The Market Week in Review

The U.S. stock market fell lower on the week amid the release of a phone transcript of President Trump asking Ukraine’s president to probe democratic frontrunner Joe Biden.  Interest rates also moved lower on the week as the 10-year treasury yield dropped from 1.75% to 1.69%.  Meanwhile the spread between the 10-year treasury yield and the 2-year treasury yield remains nearly flat at 0.06%.  The price of gold fell by 1.38% to $1,503 an ounce despite a rise in political uncertainty.  The price of crude oil fell by 3.35% to $56.14 a barrel due to reports of Saudi Arabia ceasing…

The Market Week in Review

The U.S. stock market ended the week mostly lower after the Chinese trade delegation cancels their trip to visit U.S. farms, signaling a lack of progress on trade negotiations.  Interest rates fell due to a rate cut by the federal reserve, with the 10-year treasury yield dropping from 1.90% to 1.75%.  Despite the federal reserve rate cut, the price of gold ended the week 1.9% higher amid the news of the Chinese trade delegation and a drone strike on Saudi Arabian oil facilities.  The attack on Saudi Arabian oil facilities also sent the price of crude oil up 5.7% to…

Are Bond ETFs Safe if a Bond Bubble Bursts?

Highlights It has been suggested that we are in the midst of a bond-market bubble. If so, the share prices of traditional bond ETFs could plummet when the bubble pops and interest rates rise. Defined maturity date bonds could fare better than traditional “perpetual duration” bond ETFs. “When everyone thinks central bankers, money managers, corporate managers, politicians or any other group are the smartest guys in the room, you are in a bubble.”       – Doug Kass, TheStreet.com There’s been considerable debate amongst bond aficionados as to whether the bond market is in the midst of a bubble.  Investopedia.com…

The Market Week in Review

The U.S. stock market ended the week higher as China announced plans to exempt certain U.S. products from tariffs and President Trump postponed additional tariffs on Chinese goods.  As a result of the positive trade news, as well as strong retail sales data, interest rates jumped higher with the 10-year treasury yield rising from 1.55% last week to 1.90% today.  The price of gold fell 1.28% on the week to $1,495 an ounce, which can also primarily be attributed to trade optimism and strong retail sales data.  The price of crude oil dropped by 2.8% to $54.94 a barrel as…

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