|Bid||259.80 x 1300|
|Ask||259.84 x 800|
|Day's Range||259.85 - 264.03|
|52 Week Range||252.92 - 293.94|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.09%|
Could Market Risks Bring Investors Back to Gold in 2019? During an investor webcast on December 11, DoubleLine CEO Jeffrey Gundlach painted quite a bearish picture of stocks, bonds, and the US economy (SPY)(DIA). Gundlach also cited an Atlanta Fed study that calculates that an unwinding of $600 billion from the Fed balance sheet is equivalent to three interest rate hikes.
According to a report by the World Gold Council (or WGC), holdings in gold ETFs rose for the second consecutive month in November to 21.2 tons to a total of 2,365 tons. It also said that the global gold-backed ETF flows are now positive in US dollar (UUP) terms for the year. ETF flows were positive for the first time in four months. The renewed buying interest from investors was on account of increased market volatility and the equity market sell-off.
Could Market Risks Bring Investors Back to Gold in 2019? Last week turned out to be great for gold prices (GLD). As equity and bond markets continued to struggle, gold made the best of the situation.
The broader market sell-off that began in October doesn’t seem to be stopping anytime soon. On the fundamental side, investors’ worries related to rising interest rates and global trade tensions were the two key reasons for this sell-off in October. Federal Reserve Chair Jerome Powell’s dovish comments in November helped US equities to regain investors’ confidence to some extent.
The contradictory statements from White House officials, Trump’s tweets, and the arrest of the Huawei CFO in Canada dimmed the outlook for a permanent trade deal between the US and China (FXI). Equity markets also took cues from the bond market, which portended a slowdown ahead.
The broader market sell-off is intensifying as US-China trade uncertainties and concerns over the slowing global economy are badly hurting investors’ sentiments. However, some stocks are still giving investors a reason to celebrate.
Apple (AAPL) has been facing troubles in the fourth quarter due to factors ranging from reports of weakening new iPhone sales to fears about tariffs on its Chinese imports into the US. The company’s stock is approaching its six-month low again. Today around 10:30 AM EST, the stock posted a day low of $166.11, down 2.8% from its previous day’s closing price. This level was not far away from Apple’s six-month low of $163.33 posted on Monday this week.
On December 6–13, US equity indexes had the following correlations with US crude oil January futures: the S&P Mid-Cap 400 (IVOO): -51.5% the S&P 500 (SPY): -49.7% the Dow Jones Industrial Average (DIA): -43.3%
President Trump discussed China’s economic troubles during his recent interview with Fox News. In the last few months, many of the leading indicators from China (FXI) have shown signs of weakness. The indicators include China’s slower-than-expected November trade data and a consistent fall in China’s vehicle sales in the last five months.
On December 6–13, major energy ETFs had the following correlations with US crude oil January futures: the Alerian MLP ETF (AMLP): 68.8% the Energy Select Sector SPDR ETF (XLE): 60% the SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 58.4% the VanEck Vectors Oil Services ETF (OIH): 2.8%
The US-China trade war, primarily triggered by President Donald Trump imposing tariffs on Chinese imports, started getting ugly in the last few months. Investors watched President Trump and President Jinping’s meeting in Argentina earlier in December.
Johnson & Johnson (NYSE: JNJ) is down over 8% as of 11:10 A.M. EDT following the release of a special report by Reuters which stated that “J&J knew for decades that asbestos lurked in its Baby Powder.”
Strong domestic Retail Sales have added importance today, when we see Retail numbers for China missing expectations, helping send Asian markets lower overnight.
Since the beginning of the fourth quarter, the broader market has been facing trouble due to various issues including rising interest rates, concerns about the slowing global economy, and the US-China trade war. These factors have taken a toll on US equities (VTI) and resulted in more volatility. Before we discuss some of the factors in detail, let’s find out how the key indices are faring in the fourth quarter, especially in December.
The stock of Chinese electric carmaker NIO (NIO) has been highly volatile since its listing on the New York Stock Exchange in September 2018. The company is set to launch its ES6, its much-awaited five-seat SUV, on December 15. Before we discuss more on the ES6, let’s first find out how NIO’s stock is faring before the vehicle launch event.
The total land value alone of the 48 contiguous U.S. states is roughly $23 trillion as of 2015, according to Federal Housing Finance Agency economist William Larson. On top of that land value, the total value of the U.S. stock market is roughly another $30 trillion. The U.S. now has about $9 trillion in outstanding mortgage debt.