Displaying items by tag: bull market

As the economy’s taken a wicked turn toward the dark side, the clamor for fixed income ETFs has parachuted, according to usnews.com.

Peng Cheng, JP Morgan strategist, explained that this includes retail investors, who hopped on the bandwagon last month, loading into credit ETFs like SPDR Bloomberg High Yield Bond ETF and the share iBoxx $ Inv Grade Corporate Bond ETF.

Earlier in the month, a new series of exchanged-traded funds launched, the US Benchmark Series. That will help ease they way for individual and institutional investors to trade the must updated individual benchmark U.S. Treasuries, which will shone a light on the maturing ETFs in the fixed income category, according to reuters.com. "This gives (investors) a tool to say, we really want to focus on how we execute our investment strategy, as opposed to how effectively we trade Treasury bonds," said F/m President Alex Morris.

 

Published in Bonds: Total Market
Sunday, 01 May 2022 15:42

Bond Market Rally on the Horizon

Calling bond prices stubborn would be an understatement, and the bears have been continuing to pull investors out of the bond market in the mass exodus of outflows. The tides could be starting to shift, and the reasons are on opposite ends of the spectrum. Investing yield curves and recession indicators are flashing, which means investors will flock back to the bond market as a safe asset when equities fall. On the other side of things, if inflation is being driven by supply-side factors more than the Fed thinks, then inflation will fall dramatically, and less tapering will be needed to get there. This means bond prices could rise as yields fail to. Broad bond exposure is still a good idea with volatility rising.


Finsum: It’s been rough in the bond market the last few months, but there are economic reasons that could turn around.

Published in Bonds: Total Market
Monday, 25 April 2022 07:47

Four Reasons to be Bullish

The average investor is scared of market conditions and as a result we have seen various measures of sentiment plummet, but now could be the exact moment to hit the dip and ride a bull wave. The first reason is the Bull/Bear ratio which was a 1.12 which below two is buy territory and approaching or below one is a strong buy. The other reason is comically low sentiment which usually proceeds a booming period. While inflation fears are rampant, core inflation took a strong movement in the right direction which means that the Fed won’t have to tighten as much. Finally, the pandemic is starting to show sings of trickling out, and while new variants are spreading each subsequent new variant has had a smaller impact and been less lived. This could be a huge win for supply chains which could trickle into lower inflation and much higher growth.


Finsum: There are early signs of optimism for stocks and bonds; the time to strike could be very soon.

Published in Economy
Wednesday, 20 April 2022 19:39

JPMorgan Bullish on Value and Growth Stocks

Growth and value don’t typically have strong co-movement with one and other unless its a total market rally, however JPMorgan’s Kolanovic is telling investors that forking central banks, rising commodities, and stock sell off are the catalyst for the bulls to move on value and growth. He told investors to construct a barbell portfolio with bio-tech tech and innovation pulling growth and metals and mining leading the way for value. Its the perfect swarm of macro factors that can elevate these markets. International growth stock have fallen so far they are beginning to show P/E ratios that look like value stocks and should intrigue investors. JPMorgan says the war in Ukraine could persist which will continue to elevate commodities.


Finsum: This is a great time for traditional energy, particularly for bond investors stuck in the cold.

Published in Eq: Growth
Monday, 14 March 2022 20:51

Why Treasuries are Turning Around

There is nothing like an international conflict to generate a flight to safe assets, and as much pressure as treasury bond prices have taken in the last year, they are still the world’s premiere safe asset. Inflows post Russia’s invasion of Ukraine have lowered Treasury yields and raised bond prices. Additionally it appears that markets are either dubious of the Fed’s rate hikes or just don’t think it will take as many to get the jobs done. Regardless, many bond ETFs, particularly around treasuries have benefited such as the iShares 7-10 Year Treasury Bond ETF and the iShares 20+ Year Treasury Bond ETF which were up 2.0% and 2.6% respectively in the last week.


Finsum: Treasuries are still the global safe asset and they are still in short supply given the abnormally low levels of U.S. interest rates.

Published in Bonds: Treasuries
Page 2 of 22

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…