Posts Tagged 'Interest Rates'

Daily “Ways-to-Play” The News Before the Moves 3/31/2010

Sign up for our Daily “Ways-to-Play” Email Today

4 Reasons to Consider Utility ETFs

There are a gazillion ways to play the energy sector with exchange traded funds, but you’re not just limited to oil, natural gas or solar power. Utilities might be an off-the-beaten path way to invest in the nation’s changing energy picture.

ETFDesk users see this as a potential opportunity to: buy Rydex S&P Equal Weight Utilities ETF (RYU)

buy Vanguard Utilities ETF (VPU)

buy iShares S&P Global Utilities Sector Index Fund (JXI)

buy iShares DJ US Utilities (IDU);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Are Home Prices Cheap?

Analysts at Deutsche Bank attempt to answer the question “Rent of Buy?” in a new research piece out today. While falling home prices and declining interest rates have narrowed the rent-buy gap, home affordability is not high by historical standards.

ETFDesk users see this as a potential opportunity to: sell iShares DJ US Real Estate (IYR);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Long-Term Rates Finally on Verge of Breaking Out

ALTHOUGH THE FED HAS reaffirmed its low short-term interest rate policy, it cannot control long-term interest rates. In fact, the yield on the benchmark 10-year Treasury note has risen from a low of 3.23% at Thanksgiving of last year to its current level 3.87%.

ETFDesk users see this as a potential opportunity to: sell iShares Lehman 20+ Year Treasury Bond Fund (TLT)

sell iShares Lehman 7-10 Year Treasury Bond Fund (IEF)

sell iShares Lehman 10-20 Year Treasury Bond Fund (TLH)

buy UltraShort Lehman 7-10 Year Treasury ProShares (PST)

buy UltraShort Lehman 20+ Year Treasury ProShares (TBT)

sell PIMCO 7-15 Year U.S. Treasury Index Fund (TENZ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

M&A surges in Asia while US and Europe suffer

Mergers and acquisitions boomed in Asia in the first quarter in sharp contrast to a slump in deal volume in Europe and the US, underlining a global shift in activity in the wake of the credit crisis.

ETFDesk users see this as a potential opportunity to: buy Gabelli Global Deal Fund (GDL)

buy IQ ARB Merger Arbitrage ETF (MNA);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Oil in Big Macs: Chart of the Day

The idea for this comparison of Oil to Big Macs, is that a Big Mac is representative of a basket of agricultural goods and thus compares the relative advantage of trading food for oil. Whats interesting about this is that theoretically, it should be a somewhat inflation-adjusted measure of oil prices. As of now it appears agricultural goods is undervalued relative to Oil.

ETFDesk users see this as a potential opportunity to: sell United States Oil Fund LP (USO)

buy ELEMENTS – Rogers International Commodity Index Agriculture Total Return (RJA);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Daily “Ways-to-Play” The News Before the Moves 3/30/2010

Sign up for our Daily “Ways-to-Play” Email Today

The equity market rally is nearing its end

That’s the view of Morgan Stanley’s Teun Draaisma, who reckons the much feared tightening is about to begin in earnest.

ETFDesk users see this as a potential opportunity to: sell DJIA DIAMONDS (DIA)

sell S&P 500 SPDR (SPY)

sell iShares Russell 2000 (IWM);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Must Be A Bull Market: The Dumbest Job Ever, Day Trading, Is Cool Again

Apparently, day trading is back. The New York Times says so. So it must be.

Check out how others are using ETFs to capitalize on this news or add your own opinion

Actively Managed Mutual Funds Are Obsolete

With index funds and ETFs offering diversification at lower cost, actively managed funds have lost their original purpose.

