1. In today's market, do you favor US Treasuries or bond funds? With rising inflation and potential increases in bond yields, I think bond funds, rather than US Treasuries, can provide greater flexibility and diversity to mitigate market uncertainties. While US Treasuries are secure government bonds, their fixed interest rates leave them exposed to inflation, so US Treasuries may provide lower yields. On the other hand, bond funds pool investors' funds to create a diverse bond portfolio. B...
This year, the trajectory of the US stock market has been significantly influenced by market expectations surrounding Federal Reserve interest rate cuts. Following the March 21 Federal Open Market Committee (FOMC) meeting, the Fed officially announced that it would maintain interest rates at their current level while signaling to the markets a potential for three rate cuts within the year. When central banks embark on an easing cyc...
Sector Rotation Tech has been killing it in the market this year, thanks to the artificial intelligence boom. The tech sector has lifted the entire market while other sectors have greatly underperformed. Occasionally, an overheated sector will begin to cool off as investors rotate their capital into underperforming sectors in expectation of a broadening rally or a change in the economy. Even the NASDAQ announced a special rebalancing later this month, ...
We discussed last week that USD and EUR are likely to strengthen on higher interest rate expectations in the U.S. and Europe. However currencies are not the only ones affected. Bonds are sensitive to interest rate changes too, especially the longer dated ones. In fact, bonds suffered the biggest losses in decades. Let's see the damages year-to-date using bond ETFs (duration close to 10y) as a proxy, - iShares 7-10 Year Treasury Bond ETF (IEF, in ...
Investors used a rocky week in the stock market to add to their ETF holdings. On net, $34.7 billion flowed into U.S.-listed ETFs during June, and $27.3 billion of that went into U.S. equity ETFs, even as the S&P 500 dropped 8.3%. International equity ETFs and U.S. fixed income ETFs also saw demand, gathering $4.9 billion and $3.6 billion ofnew money, respectively. Individual ETF Flows In terms of individual ETFs, the top asset gatherers for June were b...
There have been many instances in the past where the stock market has crashed. You can blame it on a war, a financial crisis, a pandemic, or just simple monetary policy. Currently our bear market is mainly due to the Fed tightening monetary policy by increasing interest rates. Either way when the market crashes we can lose money. What do we do when our investments are crumbling? It can be nerve wrecking watching your long term investments going do...
Thank you MooMoo community to vote for my moment, and yield curve is getting No.1! As promised, I am going to prepare videos for yield curve and Interest rate. For the unemployment rate, i will also prepare it as it also >10 votes, but it will be later as it is more important to anticipate the bottom in a recession. Hello everyone! Last video we talked about how to combine 2 bottoming signals to anticipate a bottom. Is there ...
Bonds are often touted as being a safer asset to stocks, for a variety of reasons: it is principal guaranteed and bond holders are ranked higher than shareholders should a liquidation happens. The principal guarantee is an oversold proposition because this only applies if the borrower is able to stay afloat throughout the bond tenure and repay at maturity. Bondholders have experienced rude shocks during crises whereby the borrowers go be...
With rising inflation and potential increases in bond yields, I think bond funds, rather than US Treasuries, can provide greater flexibility and diversity to mitigate market uncertainties. While US Treasuries are secure government bonds, their fixed interest rates leave them exposed to inflation, so US Treasuries may provide lower yields. On the other hand, bond funds pool investors' funds to create a diverse bond portfolio. B...
When central banks embark on an easing cyc...
Tech has been killing it in the market this year, thanks to the artificial intelligence boom. The tech sector has lifted the entire market while other sectors have greatly underperformed.
Occasionally, an overheated sector will begin to cool off as investors rotate their capital into underperforming sectors in expectation of a broadening rally or a change in the economy.
Even the NASDAQ announced a special rebalancing later this month, ...
If you want guaranteed returns on a low risk investment, then look towards fixed income investing. US treasuries are some of the least risky investments in the fixed income space.
$總債券市場ETF-Vanguard(BND.US)$ $新興市場美元債ETF-iShares(EMB.US)$ $美國短期國債ETF-iShares(SHV.US)$ $美國國債1-3月ETF-SPDR(BIL.US)$ $美國國債1-3年ETF-iShares(SHY.US)$ $美國國債3-7年ETF-iShares(IEI.US)$ $美國國債7-10年ETF-iShares(IEF.US)$ $iShares安碩10-20年國債ETF(TLH.US)$ $20+年以上美國國債ETF-iShares(TLT.US)$
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However currencies are not the only ones affected. Bonds are sensitive to interest rate changes too, especially the longer dated ones.
In fact, bonds suffered the biggest losses in decades.
Let's see the damages year-to-date using bond ETFs (duration close to 10y) as a proxy,
- iShares 7-10 Year Treasury Bond ETF (IEF, in ...
International equity ETFs and U.S. fixed income ETFs also saw demand, gathering $4.9 billion and $3.6 billion ofnew money, respectively.
Individual ETF Flows
In terms of individual ETFs, the top asset gatherers for June were b...
It can be nerve wrecking watching your long term investments going do...
As promised, I am going to prepare videos for yield curve and Interest rate. For the unemployment rate, i will also prepare it as it also >10 votes, but it will be later as it is more important to anticipate the bottom in a recession.
Hello everyone! Last video we talked about how to combine 2 bottoming signals to anticipate a bottom. Is there ...
The principal guarantee is an oversold proposition because this only applies if the borrower is able to stay afloat throughout the bond tenure and repay at maturity. Bondholders have experienced rude shocks during crises whereby the borrowers go be...
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