|Bid||0.00 x 900|
|Ask||0.00 x 1200|
|Day's Range||49.93 - 49.95|
|52 Week Range||48.74 - 52.53|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.45%|
Duke University professor Campbell Harvey pioneered the inverted yield curve, which has been a reliable recession indicator in the past. It’s much more difficult to manage into a turning point,” said Harvey. Harvey’s research found that since 1950, an inverted yield curve between the 3- and 10-month curves have reliably forecasted a recession on seven different occasions.
A lot of talk in the capital markets is the exodus of growth strategies and the comeback of value, but Goldman Sachs is still touting growth, but with a unique twist--growth via equities that have the propensity for stable earnings. Within the last two years, the stable growers portfolio has been yielding 22% versus 16% for the S&P 500 and 1% for growth stocks. As the investors' wall of worry gets bigger, stable growth cuts out the market noise and refocuses on the fundamentals via earnings.
The first day of October gave investors news they might not want to hear, but serves as a warning that a rotation to defensive sectors could be the best move, which paves the way for a relative value exchange-traded fund (ETF) play for defensive equities over cyclical equities. U.S. manufacturing Purchasing Managers’ Index from the Institute for Supply Management showed 47.8% during the month of September, which is the lowest since June 2009. “We have now tariffed our way into a manufacturing recession in the U.S. and globally,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
The technology is already being tested by the Russian Navy, which is the first country to use hypersonic missiles. “The Russian Navy is expected to be the first country to field hypersonic cruise missiles on its submarines, potentially giving it some strategic advantages in naval warfare,” wrote Forbes contributor H I Sutton.
Soon after the quarter-point rate cut by the Federal Reserve, U.S. President Donald Trump took to Twitter for another round of central bank criticizing. This time, he tweeted that the Fed had “no guts, no sense, no vision” after what appeared to be a divided central bank on where to take interest rate policy in the future.
Amid trade wars and inverted yield curves, investors have been opting for defensive measures to combat market volatility, which could provide fodder to feed the Direxion MSCI Defensives Over Cyclicals ...
More than ever, investors need to get strategic as trade wars, inverted yield curves and fears of a global economic slowdown weighing on the minds of investors. There’s a plethora of options available ...
Defensive stocks and sectors have been thriving lately and with concerns mounting regarding the strength of growth stocks, investors may want to take advantage of strength in the former and weakness in ...
Safe haven investing has been the default play as market volatility descended upon the capital markets the last two months, but simply playing defense won't cut it when it comes to gains. Investors need to not only play defense, but play defense strategically given the current market landscape. “A lot of people are looking at those consumer staples stocks,” said Dave Nadig, managing director at ETF.com on CNBC’s “ETF Edge.” “I get nervous about leaning hard into consumer staples because the definition isn’t what we think it is.
As recession fears mount, growth stocks are increasingly vulnerable while defensive stocks offer added allure for investors wanting to remain engaged with equities. The Direxion MSCI Defensives Over Cyclicals ETF (RWDC) is an ETF for that theme. RWDC is part of a broader suite of relative weight products developed by Direxion.
Year-to-date, cyclical ETFs remain in the flow lead by over $1.37 billion even as both groups are now in outflows. Of course, this could change quickly.
Crude oil continued to decline Monday on concerns that the global economy would deteriorate further after President Donald Trump voided a tariff ceasefire with China. As a result, West Texas Intermediate Crude Oil dropped 7.9% to $53.95. WTI broke a 5-day winning streak with its worst daily performance in more than 4 years, with ETFs like the United States Oil Fund (USO) , the VelocityShares 3x Long Crude Oil ETN (UWT) , and the ProShares Ultra Bloomberg Crude Oil (UCO) following suit, down more than 6%, more than 18%, and more than 12.25% respectively.
Data company FactSet has been warning investors about an earnings recession in the S&P 500. This recession risk could put defensive sectors in concentrated focus as opposed to the more cyclical sectors, which provides an opportunity for relative weight exchange-traded funds (ETFs). It’s the primary driver for investors looking for a rate cut to help prop up the market, especially after a U.S.-China trade deal that was supposed to happen eventually fell through.
As the Federal Reserve gave capital markets reason to brace themselves for interest rate cuts this year, investors can vacillate on whether they should pour funds into cyclical or defensive sectors. Led by a strong performance by the materials sector, cyclical sectors took the lead over defensive sectors in June following a volatility-laden May. "The dynamic between Cyclical Sectors and Defensive Sectors continues to be interesting," a Direxion Investments Relative Weight Outlook post noted.
