|Bid||53.27 x 800|
|Ask||53.30 x 1300|
|Day's Range||53.13 - 53.13|
|52 Week Range||47.83 - 54.22|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.55%|
The markets, at times, exhibit uneven performances, and investors have been able to capitalize on the disparate returns in varying segments through ETFs that incorporate a relative weight strategy.
U.S. President Donald Trump said he’s not in a rush to force a trade deal with China while the capital markets were expecting a deal completed by December. “I don’t think it would cause a big swing one way or another,” said Art Cashin of UBS. U.S. equities could be lifted by news that talks between Trump and Chinese president Xi Jinping are ongoing.
U.S. equities are ending the year with record highs in the major indexes like the Nasdaq Composite and S&P 500, but December could end up being the proverbial cherry on top, which could make it a month to remember to end a strong 2019. The S&P is up 1.6% on average.
U.S. Gross domestic product (GDP) grew at a 2.1% annual pace in the third quarter, which came out higher than the anticipated 1.9%, but business investment languished with nonresidential fixed investment falling by 2.7%. Will those hold back U.S. equities? "Slowing investment is mainly due to heightened uncertainty over the future direction of US trade policy, as well as slowing external demand amid a cooling of the global economy," said Agathe Demarais, the global forecasting director at the Economist Intelligence Unit.
Whether it’s trade wars, an impeachment charge against U.S. President Donald Trump and other market concerns, CNBC’s “Mad Money” host Jim Cramer doesn’t foresee anything that will get in the way of more stock market gains—a potential opportunity to play the Direxion FTSE Russell US Over International ETF (RWUI) . In particular, Cramer doesn’t foresee the big chain retailers in a world of hurt. “The big guys in retail are doing just fine. Walmart, Target, Amazon, Costco simply haven’t felt the pain,” the “Mad Money” Cramer said.
The S&P 500 and Nasdaq Composite rallied to new highs to begin the shortened trading week ahead of Thanksgiving, but can the rally sustain itself through the rest of 2019? Trade war pessimism and recession fears may be offering gloomy forecasts for U.S. equities in 2020, but global investment firm Goldman Sachs is painting a more positive picture.
In Direxion Investments' latest Relative Weight Spotlight, investors looked to add more international exposure as ETFs from abroad took in more capital in the month of October. "Notably, ETF investors continue to play defense in the aggregate as fixed income ETFs continue to take in the lion’s share of flows compared to equity ETFs," the post said. For example, after outperforming for two months, investors added more capital to international developed markets compared to U.S. exposures.
All three major indexes have reached record highs recently with the Nasdaq Composite being the most recent as it rode the strength of tech-focused equities to a new high in Tuesday's trading session. All this creates an opportunity for investors to capitalize on the Direxion FTSE Russell US Over International ETF (RWUI) .
Trade war pessimism and recession fears may be offering gloomy forecasts for U.S. equities in 2020, but global investment firm Goldman Sachs is painting a more positive picture. “The equity market is anticipating an acceleration in US economic growth during the coming months,” said David Kostin, Goldman’s chief U.S. equity. The markets have been in flux on trade war news.
The markets are riding a tailwind of positive news from White House Economic Adviser Larry Kudlow saying that the U.S. and China are close to striking a trade deal. “Given all of those positives, I think that is unreasonable to expect that we’re going to continue to have the kind of momentum that we’ve had of late,” said Michael Yoshikami, CEO and founder of Destination Wealth Management. For investors who are bullish on international equities outperforming U.S. equities, this sets up a play for relative weight ETFs.
Major U.S. indexes are roaring to new highs with the S&P 500 and Dow Jones Industrial Average feeding off strength in the market optimism from a U.S.-China trade deal. Whether emerging or developed, international markets have been trailing U.S. equities in the past 10 years, but the tide could finally be turning. “International stocks, both in emerging markets and developed markets, have significantly underperformed U.S. stocks over the past decade,” wrote Andres Cardenal in Seeking Alpha.
The champagne has been popping in U.S. equities after the Dow Jones Industrial Average and S&P 500 rallied to new highs, but the bartender may be announcing the last call sooner than investors think. A gloomy earnings outlook could tamp down gains for U.S. equities moving forward from a better-than-anticipated third quarter. According to a CNBC report, companies comprising the S&P 500 “now expect to grow their earnings by less than 1% year over year, compared with a 23% growth rate just 14 months ago, the bank pointed out.