Check out how others are using ETFs to capitalize on this news or add your own opinion

Why Fund Managers’ Hot Performance Isn’t So Hot

Where have all the geniuses been hiding, and why have they suddenly been popping up everywhere?
Check out how others are using ETFs to capitalize on this news or add your own opinion

Euro Trashed

THE European Monetary Union, the basis of the euro, began with a grand illusion. On one side were countries — Austria, Finland, Germany and the Netherlands — whose currencies had persistently appreciated, both within Europe and worldwide; the countries on the other side — Belgium, France, Greece, Italy, Portugal and Spain — had persistently depreciating currencies. Yet the union was devised as a one-size-fits-all structure. As a result, some countries had to use creative accountin

ETFDesk users see this as a potential opportunity to: buy iShares MSCI-Germany (EWG);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Strong Earnings May Already Be Baked In

For investors, the thrill of earnings season may be over before it’s even begun. The first quarter ends on Wednesday, and earnings season gets into full swing with aluminum giant Alcoa’s results due out on April 12.

ETFDesk users see this as a potential opportunity to: sell DJIA DIAMONDS (DIA)

sell S&P 500 SPDR (SPY)

sell Nasdaq-100 Index Tracking Stock (QQQQ)

sell iShares Russell 2000 (IWM);

Check out how others are using ETFs to capitalize on this news or add your own opinion

China becomes world’s new diabetes capital

China now has more people with diabetes than any other country, a new report shows, making it clear that the nation’s soaring economic growth is taking a toll on public health.

ETFDesk users see this as a potential opportunity to: buy Biotech HOLDRS (BBH);

buy iShares Dow Jones U.S. Medical Devices Index Fund (IHI);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Daily “Ways-to-Play” The News Before the Moves 3/29/2010

Sign up for our Daily “Ways-to-Play” Email Today

Are Water Utilities Ready to Rise With the Economic Tide?

Since March 9th of last year, the Standard & Poor’s Composite 1500 index, a broad-based, capitalization-weighted benchmark of 1,500 U.S. companies, has rallied 75%. As it happens, all but one industry group in the index, which is comprised of the S&P 500, the S&P 400 (mid cap), and the S&P 600 (small cap), has seen a double-digit percentage rally over the span

ETFDesk users see this as a potential opportunity to: buy PowerShares Water Resource Portfolio (PHO)

buy Claymore S&P Global Water Index ETF (CGW)

buy First Trust ISE Water Index Fund (FIW)

buy PowerShares Global Water Portfolio (PIO);

Check out how others are using ETFs to capitalize on this news or add your own opinion

A euro exit is the only way out for Greece

Greece faces the threat of state bankruptcy. No longer is there any illusion that membership of Europe’s economic and monetary union provides protection from harsh realities. Since it entered the euro area in 2001, Greece has sacrificed competitiveness and amassed enormous trade deficits. Theoretically, to make up the economic ground lost in less than a decade, the Greeks would need to devalue by 40 per cent. But in a monetary union, that is impossible.

ETFDesk users see this as a potential opportunity to: buy iShares MSCI-Germany (EWG)

buy Rydex Euro Currency Trust (FXE);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Brazil yields up on interest rate hike bets

SAO PAULO, March 25 (Reuters) – Yields on Brazilian interest rate future contracts for shorter maturities jumped on Thursday over expectations the central bank would hike borrowing costs in April for the first time in two years.

ETFDesk users see this as a potential opportunity to: buy WisdomTree Dreyfus Brazilian Real Fund (BZF);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Greenspan Calls Treasury Yields ‘Canary in the Mine’

March 26 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan said the recent rise in Treasury yields represents a “canary in the mine” that may signal further gains in interest rates.

ETFDesk users see this as a potential opportunity to: sell iShares Lehman 20+ Year Treasury Bond Fund (TLT)

sell iShares Lehman 7-10 Year Treasury Bond Fund (IEF)

buy UltraShort Lehman 7-10 Year Treasury ProShares (PST)

buy UltraShort Lehman 20+ Year Treasury ProShares (TBT)

buy Direxion Daily 30-Yr Treasury Bear 3x Shares (TMV)

sell PIMCO 7-15 Year U.S. Treasury Index Fund (TENZ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Junk Bonds in ‘Goldilocks’ Market Reach Record: Credit Markets

March 29 (Bloomberg) — Junk bond sales reached a record this month as rising profits and record low Federal Reserve interest rates foster lending and investment to the lowest-rated borrowers.

