|Bid||0.00 x 1100|
|Ask||122.20 x 4000|
|Day's Range||121.02 - 121.51|
|52 Week Range||111.06 - 129.51|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-0.05|
|Expense Ratio (net)||0.40%|
President Trump in comments Saturday said stock-rallying reports this week that trade talks with China would include the lifting of tariffs against the world's second-largest economy weren't true. The president referred to those tariffs as "sanctions" on Saturday. "Things are going very well with China and with trade," he said to reporters. "There were some false reports about sanctions being removed. We have taken in tremendous amounts of money into the United States because of the sanctions and we'll see how it goes. And if we make a deal, certainly we wouldn't have sanctions...," he said, expressing general optimism for progress. The Wall Street Journal reported Thursday, citing people familiar with the matter, that the idea of lifting tariffs in part or whole was proposed by Treasury Secretary Steven Mnuchin in a series of strategy meetings. The report added that U.S. Trade Representative Robert Lighthizer is concerned that any concession could be seen as a sign of weakness, however. Trade issues have been cited as the biggest headwind for stocks rallying in 2019 and the reported tariff removal pushed stock averages to session highs Thursday when the headlines hit.
Commodities like agricultural goods and precious metals offer investors an alternative to divest their holdings. Often times, commodities march to the beat of their own drum compared to the broad market. ...
In January, ProShares changed its silver and gold ETFs to track futures-based indexes. This marks the first time leveraged and inverse ETFs will benchmark to gold and silver futures prices. ) are changing their benchmarks from the LBMA (London Bullion Market Association) silver and gold auction prices to Bloomberg Commodity Subindexes.
Could the Newmont-Goldcorp Merger Form ‘The Go-To Gold Equity’?(Continued from Prior Part)Newmont’s and Goldcorp’s valuation Among senior miners (GDX), Newmont Mining (NEM) has the highest EV1-to-EBITDA multiple, 8.2x, which is 2% lower
With the government shutdown now in its fourth week (the longest ever) and 800,000 federal workers on furlough, the risk of recession has increased significantly.
Could the Newmont-Goldcorp Merger Form ‘The Go-To Gold Equity’?(Continued from Prior Part)Focused on value Newmont Mining (NEM) and Goldcorp (GG) held a conference call on January 14 to brief investors and analysts on their merger. The
Could the Newmont-Goldcorp Merger Form ‘The Go-To Gold Equity’?(Continued from Prior Part)Agnico Eagle MinesWhereas several gold (GLD) mining companies are likely to see M&As (mergers and acquisitions), Agnico Eagle Mines (AEM) may not be
"In the long run, we believe that palladium will continue to benefit from exceptionally strong supply/demand, resulting in yet higher prices," said George Gero, managing director at RBC Wealth Management. PALL rose 2.47 percent while GLD gained 0.33 percent. PALL is trading well above its 200-day moving average as the price of palladium bested gold for the first time in 16 years during the month of December.
The recent breakouts beyond key resistance levels on the charts used to follow the precious metals market suggest that prices are headed higher.
Bulls versus Bears: Who Will Rule the Stock Markets in 2019?(Continued from Prior Part)Goldman Sachs’ S&P 500 target As of December 14, Goldman Sachs’ (GS) chief equity strategist, David Kostin, expects the S&P 500 (SPY) to reach 3,000 by
Newmont and Goldcorp Merger to Create World’s Leading Gold Miner ## Newmont-Goldcorp merger Today, Newmont Mining (NEM) and Goldcorp (GG) announced that they have entered an agreement in which NEM will acquire all of the outstanding shares of Goldcorp in a stock-for-stock transaction valued at $10 billion. Newmont will acquire each share of Goldcorp in exchange for 0.3280 NEM shares, which represents a premium of 17% based on the companies’ 20-day volume weighted average stock prices. ## Sector-leading gold combination Newmont Goldcorp’s reserves will be among the largest in the gold sector (GDX) (GDXJ). Moreover, the combined entity is targeting $1.0 billion–$1.5 billion in divestitures over the next two years to optimize gold (GLD) production at a sustainable rate. As per the press release, “In addition to providing shareholders the largest gold Reserves per share, Newmont Goldcorp will offer the highest annual dividend among senior gold producers.” ## Following Barrick-Randgold merger This transaction comes on the heels of the merger of Barrick Gold (GOLD) with Randgold Resources, which was completed on January 2, 2019. On September 24, Barrick Gold agreed to acquire Randgold Resources in a share-for-share deal. The merger created a sector-leading gold company, which owns five of the industry’s top ten Tier 1 gold assets. The combined entity has a market cap of ~$23.75 billion. It will also have the largest gold reserves among its senior gold peers (GDX) (NUGT). You can read Is Barrick Worth a Look after Its Merger with Randgold? for more details about the merger.
