigzags in 2019 * Part 3 - Gundlach: Junk Bond Market Is Flashing Yellow on Recession
Dimon Says Market Overreacted and Predicts Decent Growth in 2019 ## Jamie Dimon thinks markets overreacted Jamie Dimon, the chair and CEO of JPMorgan Chase (JPM), believes that the recent market sell-off was an overreaction and there is no recession on the immediate horizon. During an interview with Fox Business on January 7, which was released today, he said the markets are overreacting to short-term sentiment around a whole bunch of complex issues. He, however, added that some of that was a “rational response” to concerns about slower growth, higher chances of recession, and trade conflict. ## Debt markets He mentioned that while the lack of deleveraging and the liquidation of the debt markets were mainly responsible for the US economy (IVV) (QQQ) getting into trouble in 2008, now we are facing a lack of bond issuance (HYG) (AGG). He added that in December as growth slowed down, people got scared and issuers didn’t issue, leading to widening credit spreads. He believes that this will change and is more of a normalization process after abnormally low spreads for a long time. December 2018 was the worst December for stocks since 1931. The major concerns plaguing the markets (SPY) include the ongoing US-China trade war, a possibility of monetary policy mistakes from the Fed, earnings (QQQ) deceleration, China’s (FXI) slowdown, and a potential global slowdown. ## Decent growth in 2019 Dimon also sounded optimistic about the other indicators for the US economy (DIA) such as a job market with more jobs and higher wages. He also thinks that consumer spending is also quite strong at this time. Apart from this, he thinks the Fed’s more accommodative response recently, strong earnings, and firm employment market would mean that America could see decent growth in 2019.
Wage growth will likely be the most closely watched component of the US (VOO) jobs report. While the other components of the jobs report have shown a firm labor market, wage growth has been a missing piece for a while. While wage growth had disappointed market participants for the last few months, November’s wage growth was more or less in-line with expectations.
Goldman Sachs (GS) turned positive on gold (GLD) for the first time in more than five years back in March. In a report published in March, GS cited an uptick in inflation and increased risk of a stock market correction as the major reasons for the bullish gold price view. This view from GS came despite its hawkish outlook on the Fed’s rate hikes. GS noted that rising volatility (VXX) and a potential for further sell-off in equities make them bullish on gold despite the higher interest rate outlook.
Bulls versus Bears on Wall Street: Time to Buy Gold in 2019? The head of Real Asset Strategy at Wells Fargo, John LaForge, is bullish on metals but feels that gold (GLD) may lag behind other precious metals in 2019 due to its high valuation compared to peers.
While talking to CNBC in September, Ray Dalio said that investors should get “more defensive” in the stock market, and warned that stocks’ upside looks limited. He added that the projected returns for stocks relative to cash and bonds (BND) look “sort of about right.”
As reported by CNBC, Ray Dalio feels that “the world by and large is leveraged long,” believing that the next bear market could be very painful as most are not prepared for it. At the Greenwich Economic Forum, Dalio said he doesn’t “think there’s much to protect investors” during a downturn. While Dalio didn’t explicitly call for a sharp downturn, he insisted that investors should have a “strategic asset allocation mix.
Mad Money host Jim Cramer has been feeling “powerless” lately. After the Fed’s 25-basis-point rate hike (AGG) and less-dovish-than-expected tone on December 19, Cramer said that Powell was ignoring “serious” weakness in the US economy. In This, Not the Rate Hike, Spooked the Markets Yesterday, we mentioned that the equity markets (IVV) tanked on December 19 after the rate hike and the Fed’s outlook, and it continued in free fall mode yesterday.
As a reminder, ETFs are simply a next-generation, low-cost, mutual fund with benefits such as tax efficiency and transparency. Sure, investors can buy and sell ETFs like stocks, but most ETFs are not traded in that way. Ultimately, these benefits allow for next-generation portfolio management solutions that arguably have the potential to offer retirement solutions that are different than the traditional market-cap weighted funds.
In the world of the exchange-traded fund (ETF) ecosystem, the market seemingly begins and ends with the ETF issuer. Summarily, the issuer is responsible for the creation and administration of the ETF. ...
In the world of exchange-traded funds (ETFs), sheer size can come in the form of market capitalization. With total ETF assets currently standing at over the $3 trillion mark, here are 10 of the biggest according to market capitalization, as of Dec. 20, 2018. 1. SPY seeks to provide investment results that correspond generally to the price and yield performance of the S&P 500® Index.
“Bond king” and DoubleLine CEO Jeffrey Gundlach has been quite vocal about the S&P 500 (SPY) heading for new lows. In Jeffrey Gundlach: S&P 500 Headed for More Lows, Fed Shouldn’t Hike, we highlighted why Gundlach believes the Fed shouldn’t have kept rates (AGG) so low for this long.
The Federal Reserve’s two-day meeting concluded yesterday. The Fed was widely expected to raise rates for the fourth time this year by 25 basis points, and it did. Lately, some doubts had crept into investors’ minds about whether Fed Chair Jerome Powell would go ahead with the hike given equity market weakness and increasing pressures from President Donald Trump and some well-regarded economists.
Another concerning statistic that came to light during the Bank of America Merrill Lynch’s Fund Manager Survey was that investors made the largest ever one-month rotation into bonds (BND). As reported by CNBC, the survey said, “Investors are approaching extreme bearishness…This month’s survey [found] the biggest ever one-month rotation into the asset class.” The bond allocations rose 23 percentage points to net 35% underweight, the highest allocation to bonds since the Brexit vote in June 2016. The allocation to bonds also rose amid a drop in inflation expectations.
BAML (Bank of America Merrill Lynch) conducted a survey that polled 243 global investors with $694 billion in total assets under management between December 7 and December 13. Initially, the markets were worried about the aggressive Federal Reserve rate hikes and the ongoing trade war. Fed Chair Jerome Powell sounded dovish during his address in late November, which calmed markets somewhat, but soon the sell-off resumed.
Goldman Sachs (GS) says that this year has proven to be an average one for major asset classes. Under such a scenario where all major asset classes have disappointed, GS expects more of the same except for cash. As reported by Barron’s, Goldman Sachs analysts led by David Kostin, said, “We forecast S&P 500 will generate a modest single-digit absolute return in 2019.
Talking to CNBC, “bond king” and DoubleLine CEO Jeffrey Gundlach said of the Federal Reserve, “I think they shouldn’t raise [rates] this week. Gundlach added that the Fed has shouldn’t have kept rates (AGG) so low for this long. As we highlighted in What Will the Fed’s December Meeting Mean for Markets?, the Fed is widely expected to raise the interest rates (BND) by 25 basis points at its December 18–19 meeting.
What Will the Fed’s December Meeting Mean for Markets? Among investment banks, Goldman Sachs (GS) and J.P. Morgan (JPM) are most aggressive on the Fed’s rate hike outlook for 2019. Earlier, GS’s chief economist, Jan Hatzius, was predicting four rate hikes from the Fed in 2019.