ETFDesk users see this as a potential opportunity to: buy iShares iBoxx $ High Yield Corporate Bond Fund (HYG)

buy SPDR Lehman High Yield Bond ETF (JNK);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Stocks Soar, but Many Analysts Ask Why

The unemployment rate remains locked in a range that recalls the economic doldrums of the early 1980s. Housing is stuck in a ditch, with foreclosures rising. And consumers are still reluctant to part with the little cash they do have.

ETFDesk users see this as a potential opportunity to: sell S&P 500 SPDR (SPY);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Greece May Need More Support Than You Think

Daily “Ways-to-Play” The News Before the Moves 3/26/2010

Sign up for our Daily “Ways-to-Play” Email Today

Is China blowing bubbles? – ft/alphaville

Yes, says Citigroup’s Willem Buiter, who thinks the Chinese authorities will fail in their efforts to prevent a classic boom, bubble and bust asset sequence.
ETFDesk users see this as a potential opportunity to: sell PowerShares Golden Dragon Halter USX China Portfolio (PGJ)

sell iShares FTSE/Xinhua China 25 (FXI)sellSPDR S&P China ETF (GXC)buy WisdomTree Dreyfus Chinese Yuan Fund (CYB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Interesting Market Thoughts from Dave Rosenberg

Stronger U.S. dollar. Rising bond yields. Lower commodity prices. Slower growth. And the stock market is flirting at post-crisis highs. Bond yields are rising temporarily and this will very likely prove to be a good buying opportunity;

ETFDesk users see this as a potential opportunity to: buy iShares Lehman 7-10 Year Treasury Bond Fund (IEF)

buy PowerShares DB US Dollar Index Bullish Fund (UUP)

sell S&P 500 SPDR (SPY)

sell iShares Lehman TIPS Bond Fund (TIP)

sell iShares Russell 2000 (IWM)

buy UltraShort Lehman 20+ Year Treasury ProShares (TBT)

buy PIMCO 7-15 Year U.S. Treasury Index Fund (TENZ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Gabelli Sues Western

This Complaint seeks declaratory and injunctive relief arising from Defendants’ illegal acquisition of GGMT’s voting stock in clear violation of the antipyramiding provision, 15 U.S.C. § 80a-12(d)(1)(A)(i), and Section 48(a), 15 U.S.C. § 80a-48(a), of the Investment Company Act of 1940 (the “Investment Company Act”). Defendants are now threatening to use that wrongfully-acquired voting power in a proxy contest for the election of directors of GGMT at the annual meeting currently e
ETFDesk users see this as a potential opportunity to: sell Gabelli Global Multimedia Trust (GGT);

Check out how others are using ETFs to capitalize on this news or add your own opinion

The dollar’s danger A debt-driven collapse?

If no one else will bid at the desired rates, the Federal Reserve is likely to step in as the “lender of last resort” — buying hundreds of billions of dollars of US government debt. But that is effectively printing money to pay our bills — the classic alarm signal for a coming explosion in inflation.
ETFDesk users see this as a potential opportunity to: sell iShares Lehman 20+ Year Treasury Bond Fund (TLT);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Interesting Market Thoughts from Dave Rosenberg

 Interesting thoughts from Dave Rosenberg: 

MARKET THOUGHTS  

A good friend, and long-time reader, was kind enough to pass along these thoughts yesterday. Basically, the stars are starting to align for something really big to happen. 

First, the Shanghai index peaked in August 2009 and had a secondary top in December 2009 (global demand slowing?). Many emerging markets are all negative year to date. 

Second, gold peaked in the first week of December 2009 (and now breaking down) while the U.S. dollar index (the DXY) is breaking higher (Greece has not been resolved). 

Third, TIPs (ETF) peaked the first week of December 2009 (and just broke to a new four month low). 

Bottom line: Stronger U.S. dollar. Rising bond yields. Lower commodity prices. Slower growth. And the stock market is flirting at post-crisis highs. Bond yields are rising temporarily and this will very likely prove to be a good buying opportunity; however, over the near-term, higher yield activity may well persist and the question is how the equity market is going to handle this backup in market rates. Recall that the 10-year yield had a March to June 2007 spike of 90bps before the rate and credit collapse took hold in the back half of 2007! Could it be that history is rhyming again? The March-June period has been seasonally weak for the Treasury market in five of the past six years. 

