While extracting yield is a prime option for bonds exposure, the risk associated with depreciating prices shouldn't put off investors.
As the capital markets brace for potential rate cuts before the end of the new year, investor demand is building for corporate bonds.
Rising profits could bring more fixed income investors to corporate bonds if the profit outlook remains rosy.
Rather than wait for interest rate cuts, some companies are opting to simply offload debt, which could be a boon for corporate bonds.
The current macroenvironment could spell opportunity for active bond funds as bond yields may have peaked.
April’s sell-off isn’t dissuading investors from taking a closer look at adding bonds to their portfolio. The price dip is giving prospective bond investors a chance to take action on higher yields now before the U.S. Federal Reserve eventually cuts rates.
The prospect of interest rate cuts may be helping to fuel gold's rally. However, it's not the only factor propelling gold to new highs.
Even if higher-for-longer interest rates are applying downward pressure on prices, bonds still look enticing.
Amid geopolitical tensions in the Middle East, bullish momentum could remain for a pair of Vanguard oil ETFs.
The melding of yield and rate risk mitigation is available in the Vanguard Intermediate-Term Bond ETF (BIV).
Traders can continue riding the strength of the AI wave with the Direxion Daily Semiconductor Bull and Bear 3X Shares (SOXL).
Q2 weakness is causing traders to up their bearish bets on bond prices, but it presents an opportunity for value-seeking investors.
It appears investors are heading for the exits on U.S. Treasuries and towards the entranceway of European bonds.
The S&P 500 has been touching new highs after a rocky start to the first quarter of 2024, and is doing the same thing again at the start of Q2. While market corrections will happen invariably, it’s a reminder that traders can always take advantage of any short-term weakness.
Investors have been opting for intermediate-term bonds funds as uncertainty over the Federal Reserve's policy looms.
Derive market upside and tax-efficient income with the actively managed NEOS S&P 500 High Income ETF (SPYI).
A flurry of investor interest is taking place in the corporate bond market as investors scramble for yield before rate cuts.
More investors are willing to take on credit risk in order to attain yield, but there are other ETF options to consider.
Rate cuts should help ease volatility in the bond markets, making it ideal for prospective bond investors to get core exposure.
As the anticipation of rate cuts build, it may cause fixed income investors to fret, but an ultra-short option could help ease those worries.
Corporate defaults have been on the rise. As such, investors may want to consider investment-grade debt until credit risks subside.
As the S&P 500 continues climbing, investors don't need to worry about a sudden drop, which bodes well for high-yielding dividend funds.
In a global macroeconomic environment fraught with high inflation, consumers are stressing needs over wants, but that’s not to say they’re abstaining from the latter completely.
Capital markets appear content with playing the rate cut waiting game as the S&P 500 continues to rise to new highs. Meanwhile, renewed volatility could make investors reconsider adding an equal weight strategy to their portfolios.
The broad stock market is taking a breather from its rally. That means the “Magnificent Seven” stocks are also catching their breath after a strong rally that started late in 2023. Despite the recent pullback, certain members of that cohort still show technical signs of bullishness.
The ongoing narrative around the strength of large-cap equities will continue to center around forthcoming rate cuts. Once the Federal Reserve receives the economic data it needs to loosen monetary policy and hit its inflation goal of 2%, it could propel growth-oriented large-cap stocks into the stratosphere.
Any sliver of news that feeds into the higher-for-longer interest rates narrative will be an unwelcome guest for tech bulls. For traders looking to feed off bearishness, it’s an opportunity to take advantage of inverse exchange traded funds (ETFs).
Taking advantage of yields now before the Federal Reserve loosens monetary policy has caused investors to scramble for bond exposure amid record issuance in 2024. Prospective investors looking to add core exposure to their portfolios can consider a pair of ETFs from Vanguard.
Record issuance in bonds to start 2024 is now showing up in the sales numbers. In the case of corporate bonds, record issuance in January was met with record sales in February as the scramble to lock in yields is spurring bond buyers to act.