Through Schwab ETF OneSource™, Investors Have Commission-Free Access to Direxion Strategies Designed for Capital-Efficient Execution of Cyclical Views NEW YORK , July 9, 2019 /PRNewswire/ -- Direxion is ...
“A lot of people are focused on the 3,000 level which is human nature, it’s a big round number,” Miller Tabak equity strategist Matt Maley told CNBC’s “Trading Nation.” “But, the most important thing to look for is can it get a more meaningful break. Only time will tell how the historic index handles the 3000 level, but investors looking to participate in a perceived upside continuation can participate using broad market ETFs.
Despite the rampant news headlines, filled with trade war tensions, looming interest rate cuts, oil explosions, and war jitters with Iran, the markets have rallied steadily throughout the year, and volatility, as measured by the VIX, has remained on average in the 13-16 range, where it currently resides. Per Investopedia, “The Volatility Index, or VIX, is an index created by the Chicago Board Options Exchange (CBOE), which shows the market’s expectation of 30-day volatility. For stocks, measures of volatility typically refer to how certain equities perform over a longer period of time. Investors who are uneasy with increased stock market volatility might consider stocks with a history of consistent month-to-month performance.
The last time the S&P 500 had a first half of a year this good was at least 10 years ago. From consumer discretionary to technology, cyclical stocks that typically are tied to economic growth have yet to recover the ground lost in May, whereas only defensive groups like consumer staples and utilities have confirmed the S&P 500′s new highs, J.P. Morgan’s chart analyst Jason Hunter pointed out. This is not the way a solid, enduring rally should occur explains Hunter. “Rally leadership doesn’t inspire a lot of confidence yet ... In our view, that cross-market divergence can only persist for a short period of time, and the S&P 500 Index rally potential is limited under the current conditions,” Hunter said in a note on Tuesday.
Iran shot down an American spy drone near the opening to the Persian Gulf overnight, under debatable circumstances, escalating tensions in the region and driving oil prices higher on fears of a war. The price of US oil soared 6% above $57 a barrel. The United States promulgated plans earlier this week to send an additional 1,000 troops to the Middle East amid the rising tensions with Iran. US Secretary of State Mike Pompeo said Sunday that the United States is "considering a full range of options," including possible military options, although he underscored the fact that President Trump does not want to go to war with Iran.
As the capital markets are bracing themselves for interest rate cuts happening throughout the year, investors can vacillate on whether they should pour funds into cyclical or defensive sectors. With Direxion Investments' Relative Weight ETFs, investors can play both sides of the coin as a data-fueled central bank decides on interest rate policy. “Broad equity index performance after the start of Fed rate cuts depends on whether the economic slowdown was a soft patch or a more severe economic downturn,” wrote Maneesh Deshpande, head of U.S. equity strategy at Barclays, in a note last week.
During this time, it was defensive sectors that became the flavor of the month as investors sought to safe havens to shield them from the volatility. In its latest Relative Weight Outlook report, Direxion mentioned that "investors spent the month of May reducing exposure to both Cyclical and Defensive Sectors with $3.25 billion out of Cyclicals and $2.19 billion out of Defensives as ETF investors seemingly choose not to discriminate between either group. Cyclical and Defensive sectors have alternated leadership in flows on a monthly basis throughout the entire calendar year.
"Thanks to renewed risk-off sentiment, cyclical sectors have underperformed defensive sectors by 3.87% over the last month causing investors to once again fear that the market’s best days are behind are it," said the latest Direxion Relative Weight Spotlight report. RWDC seeks investment results that track the MSCI USA Defensive Sectors – USA Cyclical Sectors 150/50 Return Spread Index. The Index measures the performance of a portfolio that has 150% long exposure to the MSCI USA Defensive Sectors Index (the “Long Component”) and 50% short exposure to the MSCI USA Cyclical Sectors Index (the “Short Component”).
With oil ranking as one of 2019’s best-performing commodities, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the United States Brent Oil Fund (NYSEArca: ...
In addition to traditional safe havens like bonds and gold, investors sought names like McDonald's and Starbucks, which saw both rise 5.9 percent and 7.3 percent, respectively on Wednesday. With a U.S.-China trade deal already priced into the markets and subsequently getting burned when the markets took a dive the past week, investors are now looking for another trigger event–a rate cut–except the Federal Reserve passed on that notion and stayed put recently. “In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,” the Federal Open Market Committee’s policy statement read.
With a U.S.-China trade deal already priced into the markets, investors were looking for another trigger event--a rate cut--except the Federal Reserve passed on that notion and stayed put. "In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the Federal Open Market Committee's policy statement read. Fed Chairman Jerome Powell reiterated his ongoing message of patience as the wait-and-see approach by the central bank continues to persist.