As U.S.-China trade deal negotiations were unraveling, yield curves inverting and investors were piling into bonds, it didn't seem long ago that recession talks were swirling in the capital markets. What a difference a season makes--fall arrives and now U.S. equities are extending their gains with the S&P 500 reaching a new high. Some analysts feel investors can sense that the good times are fleeting, but the market could be saying something else.
The markets cheered a rate cut to end Wednesday’s session, but were greeted to red indexes on Thursday as the outlook for a long-term U.S.-China trade deal turned gloomy on Halloween. Despite better-than-expected ...
All this creates an opportunity for investors to capitalize on the Direxion FTSE Russell US Over International ETF (RWUI) . After high level telephone discussions, the U.S. and China are “close to finalizing” parts of the initial trade agreement agreed upon by the two largest economies on Oct. 11. According to a CNBC report, a U.S. Trade Representative said these talks would continue.
Inverted yield curves from the bond market, a reliable recession indicator, could be a sign and the ballooning budget deficit could be another, which could hurt U.S. equities in the long run. "The U.S. government’s budget deficit ballooned to nearly $1 trillion in 2019, the Treasury Department announced Friday, as the United States’ fiscal imbalance widened for a fourth consecutive year despite a sustained run of economic growth," a Washington Post report said. "The country’s worsening fiscal picture runs in sharp contrast to President Trump’s campaign promise to eliminate the federal debt within eight years," the report added.
Investors aren't the only ones looking closely at the U.S.-China trade war as the world authority on finances, the International Monetary Fund (IMF), is keeping a close watch on negotiations. If the trade war remains unresolved, the IMF is predicting that global growth will decline to its lowest level since the financial crisis in 2008. Per the IMF's most recent World Economic Outlook projection, it reveals that 2019 GDP will grow at a rate of 3.0%, which is less than the 3.2% projection in July.
The “R” word, recession, is the one capital markets don’t like to hear when it comes to financial industry vernacular, but how does one determine whether we’re in a recession or not? The most common indicator of a recession involves two quarters of negative gross domestic product (GDP) growth. “GDP tells us how big the size of the pie is,” said Justin Wolfers, professor of economics and public policy at the University of Michigan.
The service sector expanded during the month of September, but it did so at a slower-than-expected pace, according to the ISM Non-Manufacturing Index. This could be a potential play for relative value ...
When someone is selling, someone else better be buying and Japan’s bond market is finding that out with the latest sell-offs in the country’s debt market. Per a Bloomberg report, Japan’s bond futures have fallen by the most since 2016, which caused margin calls for investors following the country’s worst 10-year debt auction in three years—a possible alarm for bond markets around the globe? “This is a prime example of the unintended consequences of public policy,” said Murray Gunn, Head of Global Research at Elliott Wave International.
In what looks like a negotiation tactic in order to force China's hand into a trade deal, the White House said it was looking into restricting U.S. investment into China as well as limiting the trading of Chinese equities on U.S. exchanges. Can this do more harm than good to U.S. equities? “U.S. is not as open as before.
At the Delivering Alpha conference, Billionaire investor Leon Cooperman said the latest central bank move is “screwing the savers” as the Federal Reserve followed up their July rate cut with another quarter-point rate cut on Wednesday. Rates were already low,” Cooperman said. “The weakness in the economy, in my opinion, is directly attributable to the president’s dialogue on tariffs,” Cooperman, who founded Omega Advisors in 1991, said from the conference.
From a global perspective, the rise of the robots continue as Swedish-Swiss engineering group ABB breaks ground on building a $150 million robotics plant in Shanghai. On a monthly basis, the Index will rebalance such that the weight of the Long Component is equal to 150 percent and the weight of the Short Component is equal to 50 percent of the Index value.
The capital markets are widely expecting the Federal Reserve to implement another rate cut this week with algorithmic models like the CME Group’s FedWatch tool forecasting a 65.8% chance of a cut. “While the push-through of inflation from oil prices to core prices is small, the jump in overall prices, in combination with signs that core inflation is already heating up, may make it more difficult for the Fed to cut rates further,” said Beth Ann Bovino, U.S. chief economist at S&P Global Ratings.
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 ...