Amid a 2023 market rally, exchange-traded fund (ETF) inflows had a banner year, putting the mutual fund industry further on notice that ETF popularity continues to grow exponentially. Furthermore, the move toward ETFs should increase investor exposure to active funds that focus on bonds.
The markets these days have been especially sensitive to economic data, as any indication of weakness could mean rate cuts may finally be close. That, in effect, should also push the S&P 500 to even higher heights.
Thanks to artificial intelligence (AI) and investors still holding out hope that rate cuts will happen at some point, global equities are marching higher. That rally could eventually spill over into other assets like international bonds.
A retreating dollar is exactly what gold needed to put the precious metal back into the investment spotlight. Hotter-than-expected inflation in January pushed the yellow metal below the $2,000 mark. But it has been rising again with geopolitical factors providing tailwinds along with a weaker greenback.
The S&P 500’s drive toward a record high could have Europe equities following right behind it. As such, traders may want to consider European equities as a latent move if the S&P keeps pushing to higher highs.
Investors have been basking in the sunlight of a year-end market rally in 2023 that appears to be continuing in 2024 after a slow start to January.
Cloud computing is one of the sub-sectors of technology that are benefiting from last year’s rally. When it comes to specific names, CrowdStrike is a notable one helping to push the Direxion Daily Cloud Computing Bull 2X Shares ETF (CLDL) even higher.
Record issuance in the corporate bond market is giving fixed income investors an abundance of opportunities. However, due diligence is necessary as high-yielding bonds may uncover a risky proposition that doesn’t quite match an investor’s risk profile.
A record month of issuance in January and still relatively high yields could be prime drivers of demand for corporate debt in the current market environment. With that, an all-encompassing approach to corporate debt is available in the Vanguard Total Corporate Bond ETF ETF Shares (VTC).
The not-so-secret ingredient that’s been fueling gains for big tech since its fourth quarter has definitely been artificial intelligence (AI). The lack of AI tailwinds for Tesla could be pushing the company’s stock down further.
Big tech’s strong fourth-quarter rally behind artificial intelligence (AI) has been well-documented, but the big question was whether it could sustain the run. So far it has, with the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT) up almost 50% over the past three months.
Capital markets pondering when and how fast rate cuts come may invoke anxiety in fixed income investors expecting yields to fall. If they’re willing to extend their exposure to higher duration, they can attain the higher yields they seek.
When ETF investors want real estate exposure, they’re not relegated to just the residential market. That’s imperative in the current market environment. The ALPS Active REIT ETF (REIT) provides this flexibility.
The start of 2024 has been marked by record issuance both in the public and private business sectors. In terms of the latter, green bonds are also hitting the market, as in the case of plastics maker Dow Inc.
A data-dependent Federal Reserve is keen to hold interest rates until it gets additional confirmation inflation is cooling. This could keep the window open for prospective bonds investors seeking value opportunities.
The recurring theme of artificial intelligence (AI) isn’t going away soon. Members of the Magnificent Seven, which include household big tech names, saw their earnings boosted along with rosier outlooks thanks to the inclusion of AI in their respective business operations.
To stay competitive with their peers, big tech companies will need to continue leveraging the capabilities of artificial intelligence (AI). Given this competitive landscape, an alternate play on AI could be single-stock exchange-traded funds (ETFs) in companies like Microsoft.
The start of 2024 has been marked by record issuance in bonds both in the public and private sectors. But as fresh supply hits the bond market, prices have been dipping as of late.
Big tech appears to be sloughing off its slow start to 2024 and tech dominance could continue if history once again proves to be correct. If that’s the case, bulls can continue riding the tech wave.
The residential real estate market will continue to be at the mercy of interest rate policy throughout 2024, but there are other corners of the real estate market to consider. One active exchange traded fund, in particular, takes a different approach to real estate.
The “Magnificent Seven” were at the forefront of 2023’s market rally, but the same leader board has done some shifting to start 2024. After an earnings miss, the stock of Tesla faltered, while peers like Microsoft and Apple continue to see higher heights, reaching the $3 trillion club.