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.
A traditional 60/40 stock/bond portfolio has been a tried and tested strategy among financial planners. But income seekers can specifically reap the benefits of both assets with exposure to one active exchange-traded fund: the NEOS Enhanced Income Aggregate Bond ETF (BNDI).
The expectation of higher corporate earnings in 2024 could help prop up the actively managed NEOS S&P 500 High Income ETF (SPYI). Of course, capital markets are brimming with optimism, with the expectation of rate cuts to come.
The anticipation of rate cuts to come this year is making for a busy bond month to start 2024. Now, regional banks are adding to corporate bond sales, according to data from Bank of America.
While capital markets are expecting rate cuts to come this year, the pace at which they occur and when certainly comes into question. While the Fed continues to mull rates, fixed income investors can consider three specific ETFs from Vanguard to get more yield.
With the expectation of Federal Reserve rate cuts to come this year, global central banks could also follow suit. This could pave the way for international equities to run higher, giving investors upside while also getting diversified exposure.
Emerging markets bonds issuance is already reaching record highs early in 2024. The Financial Times reported that EM debt issuance is already at $50 billion, opening opportunities in EM bond ETFs.
Wall Street is doubling down on their bond bets for 2024. The notion that rate cuts are finally coming in 2024 spurs this movement. That said, here are a trio of exchange traded funds (ETFs) from Vanguard worth noting.
An initial lull ahead of a so-called “January Effect” is stifling the U.S. equities rally investors saw in 2023 and small caps haven’t been immune. Nonetheless, active strategies can help mute the short-term downside by adding flexibility when markets fluctuate.
2023 was a memorable year for AI, which also benefited the semiconductor industry. The growth trajectory of the former should also boost the latter. And that should allow traders to continue leveraging its strength in 2024.
The demand for nuclear energy is continuing at a rapid pace, and more countries are becoming receptive to its use. This is evident in a declaration to triple nuclear energy by the year 2050.
There was a lot of optimism just before the new year, but that may have already been priced into 2023’s gains for the S&P 500. January is historically a slow month for the index, which should be enough to appease the bears if that trend persists.
The prevailing consensus in 2024 is that the Federal Reserve will cut interest rates. But predicting central bank moves is an inexact science. That said, fixed income investors could use the help of an active strategy to continue extracting higher yields.
Confidence in the bond markets is fueling a two-month rally in prices as the capital markets brace for rate cuts in 2024. Whether they happen at a furious pace or not is anyone’s guess, but the expectation of cuts are providing enough spark for the rally.
Banks that rely heavily on lending products for revenue have been hit by higher interest rates. But capital markets expect rate cuts in 2024. That could give bullish vibes for regional banks.
For the greater part of the year, large-cap stocks have been in pole position for most of the 2023 rally. But investors who want to add a dose of growth while maintaining large-cap stability may want to give midcap equities a closer look.
With 2024 just around the bend, fixed income exchange-traded funds (ETFs) are offering investors bright prospects for bond exposure in the new year and capital allocation is expected to increase.
The 60/40 portfolio composed of stocks and bonds, respectively, has somewhat fallen to the wayside in the past decade. But with optimism flooding the bond markets for 2024, it could make a comeback.
The growing narrative of artificial intelligence should continue as 2023 turns into 2024. One of the ongoing names to watch is chipmaker Nvidia, which should propel ETFs with exposure to the stock.
If the artificial intelligence (AI) theme remains hot heading into 2024, this could help push the Direxion Daily NVDA Bull 1.5X Shares (NVDU) even higher in the new year as the chipmaker expands its market share.
The capital markets are already pricing in rate cuts ahead of 2024, causing yields to fall. One way to continue supplementing income amid a potential drop in yields is to diversify income using a pair of active exchange-traded funds.
The recent rate pause by the Federal Reserve is bringing optimism to the capital markets that interest rates may finally head lower. In turn, it’s pushing yields down. Conversely, bond prices rallied in November, which should help bring investors back to the market.