 

Fourth, commodity prices peaked in the first week of January and appear to be rolling over. Head-and-shoulders top from October 2009 peak? 

Fifth, could we be in for a March peak in equities? The NYSE new high list peaked six trading days ago. Recall that a market correction followed in October of last year and January of 2010 following similar peak in new highs. 

Sixth, despite signs of economic cooling in Q1 (around 2.5% growth and half the Q4 pace) and lower inflation expectations, the 10-year Treasury note yield is ratcheting up (in a destabilizing fashion) and devoid of any bearish economic data (for a range of technical/fund flow reasons as was the case in the summer of 2007 — we never said at the Grant’s conference in New York that it was going to be a straight line down). But in technical lingo, it does look as though the yield is breaking out from a triangle since the December 31, 2009 yield peak —go back to that period in December and January, 3.85% on the 10-year Treasury-note served at least three times to be major technical support — a break of that this time around would mean some serious near-term trouble (the nearby high closing level was 3.98% back on June 10, 2009). 

Rates may be rising because: 

  1. Of added supply concerns from Obamacare;
  2. Sovereign credit quality;
  3. Heightened fears over a looming trade spat with China (if the Treasury accuses China of being a ‘currency manipulator’ next month);
  4. Hedging related to the most recent huge wave of corporate bond issuance;
  5. Swap rates have also become unhinged (they traded at an unprecedented 8bp discount to 10-year Treasuries yesterday) ….

… but yields are NOT rising from inflation (in fact deflation signs are re-appearing again). Hence, real yields are on the rise … not typically what an equity bull would like to see with real growth now softening. Rising real rates as real growth slows means it is time to get more defensive, not more cyclical (especially with small-cap stocks up nearly 10% year-to-date, doubling the performance of the large-caps. This will not be sustained as the global and domestic economies cool off through the balance of the year.) 

Daily “Ways-to-Play” The News Before the Moves 3/25/2010

Sign up for our Daily “Ways-to-Play” Email Today

Man San International (B.V.I) Limited Completes Merger of…

Man San International (B.V.I) Limited Completes Merger of…
Check out how others are using ETFs to capitalize on this news or add your own opinion

Top ten reasons you know China has a financial bubble on its hands

Chancellor includes this blind faith in the 10 signposts of manias and financial crises (very reminiscent of Kindelberger, by the way).

ETFDesk users see this as a potential opportunity to: sell PowerShares Golden Dragon Halter USX China Portfolio (PGJ)

sell iShares FTSE/Xinhua China 25 (FXI)

sellSPDR S&P China ETF (GXC)

sell Claymore/AlphaShares China Small Cap Index ETF (HAO)

sell Claymore/AlphaShares China Real Estate ETF (TAO);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Oil reserves ‘exaggerated by one third’

The world’s oil reserves have been exaggerated by up to a third, according to Sir David King, the Government’s former chief scientist, who has warned of shortages and price spikes within years.
ETFDesk users see this as a potential opportunity to: buy PowerShares DB Oil Fund (DBO)

buy United States Oil Fund LP (USO)

buy iPath S&P GSCI Crude Oil Total Return Index ETN (OIL)

buy United States 12 Month Oil Fund, LP (USL)

buy ProShares Ultra DJ-AIG Crude Oil (UCO)

buy PowerShares DB Crude Oil Long ETN (OLO)

buy United States Short Oil Fund, LP (DNO);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Social Security to See Payout Exceed Pay-In This Year

The bursting of the real estate bubble and the ensuing recession have hurt jobs, home prices and now Social Security. This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.

ETFDesk users see this as a potential opportunity to: sell iShares Lehman 20+ Year Treasury Bond Fund (TLT)

buy PowerShares DB Base Metals Fund (DBB)

buyPowerShares DB G10 Currency Harvest Fund (DBV);

Check out how others are using ETFs to capitalize on this news or add your own opinion


Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 39 other followers

ETFDesk.com

ETFDesk Spotlight

March 2017
M T W T F S S
« May    
 12345
6789101112
13141516171819
20212223242526
2728293031