Jim Cramer Suggests Nervous Investors Buy Gold Now ## Cramer suggests adding gold Mad Money host Jim Cramer is advising investors to invest in gold (IAU) if they’re concerned about the Fed’s interest rate policy and the trade conflict between the US (SPY) (IVV) and China (FXI). Cramer said, “If you’re looking for an insurance policy against volatility and economic uncertainty, gold is a great way to go.” He added, “While I like the stock market here, as you know, now that the Fed has decided to be more patient, the whole point of diversification is to be prepared in case something goes wrong … and your thesis doesn’t pan out.” Read Bulls versus Bears on Wall Street: Time to Buy Gold in 2019? for major analysts’ take on the gold price outlook in 2019. ## What should investors buy? However, Cramer doesn’t recommend buying the actual metal. Instead, he recommends direct exposure through the SPDR Gold Shares (GLD), which is the largest gold-backed ETF. He thinks that GLD and other gold mining ETFs (GDX) (NUGT) reduce risk and inconvenience. In addition to GLD, Cramer also recommends a high-quality gold producer like Barrick Gold (GOLD). Recently, Barrick Gold and Randgold Resources’ merger was finalized, which canceled Randgold’s London listing. ## Barrick-Randgold merger created a mining behemoth Regarding the Barrick Gold and Randgold Resources merger, Cramer likes the merged company. He said, “The company has the lowest total cash costs among its peers — I like that — [and] it has a nicely diversified portfolio of assets across the world — I love that.” Read Is Barrick Worth a Look after Its Merger with Randgold? for more details on the new company’s operating metrics and its outlook after the merger.
Futures Tank on China Trade, Gold Climbs Stock futures are getting grumpy over China again, which showed trade data being lower than investors wanted. Dow futures are down over 200 points, the Nasdaq down 66, or about 1%. Gold (NYSEARCA:GLD) has jumped on the news, passing $1,294 and testing $1,300 again, though silver (NYSEARCA:SLV) isn’t […] The post Market Morning: Brexit Deal Downfall, Newmont Buys Goldcorp, PG&E CEO Bails appeared first on Market Exclusive.
Gold futures climb Friday, finishing modestly higher for the week, on the back of overall weakness for the dollar and a retreat in benchmark U.S. stock indexes.
Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? As per Reuters, Gundlach said, “There’s potential for that here. As reported by CNBC, Morgan Stanley equity strategist Michael Wilson said in November that buying the dip isn’t working for the first time in 16 years.
The tail end of 2018 didn't shape up to be great for the investing public. The markets -- down 6%-plus for the full year -- fell into a turmoil and it looked as if the bulls were finally rolling over into a big bear market. Stocks, commodities and other risk assets tanked as global growth worries moved to the forefront of many investors' minds. At the time of writing, the S&P 500 is now roughly 12% below its recent September highs, while the tech-heavy Nasdaq is down around 14% from its recent peaks. But just as it looked like the markets' woes could spill over into the New Year, the market got its Santa Claus rally after all. From Dec. 24 to Dec. 31, the S&P jumped 6.6% while the Nasdaq gained 7%. Year-to-date so far, the S&P is up another 3%. The Nasdaq, 4.4%. That doesn't mean that the bear market is over. Far from it. This is a great time to strengthen your portfolio's diversity, introducing a number of defensive stocks to batten down the hatches in case more dark clouds roll over the horizon. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Luckily, exchange-traded funds (ETFs) make shifting portfolio strategy a breeze. By using ETFs, investors can add a dose of safety to their portfolios and potentially save themselves some losses as the bear takes over. Moreover, they can do it quickly with one ticker access. There's no major selling or buying with ETFs. That makes using them the perfect way to hedge a portfolio. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors With that, here are three defensive ETFs to buy right now to limit a potentially elongated bear market's growl. Source: Shutterstock ### Invesco Defensive Equity ETF (DEF) Expense Ratio: 0.60%, or $60 per $10,000 invested One of the oldest and most successful ETFs providing safety to portfolios is the $165 million Invesco Defensive Equity ETF (NYSEARCA:DEF). Heck, it even has "defense" as part of its name. The key to that defense comes down t its underlying construction. DEF tracks the Invesco Defensive Equity Index. That benchmark combs through the universe of large-cap stocks and finds those superior risk-return profiles during periods of stock market weakness as well as offer gains during bear markets. The basic underlying idea is to create a portfolio of stocks that should hold up- or at least fall a lot less than the broader market- when things get dicey. The ETF currently