iShares Emerging Markets ETF (EEM)

NOTHING TO SEE HERE, HAVE A NICE WEEKEND

Stocks dropped at the open but quickly recovered after a positive consumer sentiment report. The Dow is currently flat and the SPX is down .28%. Utilities and healthcare sectors are up modestly. Most retailers are catching a bid as well. On the other hand, semiconductors, energy and industrials are in the red. European markets closed down about .4% and China’s markets dived more than 2% last night. Emerging markets funds have really underperformed this month on rising trade tensions. Commodities are mostly lower today. WTI crude oil is flat at about $62.90/barrel. Remember, oil is reacting to Iran’s terrorism, not to the US-China trade dispute. Bonds aren’t moving much, except at the long end. The 10-year Treasury yield is hovering around 2.39%. Bond traders are watching to see if the 10-year can hold above near-term support at 2.37%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

JOBS REPORT TO THE RESCUE

Stocks opened higher this morning after the Bureau of Labor Statistics released its March jobs report (see below). The Dow is currently up 34 pts and the SPX is up .38%. Nine of eleven major market sectors are trading higher, led by energy (+1.5%) and healthcare (+.8%). The communications services sector is flat. Small-caps and emerging markets equities are outperforming today. The US dollar is slightly higher in early trading, and commodities are mixed.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 21, 2018

September 21, 2018

tocks opened higher again this morning (Dow +70 pts; SPX +.12%). These averages are having their best week in two months despite escalation in the trade war. Telecoms are surging 1.5% after a research shop upgraded AT&T (T). Industrials and energy sectors are up about .5%. After a 2.8% gain this week, financials are trading flat. European stock markets are up .8% today and Asia was broadly higher overnight. Bonds, on the other hand, are trading lower as interest rates head higher. The 5-year Treasury yield is up around 2.96%, a 10-year high. The 10-year Treasury yield ticked up to 3.07%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 19, 2018

September 19, 2018

Stocks opened higher this morning (Dow +203 pts; SPX +.17%; Nasdaq flat). Banks, basic materials producers and emerging markets stocks are up over 1% in early trading. On the other hand, utilities and FAANG stocks are trading lower. European markets are poised to close up about .5% and Asia was up over 1% last night. The dollar is flat against a basket of foreign currencies today and commodities are mostly higher. WTI crude oil is up around $70.70/barrel. After falling more than 20% this year, copper prices have retraced about 3% this month. Bonds are selling off as yields head higher. The 5-year Treasury yield is back up to 2.96%, a level it hasn’t seen in 10 years. The 10-year Treasury yield is up around 3.08%, toward the high end of its 7-year range. Bond traders are clearly anticipating two more interest rate hikes by the Fed this year, but according to Bloomberg, traders are starting to price in a Fed pause in mid-2019. That’s because eventually, Fed tightening can choke off economic growth by making lending too restrictive.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 10, 2018

September 10, 2018

The major stock market averages are mixed today (Dow -42 pts; SPX flat; Nasdaq flat). Transports (+1.5%), retailers (+.4%) and semiconductors (+.8%) are faring the best. Healthcare and gold miners are down on the day, as are emerging markets. The banks are roughly flat. The VIX Index is back down around 14 after hitting 15 last Friday. European stock markets closed in the green but most of Asia was down overnight. China’s market continues to falter, now down 23% on the year, after yet another threat by President Trump to escalate the trade war. Most commodities are lower on the day. WTI crude oil is trading at $67.57/barrel after having touched $70 a week ago. Gold is now down 8% this year & copper is off over 20%. Bonds are falling in price (rising in yield) today. The 5-year Treasury Note yield is back up around 2.82%, a one-month high. The 10-year yield is up around 2.94%, inching closer to 3%. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

June 6, 2018

Stocks opened higher again this morning (Dow +224 pts; SPX +.4%). Financials are rebounding over 1.5% as interest rates head higher. So not surprisingly, the utilities sector is down over 1.5%. Emerging markets funds are up 1% today and look to be recovering a bit from a beating in recent weeks. The dollar, which has been falling over the last week or so, is giving overseas stocks some breathing room. The VIX Index continues to slide, now trading under 12, suggesting little fear among investors. Commodities are mixed, with WTI crude oil down another 1% to trade around $64.80/barrel. Recall that oil was over $70 a couple of weeks ago. Bonds are selling off as yields tick up. The 5-year and 10-year Treasury yields are back up to 2.81% and 2.97%, respectively.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

March 6, 2018

The major stock market averages opened mixed this morning. The Dow is down 104 pts and the S&P 500 is down .1%. The Nasdaq is up .14%. Utilities are down .8% and biotechs, banks and retailers are in the red. Gold miners, semiconductors and materials stocks are in the green. The VIX Index, which uses stock options to measure investor fear, is holding around 18.5. VIX March futures are at the same level. Whereas the VIX remained below 12 for most of 2017, it has been significantly higher (that is, more normal) this year. The dollar is weaker today (and down 2.7% so far this year) and commodities are mostly higher. WTI crude oil is trading down a bit to $62.30/barrel. Bonds are modestly higher this morning. The 5-year and 10-year Treasury note yields ticked down to 2.63% and 2.86%, respectively. The trend for interest rates has been mostly higher this year, so bonds have traded lower. The popular iShares IBOXX Investment Grade Corporate Bond ETF (LQD) is down 4% this year; the iShares 20+ Year Treasury Bond ETF (TLT) is down 6.5%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

May 24, 2017

The major stock market averages opened higher again this morning (Dow +30 pts; SPX +.1%). The best performing sectors are real estate and materials. The defensive sectors (utilities, consumer staples) are also modestly higher. The VIX Index, a common gauge of trader fear, is again languishing around 10.6 and that’s the very low end of the range we’ve seen over the past 10 years. WTI crude oil is up slightly to $51.50/barrel. OPEC kicks off its policy meeting in Vienna today and investors expect an extension of the cartel’s production freeze. Most other commodities are lower. Both iron ore and copper have faded recently, probably a nod to modestly weaker economic data out of China. Oh, also Moody’s Investor Service downgraded China’s sovereign debt to Aa3 from A1. The ratings firm cited a very rapid rise in debt throughout the Chinese economy. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

November 14, 2016

The major stock market averages opened modestly higher this morning but quickly turned around (Dow -13 pts; SPX -.3%). Financials (esp. banks) are carrying the load, up 1.8% in early trading. But the Dow Transports are also up about 1.7%. Interest rate sensitive sectors (real estate, utilities) are selling off. The VIX Index is spiking a bit (+1% to 15). The dollar is sharply higher as interest rates continue to spike. So gold is down 1.2% and most commodities are lower. WTI crude oil is down under $43/barrel. Bonds are sharply lower. The 5- and 10-year Treasury yields are up to 1.68% and 2.24%, respectively. Both yields are close to 2016 highs. According to Bankrate.com the average 30-year fixed mortgage rate is up to 3.75% from 3.5% just a week ago. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.