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.
Year to date, the Russell 2000’s scant 1% gain is dwarfed by the S&P 500’s 18% gain. But that could be changing. After dominating much of 2023, large-caps could potentially step aside for small-caps to take the majority of gains.
The recent pause in interest rate hikes by the Federal Reserve could finally signal an end to monetary policy tightening. But fixed income investors can keep on reaching for high yield opportunities with a pair of active ETFs from American Century.
Rising interest rates and inflation have kept emerging markets (EM) bulls from charging. But an improving macroeconomic environment could potentially be underway after the Federal Reserve’s recent rate pause.
Geopolitical factors and higher-for-longer interest rates have taken the steam out of 2023’s equities rally the past few months. But the recent rate pause could clear the path for gains in the S&P 500 for the remainder of the year.
Interest rates have been rising and yields have followed the same path. So traders bullish on bonds have essentially been seeing a repeat of 2022’s weakness. However, the recent pause in rate hikes by the Federal Reserve could bring more bulls back.
Given the response from China’s highest leadership levels, a fast recovery is preferable. The second largest economy will have to do this without a heavy influx of financial aid from the government. It would have to rely on measured steps in policy adjustments.
Tesla’s stock has fallen 20% the past month as bears continue to apply pressure following the electric automaker’s Q3 earnings report. A Tesla turnaround or more selling will provide enough volatility for traders unsure of which side to take, which is where leveraged exchange-traded funds (ETFs) can help.
Sugar prices continue their upward journey to new highs, but that shouldn’t prevent consumers from curbing their Halloween spending. From an investment standpoint, getting exposure to rising sugar prices amid inflationary pressures is an ideal move.
Rising yields have undoubtedly done a number on bond prices, but they open up bearish opportunities in certain inverse leverage exchange traded funds (ETFs).
High-interest rates are keeping the residential real estate market in flux. This is due to borrowing costs making prospective buyers and even sellers think twice.
Big tech has obviously been a major mover for the stock market in 2023. With third quarter earnings forthcoming, there should be plenty of opportunities for broad-based ETF as well as single-stock ETF plays.
When it comes to processing power for artificial intelligence (AI) applications, speed is essential, but chipmaker Nvidia also wants to be first in terms of manufacturing.
The higher-for-longer interest rates narrative could continue to negatively affect small-cap companies. This is because they look to stay afloat in the current macroeconomic environment.
Higher interest rates aren’t just a thorn in the side of prospective residential real estate buyers and owners. Additionally, commercial real estate is feeling the pangs of a high-rate environment. That could bring out more bears in the sector.
Though time will continue to reveal its staying power, environmental, social, and governance (ESG) thus far has proven that it has its place in the investment community.
Emerging markets (EM) bulls may have to continue playing the waiting game after a rough end to the third quarter. Thankfully, leveraged exchange traded funds (ETFs) can keep traders in the game.
The S&P 500 has fallen almost 3% within the past month, highlighting the volatility that typically hits at the end of the summer. For volatility through the end of 2023, investors may want to consider two active ETFs from American Century.
Big tech is often cited as the primary catalyst in 2023’s stock market rally. Yet at some point, the laws of market gravity will set in, and what comes up must eventually come down. As 2023 winds down, some market experts foresee pressure ahead for big tech.
2023’s market rally continues to center itself on the big tech comeback with certain themes exhibiting strength like artificial intelligence (AI) and cloud computing. While these themes can offer traders short-term opportunities, they can also persist in the long term as growth plays.
Artificial intelligence (AI) has been at the forefront of the 2023 market rally, offering investors long-term growth opportunity as well as short-term trading opportunities. For the latter, consider a pair of leveraged exchange traded funds (ETFs) from Direxion Investments.
China’s goal of self-reliance will certainly rely on innovation. Right now, the second-largest economy sits firmly atop the list of the World Intellectual Property Organization (WIPO) when it comes to innovation on a global scale.
When it comes to sheer equities performance over the last 30 years, there’s no denying the United States compared to the rest of the world. However, that could be changing according to one hedge fund manager.
Fund managers have been avoiding emerging markets (EM), especially when it comes to China. However, that doesn’t mean there aren’t opportunities that exist.
Confidence is returning to the bond markets and one sign is corporations’ willingness to start taking on debt again with new issuance.
Bearish China traders have had the upper hand for most of the year. Still, easing deflation could give bulls a glimmer of hope.