holds 100 different stocks- with its top holdings reading like a who's who of America's "bedrock" stocks, including drugmaker Eli Lilly & Co (NYSE:LLY) and consumer products firm Hormel Foods (NYSE:HRL). Stocks in the ETF are equally weighted so that investors can gain the most from each holding's defensive nature. Healthcare stocks make up around 20% of the portfolio, while industrials and tech make much around 15% of assets each. As far as performance goes, DEF has been one of the better defensive ETFs around. During market troubles, the fund has managed to hold its own. Considering 2018's performance, DEF has managed to beat the S&P 500. That outperformance should continue next year as the market drifts lower. ### Defensive ETFs To Buy Today: iShares Select Dividend ETF (DVY) Expense Ratio: 0.39% Investors often forget one of the best ways to score some great defense is through firms that pay hefty dividends. After all, making a few percentage points in yield can mean the difference between a loss and gain at the end of the day during drifting and sinking markets. More importantly, reinvested dividends can propel an overall position that much higher as prices rebound. Dividend ETFs such as the iShares Select Dividend ETF (NYSEARCA:DVY) make it easy to add a dose of dividends to a portfolio. DVY can be seen as a "catch-all" fund when it comes to dividend ETFs. The ETFs underlying index -- Dow Jones U.S. Select Dividend Index -- looks at U.S. stocks that have long histories of paying dividends as well as high yields. This allows investors to score a high yield today as well as one that will last the test of time. That's perfect for today's low return environment. The more pennies you can pick-up today, the better. And while the idea of "high yield" may sound scary, investors shouldn't fret. DVY's top holdings are not fly-by-night names. Pfizer (NYSE:PFE) and utility Dominion Energy (NYSE:D) are some of the stalwarts dotting its top-holdings. Those stalwarts and its remaining holdings help produce a tasty 3.51% yield. * Morgan Stanley: 7 Risky Stocks to Sell Now All in all, dividends can help boost a portfolios defense and DVY could be one of the best ETFs to get that exposure. ### SPDR Gold Shares (GLD) Expense Ratio: 0.40% When the going gets tough, investor's flock to gold. That relationship has been tested time and time again. And lately, the various gold ETFs are continuing the trend. Gold prices have spiked in recent weeks as the market has sputtered and finished December at six-month highs. And if you remember, six months ago was the last time the market had a slight meltdown. Because of this, gold ETFs could be one of the best ways to kind of hedge the upcoming storm in the year ahead. And you can't get much better than the SPDR Gold Shares (NYSEARCA:GLD). The $33.5 billion GLD is one of the largest ETFs in the world and is the behemoth among the gold ETFs. The fund doesn't use futures to get its gold exposure but owns physical bullion stored in a vault on behalf of investors. That keeps GLD's share price closely mirroring what is happening in the gold market. Each share of the ETF represents a 10th of an ounce of gold. So, buy 10 shares and you have an ounce of physical gold in your portfolio. This makes the GLD one of the easiest ways to add exposure to the asset class. There's no need to pay exorbitant fees to own gold and gain from its hedging abilities. In fact, GLD costs a cheap 0.40% in expenses. Given the markets current state, adding a touch of gold could be one of the best defenses around. At the time of writing, Aaron Levitt did not have an exposure to any ETF or stock listed. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 3 Defensive ETFs to Protect Yourself From Another Market Selloff appeared first on InvestorPlace.
Gold futures finish lower after failing to overcome resistance at $1,300 an ounce, but remain on track for a modest weekly gain as a result of overall weakness in the dollar.
Pretty, isn’t it? Actually it is pretty ugly. Starting in December of 2007, the S&P 500 (SPY) was down a whopping 54% (yellow line) 16 months later when it bottomed in March 2009. The Nasdaq (QQQ) actually fared better during the time frame down only 48% (red line). Oil (USO) clearly did the worst down 60% in the time frame (blue line). The only thing that did well was Gold (GLD) up 18% during the time (orange line). So when people encourage you to buy gold to be defensive, that may actually work. But what about the “defensive” equities? Look, I have no idea if we are headed into a real downturn (economically) or not, just don’t listen to people telling you to shift your portfolio to defensive names. No one get rich losing 30-40% on names like this. Either sit it out, learn to short, or buy some gold. But remember advice you hear is often to help hedge funds and mutual funds “outperform”. But in a real downturn, you won’t feel better outperforming if you lose 20% less than everyone else, because you will still lose.
Not many asset classes performed well in 2018, but gold managed to escape with only about a 1% loss -- and the charts tell me it could shine even more brightly in 2019. After all, a 1% drop for 2018 was actually pretty decent considering the fact that gold had a massive swoon over the summer, down more than 10% at one point.
Physically backed gold exchange traded fund saw holdings surge on increased investment demand as investors looked to safeguard their assets in a year marked by heightened volatility. According to the World ...
Gold-backed exchange traded products, including the SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and Aberdeen Standard Phys SwissGold Shr ETF (NYSEArca: SGOL), were pinched by the ...
How Ray Dalio Beat the Market and Peers in 2018 (Continued from Prior Part) ## Not “long” any particular asset So, what is it exactly that helped Ray Dalio’s Bridgewater Associates beat the market and peers in 2018? The answer probably lies in the way the fund is designed. Most of the market suffered huge losses in the last quarter of 2018 as equities fell. Bridgewater, however, was having its typical year due to its design, wherein it isn’t usually long on any particular asset. ## Bridgewater’s positioning In a telephone interview with Reuters in December, Greg Johnson, co-chief investment officer of Bridgewater Associates, mentioned, “We are bearish on equities but it’s a part of a diversified set of conditions across asset classes. That process has allowed us to have our alpha be uncorrelated over time to equity markets.” He added, “We do equally well as equity markets go up or equity markets go down. So, we are having a normal year this year – as good as our typical year – and that is a function of the design of our alpha … we don’t have any tendency to be long any particular asset.” ## Bridgewater’s holdings A lot of hedge fund managers got burned, as they had outsized positions in a few stocks and a lot of them had it in the over-owned tech (QQQ) space. Dalio’s holdings are mostly concentrated in a small number of positions with most of its largest stakes in ETFs. Its top ten holdings form 71% of its total portfolio. At the end of Q3 2018, its five largest holdings were: * the SPDR S&P 500 Trust ETF (SPY): 23.6% * the Vanguard FTSE Emerging Markets ETF (VWO): 21.6% * the iShares Core MSCI Emerging Markets ETF (IEMG): 6.1% * the SPDR Gold Shares ETF (GLD): 4.6% * the iShares MSCI Emerging Markets ETF (EEM): 3.5% Apart from this, Dalio’s strategy of having a “strategic asset allocation mix,” or having a neutral portfolio during an overall period and then figuring out where there is alpha, could also have helped Dalio beat the market. Continue to Next Part Browse this series on Market Realist: * Part 1 - Ray Dalio’s Bridgewater Is Rare Bright Spot in Market Rout * Part 2 - Did Ray Dalio’s Bearish Stance on Markets Help? * Part 4 - Ray Dalio’s Advice Is to ‘Go Counter-Cyclical’
Is Barrick Worth a Look after Its Merger with Randgold? (Continued from Prior Part) ## Valuation Among senior miners (GDX), Barrick (GOLD) has the second-highest EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 6.6x, which represents a premium of 1% to its historical multiple. Its multiple has rerated since its announcement of its merger with Randgold Resources (GOLD) to form an industry-leading gold company (SGDM) with the greatest concentration of Tier 1 gold (GLD) assets. Since the announcement of the merger, GOLD’s multiple has expanded 18.5%. Among its peers, Newmont Mining (NEM), Goldcorp (GG), and Kinross Gold (KGC) are trading at multiples of 8.2x, 6.2x, and 4.9x, respectively. ## Catalysts As we discussed in Is the Barrick-Randgold Merger Enough of a Reason to Bet on ABX? Barrick’s costs are expected to fall, and its production profile is expected to improve on low-cost, high-quality assets after the merger. Since it owns five of the top ten Tier 1 assets in the world, its unit costs are expected to be significantly lower than its peers’. However, its new position will also add to its geopolitical risk. ## Problems to overcome Most of Randgold’s operations are in Africa. Due to many African countries’ rising resource nationalism and ambition to secure bigger shares in mining activities, many mining companies are facing difficult times operating in these jurisdictions. Political problems in these countries could add to Barrick’s operational risks. In addition, market participants worry that the working styles of John Thornton, the new company’s executive chair, and Mark Bristow, its CEO, will clash, leading to problems for the company down the line. As we discussed earlier in the series, the resolution of the company’s dispute with the Tanzanian government could be another major catalyst for its stock. To achieve further upside, the company will need to show more execution on its projects and resolve its disputes successfully. Browse this series on Market Realist: * Part 1 - Is Barrick Worth a Look after Its Merger with Randgold? * Part 2 - Will the GOLD Merger Expedite the Tanzania Dispute’s Resolution? * Part 3 - Barrick Could Emerge Leaner and Stronger after an Asset Review